TOMBLIN:
TOMBLIN:

Arthur Hall, Senior News Editor

The Jamaica Public Service Company (JPS) is expressing concern that the long-running problem of electricity theft could cause its demise.

“For the JPS this might very well be the death knell … . There is no business in Jamaica that can lose $2 million to $3 million per month and still be viable, so for us it has reached a very critical point,” declared JPS President and CEO Kelly Tomblin yesterday during a media briefing.

Tomblin underscored that the JPS was at a financial precipice and could fall because it is in breach of a debt covenant which could trigger a demand for it to pay off US$425 million in debt.

According to Tomblin, the financial state of the company is worsened by electricity theft which triggered a penalty of US$30 million last year. That more than doubled the US$12.9 million which the JPS recorded as profit for the year.

“It is causing deteriorating financial performance that keeps me from doing many of the things that my team and I want to do to improve customer service,” Tomblin told journalists during a media briefing at the JPS’ New Kingston office.

“It is not just the theft, but it is also the penalty that we get because of the theft, so we are up against it and we don’t know how to combat,” added Tomblin.

Illegal connections removed

She said for the first three months of this year more than 54,000 illegal connections (throw-ups) were removed; 75 persons arrested and approximately 36,000 electricity audits conducted.

The JPS has also intensified the introduction of its Residential Automated Metering Infrastructure (RAMI) tamper-resistant metres with more than 22,000 persons connected at a cost of approximately $1,000 each. In addition, a special unit has been established to go after the commercial entities and other large users involved in electricity theft.

But Tomblin noted that these measures have not significantly reduced the level of electricity theft across the island.

“Estimates are that we still have 150,000 or up to 200,000 households stealing electricity and that’s against the backdrop of less than 600,000 customers … that could be a third of the people stealing so that is significant.”

Multifaceted approach

According to Tomblin, the problem of electricity theft has to be addressed in a multifaceted way because it is a socio-economic problem that cannot be addressed only by the JPS.

“We have a goal in the country that 100 per cent of Jamaicans should have access to electricity … but everybody cannot afford electricity, so what is the stop gap or the bridge? There is also the community acceptance of theft because we don’t see persons being arrested in droves.”

Tomblin argued that the root of the problem is crime and poverty and until these problems are addressed electricity theft will continue.

She charged that there needs to be tighter legislation with harsher penalties for electricity theft, even as she noted that the JPS does not benefit from the arrest of persons caught stealing electricity.

The JPS boss added that it needs the input of several different governmental and non-governmental organisations to come up with new measures to deal with the problem of electricity theft.

“We all have to get around the table and say let’s find a different solution because this one isn’t working.”

arthur.hall@gleanerjm.com

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There is so much talk and slow action about implementing alternative energy sources these days. Without a doubt, Jamaica will benefit from any decrease in cost for energy, but has anybody stopped to think of what will happen if we do not formulate firm strategies to manage consumption in all spheres of our daily life?

As it exists now, our main supplier of electricity is unable to generate the amount of power to meet its demands, and whether our dreams of rates US 14 cents per kwh becomes a reality or not, we must think outside of the box in an effort to control consumption.

Office equipment, especially computers, are often left on after use in the office. (PHOTO: AP)

For the most part, energy saving activities are centred around the use of household appliances, lighting, and air condition units, which consume the most electricity. However, there is not as much enthusiasm expressed in the public domain as to how companies should effectively manage their power consumption.

It is believed that by now, organisations would have been proactive with fully developed programmes in engaging their team members in the importance of keeping their operational costs down by carefully managing the use of electricity.

However, as these organisations become more dependent on information technology to drive efficiencies in their operations, there is usually a correlative increase in power consumption. In many cases, this increase could actually be greatly curtailed, but on the other hand, IT mangers who orchestrate equipment usage are never usually concerned with cost containment.

Desktop and laptop computers usually account for the majority of technology equipment used in most companies, and this is where the haemorrhaging of electricity takes place, simply because these units are left on for long periods when not in use.

Individuals in most organisations cannot be relied upon to shut off their computers when not in use for long periods, particularly at the end of the day and Friday evenings.

The continuous waste of power inhibits the Jamaica Public Service Company to meet its demands for power in areas of the island which have never been privileged to have this modern convenience many of us take for granted.

Organisations that operate more than 50 or more computers are at serious risk of inflated JPS bills because of this type of oblivious behaviour. The associated costs of operation really add up when tabulated on a per annum basis.

Let us do some simple mathematics:

If your PC is on for left idle for 16 hours each week day after the usual eight hour work day and on weekends for a full 48 hours :

The total wasted hours per week is (16 x5) weekday + 48 weekend= 128 hours

Per Year this adds up to 128 x 52 (weeks) = 6656 hours

Each computer uses 128W = (6656 x 128)/1000 = 822kwh

Cost for Electricity Per KW/h in Jamaica is US$0.44

Total Cost for wasted electricity per computer per year is 882 X $0.44 = US$375

The kilowatt hours used in the computation does not include hours that computers may be idle during the work day.

This figure may not seem like a whole lot but consider those large corporations in Jamaica that have 500 to 1000 + employees. If 200 computers were to be left running for those hours per annum then that corporation will be looking at a whopping J$7,425,000 ($US375 x 200 x ROE J$99 = US$1) in payments to JPS.

These are not just costs that are impacting the private sector. This dilemma is every taxpayer across the nation’s problem. Our government employs more people than any private sector organisation and the waste in electricity throughout the various ministries is staggering.

The government owns approximately 80,000 computers. If just 20,000 are to be left on for 128 hours then the cost to taxpayers is over J$742.5 million. The current public sector bill for electricity is over J$1.2 billion per month which will grow as the government strives to modernise its operations.

Many companies have introduced energy conservation awareness programmes which are created to help their employees to better understand the impact of their action on the companies’ bottom line; however the benefits are usually short lived. The senior management in these large organisations must look at other ways they can manage these processes with a view to ensuring a more favourable outcome.

The implementation of software applications which do not require human intervention, which will shut down these computers when not in use is in fact available and organisations at risk should look at the available options coupled with its awareness programmes.

While cheaper sources of energy are still a far ways off, the issue of power generation by the JPS will always be a problem that will never go away if conservation is not tackled in a very serious way.

Dean Johnson is a specialist in information technology, sales and marketing. You can email him at energybugja@gmail.com.

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Energy Minister, Phillip Pauwell. - File
Energy Minister, Phillip Pauwell. – File

Jerome Reynolds, Gleaner Writer

The Jamaican and Venezuelan governments are to work out a new payment deal under PetroCaribe, which could see Jamaican cement being sold in that market under a special arrangement.

The Energy Minister, Phillip Pauwell says, the Venezuelan government gave its assurance the deal will continue during a PetroCaribe summit on the weekend.

Paulwell says the Jamaican Government is grateful for the continuation of the deal by the

 

altMinister of Finance and Planning, Dr. the Hon Peter Phillips (right), in discussion with Minister of Transport, Works and Housing, Dr. the Hon. Omar Davies, before he closed the 2013/ 2014 Budget Debate in the House of Representatives on May 1.

The Government, through the Development of Bank of Jamaica (DBJ), has made some $360 million in loans available for the implementation of energy efficiency and renewable energy projects across various sectors.

 

Minister of Finance and Planning, Dr. the Hon. Peter Phillips, in closing the 2013/2014 Budget Debate on Thursday, May 1, in the House of Representatives, informed that residential customers can access up to $3 million.

The loans are available through financial institutions at an interest rate of 9.5 per cent and the money is repayable over eight years.

Students at Hammersmith Preparatory School in Trelawny perform during the official opening of the institution last week. More than 70 children are enrolled at the school. - CONTRIBUTED
Students at Hammersmith Preparatory School in Trelawny perform during the official opening of the institution last week. More than 70 children are enrolled at the school. – CONTRIBUTED

Daraine Luton, Senior Staff Reporter

THE TARGETED reduction of the consumption of energy within the public sector last year failed to meet the announced objective, falling short by two thirds.

Energy Minister Phillip Paulwell told

GTM Research Senior Analyst Shyam Mehta provides actionable intelligence for the solar module manufacturing industry.

ERIC WESOFF: APRIL 25, 2013

GTM Research Senior Analyst Shyam Mehta spoke at this week’s Solar Summit in Arizona on solar module manufacturing. Rather than preaching “big ideas [and] grand narratives [that] don’t always give you actionable intelligence,” Mehta tried to provide real-world data points and tried to “start from the ground.”

Here are a few of his points and the accompanying data.
The performance gap between p-type mono-crystalline silicon and multi-crystalline silicon is narrowing

Efficiency gains in conventional multi c-Si have accelerated and the gains have come “without significant increase in capex or material cost,” according to Mehta. Yet mono crystalline still commands a 4 cent to 8 cent per watt premium in sales price. Mehta suggests that the value proposition for p-type mono continues to deteriorate.

P-type might make sense in highly real estate-constrained Japan, but in the long term, Mehta sees n-type mono as a key to maintaining the efficiency advantage of mono. Panasonic, SunPower and Yingli are working on n-type cells.


Are 72-cell modules the future?

Mehta noted that 60-cell modules are the current standard but there are 72-cell, 96-cell, and 128-cell modules available. He said that 72-cell modules have gained significant market share because large modules can reduce balance-of-system costs by up to 7 cents per watt.

The 60-cell modules still have an advantage over larger modules in that they are more rigid, can be carried by one person, and more modules can be fit onto complicated rooftops.

Mehta suggests we will start to see increasing numbers of larger and different sized modules that are “highly segment-specific.”


Will module prices just keep dropping?

Spot pricing for polysilicon, as well as for cells and modules, has actually risen 5 percent to 15 percent this year. Is this an indication of a sustained price increase? Mehta points to some salient data from GTM research — 81 percent of ASP reduction over the last two years has come from margin evaporation and polysilicon. He notes that non-silicon materials such as glass and encapsulants have little cost-reduction potential remaining.

Long

The local oil refinery Petrojam, which has served Jamaica for a generation, should be shut down unless negotiations with the new Venezuelan government result in expansion plans, according to Energy Minister Phillip Paulwell.

The plant expansion has been delayed for eight years.

“In relation to Petrojam, this is a project that is well delayed. If Petrojam is not upgraded and expanded, we will have to shut it down. It is as simple as that,” Paulwell said at a press briefing at the Office of the Prime Minister on Thursday in Kingston.

“So we are awaiting the settling in of the new government and we were promised that as soon as that occurs, there will be a very important meeting with the players.”

Petrojam, the company, was incorporated 31 years ago. Government owns 51 per cent of the plant and Venezuela has the remaining 49 per cent since 2006.

Petrojam is projected to earn US$21.2 million net profit for this fiscal year ending April 2014 on US$1.9 billion of revenues. The capital expenditure for the year is projected at US$26.9 million.