Mon | Oct 18, 2021

JPS eyes rate hike

Published:Wednesday | June 23, 2021 | 12:12 AM

The Office of Utilities Regulation (OUR) is reviewing an application for a tariff adjustment by the Jamaica Public Service Company Limited (JPS).

The OUR said it expects to make a decision by September.

The regulator said 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 added 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 tarif. That would account for movements in inflation, the foreign exchange rate, and JPS’s technical performance.

Among other things, JPS is proposing:

· An average adjustment of 3.5 per cent 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 per cent for a typical residential (Rate 10) customer and 2.2 per cent for small business (Rate 20) customers.

· JPS’s proposal includes bill movement for large commercial and industrial entities ̶ Rate 40 and Rate 50 customers ̶ increasing within the range of three per cent to four per cent, respectively.

· A proposal for very large-scale businesses ̶ Rate 70 customers ̶ going up by 4.3 per cent.

· Rate 70 customers using a time of use (TOU) rate structure would see a 3.5 per cent 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 noted 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.