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Why uneven electricity rates?

Published:Friday | January 15, 2010 | 12:00 AM

The Editor, Sir:

As a matter of curiosity I need to ask: why is there a higher rate for electricity and water for commercial entities? Is it that they get a special type of water, or do they have to have special equipment provided to them by the Jamaica Public Service (JPS) for them to get electricity?

It seems foolhardy to me that an entity which is part of the productive sector, employing persons who will eventually pay tax, should be required to pay those exorbitant rates which, to me, seems like a disincentive to investment. Probably my under-standing of economics is not that good, but I would think it wiser if companies were given a lower rate so as to encourage more businesses.

Costs passed on

Factories manufacturing goods would be able to do so at a lower production cost, and hence, the commodity would be passed on to the consumer at a cheaper cost. Just think of a hotel that has to maintain air conditioning and adequate lighting at nights. How on earth do they pay these astronomical bills and remain in business? This seems an area the Government should look into.

I would suggest that the Government offer to use their 20 per cent in the JPS to subsidise the rate of electricity to factories and hotels at this time. The JPS should not be allowed to chalk up these fat profits while their bills remain a stranglehold around the necks of the productive sector.

I am, etc.,


May Pen,