JPS gets waivers from major lender
Published:Friday | May 10, 2013 | 12:00 AM
The Jamaica Public Service Company (JPSCo) said it has received waivers from three of its four major lenders, thus giving the company more time to become compliant with its loan covenant arrangements.
Up to the end of December 2012, the JPSCo had approximately US$430 million in loan payment outstanding, having breached its repayment agreement since March of last year, a problem which has been ongoing for the company.
"The breach has been ongoing, relating to the company not experiencing growth in sales and also increase in theft of service, and as the regulator continues to increase penalties as targets are not met," Kelly Tomblin, JPSCo president and chief executive officer, told the Financial Gleaner.
Tomblin said the company could not survive as the level of penalties by the Office of Utilities Regulation was increasing by US$2 and US$3 million per month.
She said the company was working with the regulator and other agencies to combat the level of theft of electricity, as well as to put growth strategies in place which will see improvement in sales.
Tomblin said further that JPSCo employees were giving up their time and talent as the company sought to work through its financial challenges. She emphasised that the company's continued viability would be dependent on a change to the regulatory approach in relation to the recovery of fuel costs.
However, she said the company's growth was tied to growth in the economy and that they are willing to play their part, while also putting in place other measures such as new products related to conservation and energy efficiency.