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No to a JPS increase at this time, says Young Entrepreneurs Association

Published:Thursday | April 17, 2014 | 3:21 PM

The Young Entrepreneurs Association of Jamaica says it is against a rate review at this time for the Jamaica Public Service Company Limited (JPS).

The JPS is seeking, among other things, an average increase of 21 per cent in the price of electricity for residential customers, and a 15 per cent increase for small businesses using less than 7,500 kilowatt hours of electricity per month.

However, the Association says that level of increase would further burden Jamaicans, especially small business operators who it says are facing significant challenges to meet their production costs.

It notes that a significant proportion of those costs relate to energy charges.

The Young Entrepreneurs Association says it is of the view that it is unfair to ask Jamaicans to pay more given the inefficiencies at the JPS.

The association is recommending that the Office of Utilities Regulations, which is carrying out the rate review, institute a policy whereby electricity is fed into the grid based on the rate of production with the cheapest being fed in first.

It further says the OUR should make adjustments to the heat and efficiency rate requirements forcing the JPS and other energy producers to constantly retool, upgrade, and increase their rates of operational efficiency.

The association says operational efficiency should be a pre-requisite for the granting of tariff increases.

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