Fri | Mar 5, 2021

OUR outlines decision on method used to determine electricity transportation charges

Published:Sunday | August 9, 2020 | 12:00 AM

The country's utilities regulator, the Office of Utilities Regulation, has issued its decision on the application of the electricity wheeling tariff methodology, used to determine charges on the transmission and distribution of electricity.  

It's decision took effect on July 31. 

Wheeling refers to the transportation of electric power. 

The OUR explained that the wheeling tariff method sets out the approach for determining connection charges and the process for allocating system losses to self-generators involved in wheeling transactions. 

In a release this afternoon, the agency said the decision is in respect of the 2019 to 2024 Rate Review Period. However, it cautioned that the method does not specify the actual wheeling charges, which it says will be determined separately after the OUR reviews JPS’s 2019 to 2023 JPS Rate Review application that the agency is currently examining.

The OUR outlined that its key decisions made in respect of the wheeling tariff method include the postage stamp method that will be used to determine electricity wheeling charges on transmission and distribution.  The agency said it had also made a decision on annual transmission costs, which it had derived from an analysis of JPS’s Cost-of-Service study that will be used to determine the transmission and distribution costs used to calculate wheeling charges. 

It outlined its other key decisions: 

  1. Information on monthly billing: Wheelers are to be billed monthly in Jamaican dollars for wheeling and other associated services. The bills shall be subject to the same base exchange rate, billing exchange rate and foreign exchange adjustment factor applicable to JPS’s regular customers.
  2. Connection compliance: In connecting to the electricity network, self-generators shall do so in compliance with the Electricity Sector Book of Codes.
  3. Application Process: Qualified individuals and organisations may apply to the Minister with responsibility for Energy for Wheeling licences.
  4. Wheeling qualification: To qualify for a wheeling licence, the applicant for the service must be a self-generator providing firm capacity and has an average annual demand of 1 MVA (megavolt amperes).

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