JPS CEO says its viability threatened, demands regulatory change

Reeling from a loan default the head of the Jamaica Public Service Company (JPS)says she will take a 10 per cent pay cut to help the company through the difficult times it now faces.



In making its case for an annual non-tariff increase, president and CEO of the light and power company, Kelly Tomblin argues that an under recovery of fuel costs for 2011 and 2012 has caused it to be in breach of certain loan obligations since March of last year.



Auditors of the JPS claim the breach gives its lenders the right to demand full payment on the remaining US$430 million of the loan.



Tomblin says other JPS employees are giving up their time and talent as the company seeks to work through its financial challenges and emphasises that the company's continued viability will be dependent on a change to the regulatory approach in relation to the recovery of fuel costs.