Tue | Aug 14, 2018

JPS reduces electricity charges again

Published:Wednesday | December 17, 2014 | 12:00 AM

Customers of Jamaica Public Service Company (JPS) will this month be paying the lowest charge per kilowatt-hour for electricity since the start of the year, a benefit of lower oil prices.

The lower cost is reflected in the fuel and independent power provider (IPP) charge, which accounts for more than 60 per cent of customers' electricity bills, the JPS said.

The company said the fuel and IPP charge on electricity bills has been reduced by 16 per cent in the last three months, moving from $26.881 per kilowatt-hour on September bills to $22.514 per kilowatt-hour on December bills.

The total cost per kilowatt-hour on electricity bills for December is $36.87, based on average monthly consumption of 165 kilowatt per hour.

The JPS said that as a result of the lower fuel costs, customers will see a two per cent reduction in their December bills, compared to November when bills were reduced by eight per cent.

According to JPS' analysis of the cost of electricity for this year, based on average monthly consumption of 165 kilowatt per hour, customers paid the highest - $42.66 per kilowatt-hour - for electricity in March, billed at a rate of $108.34 to the United States dollar. The fuel and IPP charge on bills was then at $28.82 per kilowatt-hour.

The next highest charge occurred in May when customers were billed at approximately $42.13 per kilowatt-hour when the fuel and IPP charge was $28.10 per kilowatt-hour.

JPS said the fuel and IPP charge changes from one month to the next, depending on how much JPS pays Petrojam, the primary petroleum product supplier in Jamaica, for the oil used to produce electricity.

It explained that the fuel rate that appears on bills each month is based on the cost of the fuel used to generate electricity the previous month. The fuel and IPP charge on December bills are therefore based on what JPS paid for the oil used to generate electricity in November.

"Despite the drop in the fuel charge on bills, JPS is encouraging customers to continue their conservation efforts," the company said in a statement.