JPS applies for rate increases
The Office of Utilities Regulation (OUR) is reporting that it is currently reviewing an application for a tariff adjustment by the Jamaica Public Service Company Limited (JPS).
The OUR says it expects to make a decision by September.
The regulator explained that the current filing is the utility provider's first application for an annual tariff adjustment following the conclusion of its 2019-2024 JPS tariff review process in December 2020.
It adds that the 2021 filing is in keeping with the annual tariff review provision in the Electricity Licence, 2016, which allows for adjustments to the company's revenue targets each year, over the 'life' of the five-year tariff, to account for movements in factors such as inflation, the foreign exchange rate and JPS' technical performance.
Among other things, JPS is proposing:
* An average adjustment of 3.5% of the non-fuel tariff.
* JPS is assuming average fuel and Independent Power Producers' (IPP) rates of J$25.85/kWh and J$11.41/kWh respectively.
* JPS has proposed a total bill impact (including Fuel and IPP charges) of 3.8% for a typical residential (Rate 10) customer and 2.2% for small business (Rate 20) customers.
* JPS' proposal includes bill movement for large commercial and industrial entities ̶ Rate 40 and Rate 50 customers ̶ increasing within the range of 3% - 4% respectively.
* A proposal for very large scale businesses ̶ Rate 70 Standard customers ̶ going up by 4.3%.
* Rate 70 customers using a Time of Use (TOU) rate structure would see a 3.5% increase.
* JPS has also proposed an annual (non-fuel) revenue target for 2021 of J$49,131M, versus the company's (non-fuel) revenue projection of J$43,751M should the existing tariff remain unchanged.
Meanwhile, the OUR notes that following its 2019-2024 JPS Tariff Determination Notice last December, the company appealed a number of the regulator's decisions to the Electricity Tribunal.
It adds that some of these matters were raised in the company's 2021 application and are still pending before the tribunal.
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