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OUR plan spells out 10-digit dialing, energy savings and big water investments

Published:Friday | January 13, 2012 | 12:00 AM

Steven Jackson, Business Reporter

The Office of Utilities Regulation (OUR) has revealed plans that will force 10-digit dialing for local and overseas phone calls, in its Business Plan and Budget 2012 released this month.

The plan also mentions that 72 water projects valued at J$13.9 billion are to be executed, and US$7 million (J$600m) of savings are expected on power generation.

Jamaica is expected to receive a new area code from the North American Numbering Plan Area, in addition to the '876' code currently in operation.

"Our telephone numbers under the existing area code will shortly be exhausted. In order to ensure that telephone numbers will always be available, a new area code must be introduced," said Michael Bryce, public affairs officer at the OUR.

It means that Jamaica will have two area codes by yearend, which will require callers to dial 10 numbers instead of the current seven, in order to avoid confusion in network traffic.

"Any location where there are two area codes in any one city you must have 10-digit dialling," said Bryce.

Jamaica formerly had five-digit dialling which was extended to seven digits more than 20 years ago.

The new water projects fall under the 'K' factor fund which finances capital projects from customer bills.

"Of the 72 projects, 46 are related to non-revenue water reduction and water supply improvement, and 26 were related to sewerage/wastewater treatment," stated the 100-page business plan released this month.

Last November, the National Water Commission (NWC), announced that it would embark on J$100 billion worth of projects over five years that would make water lock-offs in all parishes a thing of the past.

"It is very likely that the OUR figure is a subset of that $100 billion ... to be funded by a combination of K factor and other sources," Charles Buchanan, head of public relations at the NWC, told the Financial Gleaner on Thursday.

Turning to the national power provider, Jamaica Public Service Company (JPS), the OUR said the adjustment to the allowable heat lost in the generation of electricity would amount to millions in savings.

"The adjustment to the heat rate target is expected to yield US$7 million required over a twelve-month period for a (fund) facility. Various conditions agreed between the majority shareholders of JPS, Marubeni, and the Government (minority shareholder) have been approved," said the OUR.

Queries to the OUR on the precise nature of the fund to which the US$7 million would flow went unanswered up to press.

The heat rate target is an efficiency measure which the OUR sets in its tariff reviews. JPS announced that it invested J$10 billion in the last 10 years to improve its heat rate by 20 per cent to 10,000 kj/kWh. It stated that the implementation of new generating units would further reduce its heat-loss rate.

Its newest investment is a J$52-billion (US$602 million) power plant, which will add 360 megawatts of generating capacity to the national grid and replace older generating units.

steven.jackson@gleanerjm.com