$1B gov’t initiative coming to boost uptake of pre-paid electricity, combat theft

The Government will provide $1 billion to boost the uptake of pre-paid electricity offered by the Jamaica Public Service (JPS) as part of wider efforts to combat theft and support low-income households, Finance Minister Fayval Williams announced on Tuesday.

She stated that the funds will assist the first 20,000 first-time customers who sign up for pre-paid electricity.

"This $1 billion will go towards paying for house wiring and inspection, helping those with illegal connections to get legally and safely connected to the JPS grid," she said, describing it as "the most ambitious programme to allow affordable access to pre-paid electricity."

She added: "We know that the cost of house wiring and inspection can be prohibitive for many people, and so, as a caring government, we are absorbing that cost in order to begin addressing this massive electricity theft problem.”

According to Williams, pre-paid electricity "will put legal electricity within reach for many."

"Because pre-paid electricity allows you to buy the amount of electricity you can afford when you can afford it, you have complete control. You will be able to buy the card or vouchers from hundreds of outlets across Jamaica, just like how you buy phone cards now. You may also be able to top up online. The technology will make it easy."

The announcement comes amid heightened concerns about the cost of electricity theft.

Williams noted that in January, Energy Minister Daryl Vaz informed the House of Representatives that in 2023, "the electricity stolen amounted to a staggering $40.385 billion. That works out to $13,500 for every man, woman, and child in Jamaica."

"I believe that on both sides of the aisle, we all want a solution because all of us who pay for electricity have this added burden on our monthly bills," she said, noting that Opposition Spokesman on Energy Phillip Paulwell also shared the data.

"But it’s not just those of us who can afford post-paid electricity who bear this burden. More importantly, the people who steal electricity are in need of a solution because, for the majority of them, the cost of post-paid electricity is prohibitive relative to their earning capacity," she continued.

The finance minister emphasised that pre-paid electricity is available to anyone, not just vulnerable communities or people with illegal connections.

The GCT on pre-paid electricity is 7 percent, she confirmed.

"This is an offer you cannot refuse," she said.

How the government proposes to incentivise takeup:

- The first 20,000 new pre-paid customers will get $4,000 credit for electricity per month for 6 months under the Government's House Wiring and Inspection Programme that will be implemented by Jamaica Social Investment Fund (JSIF).

- $2,000 of that $4,000 credit will come from the JPS and the other $2,000 will come from the Government.

- JPS and JSIF will identify vulnerable communities and provide the sign-up procedures.

- The $4,000 credit is worth 50% of the average monthly bill of a typical pre-paid customer currently on the JPS system.

- JPS data shows average monthly bill for pre-paid customers is $8,000

- 17,000 customers are currently using the pre-paid electricity metre.

- Jovan Johnson

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