A JPS technician at work. - File
A JPS technician at work. – File

Over 805,000 households in Jamaica or 91.3 per cent of the total captured in the 2011 census of population and housing, use electricity as a source of lighting.

The number is more than 200,000 bigger than the customer base of the country’s sole transmitter and distributor of electricity, the Jamaica Public Service Company (JPS), which puts the number of clients on its books at under 600,000.

Responding to the findings, JPS Head of Corporate Communications Winsome Callum said the gap “probably an indicator of the number of households that are using electricity illegally”.

According to the census, a not insignificant number of the total 881,078 households captured under the study – 48,629 – use kerosene as their source of lighting. Other sources of lighting not specifically identified are used by 7,515 households, while 19,635 did not report a source.

As expected, St Andrew households are the largest consumers of electricity with 184,176 having access; followed by St Catherine where 151,865 households are powered, Clarendon with 68,286 households having access, St James with 56,403, and Manchester where power penetration is across 54,125 households.

Of the total number of households, 80 per cent or 705,235 use liquid petroleum gas (LPG) as a source of fuel for cooking; 15,803 or 1.8 per cent use electricity for that purpose; 8.9 per cent or 78,700 use wood; and 6.1 per cent or 53,876 use charcoal. Less than one per cent or just 94 households use biogas; and only 25 households use solar energy – suggesting that the use of renewables in Jamaica is still in the infancy stage.

The five largest concentrations of LPG users are found in St Andrew followed by St. Catherine, St James, Clarendon and Manchester.

According to the census conducted by the Statistical Institute of Jamaica (Statin), just 16 per cent of households or 141,835 have access to treated piped water for drinking. Another 68,839 households reported having access to treated drinking water, but it is not piped.

Statin found that 503,411 households or a significant 57.1 per cent have access to piped water used for drinking, but said it is not treated. Another 85,392 households or 9.7 per cent have access to water for drinking from other sources not specifically identified, but it is also not treated.

Statin has not identified a reason for the large number of households not having access to treated water for drinking.The census found that 7.5 per cent or 66,843 households now use bottled water for drinking.

However, the low level of treated piped water used for drinking is not necessarily reflective of the state-owned National Water Commission‘s (NWC) services according to Statin’s Director of Censuses, Demographics and Social Statistics Dr Valerie Nam.

Public relations officer at the NWC Karen Williams said the agency has a customer base of about 425,000, comprising residential and commercial consumers and that it treats all the water it supplies.

Consumption of the NWC’s supplies is reflected in the census document by separate breakdown of households’ source of water used for domestic purposes. It shows that 450,625 households or 51.1 per cent obtain the commodity from a public source and have it piped into their homes.

Another 140,678 or almost 16 per cent of households had water piped into their yard; 52,371 or about six per cent obtain it from standpipes and 10,776 or 1.2 per cent get it from catchments.

mcpherse.thompson@gleanerjm.com

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Customers of Jamaica‘s main electricity supplier, Jamaica Public Service Company (JPS) are to see higher prices for electricity for a second straight month.

JPS will hike electricity costs, by about 5.5 percent.

That increase comes as fuel charges rose to a five month high.

Last month, fuel and IPP charges rose by as much as 17 percent.

That increase was cited as the main reason behind inflation in September alone, being equivalent to that of the previous five mnths combined.

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Oil gave up early gains and hovered around $92 per barrel on Wednesday after the government reported a bigger-than-expected increase in United States crude supplies.

Supplies rose by 2.9 million barrels last week. That was almost double what analysts had forecast, according to Platts, the energy information arm of McGraw-Hill Cos.

Gasoline supplies also rose. Analysts had predicted a decline.

The extra gasoline and oil in storage tends to push prices down, because it suggests that there’s enough to go around, or that demand is low.

In afternoon trading on Wednesday, oil was down 7 cents to $92.02 per barrel on the New York Mercantile Exchange.

Oil had been trading above $92 per barrel earlier in morning, as European stocks had a positive day, and hopes grew that Spain might be on the verge of requesting a bailout.

The waffling oil prices matched stock indexes that are also mixed in midday trading. Technology giants IBM and Intel both said customers are holding back. Economic weakness generally means less demand for oil, pushing prices down.

Brent crude, which is used to price international varieties of oil, fell 80 cents to $113.20 a barrel on the ICE Futures exchange in London.

In other energy futures trading on the Nymex, heating oil fell 2 cents to $3.17 per gallon, natural gas gained 5 cents to $3.48 per 1,000 cubic feet and wholesale gasoline fell 6 cents to $2.79 per gallon.

– AP

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THRICE in the last two months or so, where this writer lives has been out of power for more than three hours – twice for about 12 hours. Power outages are almost daily affairs for many Jamaicans and the usual excuse about the “teams” being too busy tending to other faults to respond with alacrity no longer rings with any conviction.

Perhaps a part of the problem is that JPS appears to view “emergency” differently from their customers. A customer experiencing a power outage calling JPS is first presented with an option relating to bill balance or about payment to JPS. The second option is to report an emergency. When one enters that menu number, one is reminded that the line is for emergencies only and further input is required from the customer to proceed. The caller is then reminded about recording of the call for quality purposes. Then, and only then, can one speak to a representative about the emergency

Science, Technology, Energy and Mining Minister Phillip Paulwell examines one of the solar panels at his home. Claude Clarke applauds the minister's lobby for a mix of energy fuels but parts ways on the push for a break-up of JPS's monopoly on electricity distribution.- Contributed
Science, Technology, Energy and Mining Minister Phillip Paulwell examines one of the solar panels at his home. Claude Clarke applauds the minister’s lobby for a mix of energy fuels but parts ways on the push for a break-up of JPS’s monopoly on electricity distribution.- Contributed

Claude Clarke, Contributor

While I disagree with Phillip Paulwell’s assertion that the distribution of electricity should be opened up to competition, I am convinced that his newly announced policy – to open the choice of the energy sources used to produce electricity to competition – is potentially the key to bringing electricity costs to levels that would give the Jamaican economy a chance to compete and make this essential service affordable for the consumer.

Present and known technology allows electric power to be most efficiently delivered through transmission lines. This type of delivery involves an extensive and expensive infrastructure, and seeking to replicate it would be highly wasteful of capital. New entrants to the business would be required to use valuable capital to construct very costly infrastructure, and Jamaicans would, ultimately, have to pick up the tab. This, combined with the fact that distribution represents no more than 20 per cent of the price of delivered electricity, supports the view that electricity distribution is a natural monopoly.

Monopolies are not always bad, and in many situations they are necessary for the most efficient delivery of an economic product. However, in these circumstances, it is Government’s duty to use regulations to stand in the place of the market to ensure best prices, quality, and service.

A fairly well-developed electricity distribution infrastructure already exists in Jamaica, and Government is in a position to apply the necessary regulatory and oversight authority to force the monopoly distributor to meet specific cost targets and set connectivity charges that are fair to its generation competitors.

essential national objectives

In contrast, electricity generation can only benefit from competition. As I said in July last year in my

SOMETHING is drastically wrong with this country.

We have been informed by the best of our scientific minds that close to half of us are mentally unstable and yet we have never considered that among that 50 per cent may be politicians.

PAULWELL… leading light to draw the PNP into new 21st century

We seem to be people who mean well, but somehow don’t want to do well.

In the time of the last administration, a lot of noise was made about transforming energy from expensive oil-burning to the interim stage of LNG. It wasn’t exactly earth-shattering, but it indicated that we were on the right track towards making our country more competitive in the region and giving our people a chance to make their lives more meaningful.

As the talk of moving to liquid natural gas (LNG) gained momentum, so it seemed did the savvy of those who made up the last JLP administration. First, the Office of the Contractor General pushed its way to the front and the JLP Government wilted as the people rejoiced. As one listened to “the people” it must have seemed that there were many scallywags stalking the halls of JLP party central.

An election was later held and the JLP was soundly rejected.

Close to one year later, the only sound voice in the present PNP administration seems to be that of PNP minister, Phillip Paulwell.

We have all accepted the fact that if we do not configure our energy-producing sector to move away from heavy oil-burning, we will remain in the backwoods forever. That we know. In the last JLP administration, one which made its name through making Jamaicans even more distrustful of politicians than they were before, once the matter of LNG arose, all eyes lit up!

Too many people were making too much money, we thought. And even if we did have the full picture in our minds, it must have meant that we the people were being shafted. Or so we imagined.

In the end, a weak JLP administration bowed to the dictates of political and public pressure and the entity that had won the concession for introducing LNG to Jamaica, Exmar, and its local connection were scuttled.

The PNP rejoiced.

With a PNP administration that is close to one year old and is generally suffering from “old-age” in so short a time, there have been a few areas which have attracted my attention, and it seems the attention of the general public, if word at street level still has any credence. I speak, of course, of the energy ministry.

First, there have been the efforts in levelling the playing field in the mobile phone market. Somehow that seems to be on the reverse as one big telecoms player has been playing grand games with the public. Second, a convenient and totally indiscriminating public has bought the idea that that particular telecoms entity is deeply in love with them.

That said, Minister Paulwell’s strident efforts to bring about a lowering of the energy bill to ALL in this country must be lauded.

First, there was the thought among many that the LNG project was going to be government-driven and run by a historically proved inefficient government, especially one dominated by the PNP, an administration that has a history of being anti-business and too socialist-oriented. Second, as the world turns, and especially in Jamaica, corruption was the big bugbear.

The present arrangement which takes the LNG supply project totally out of the hands of government, once it had reached the stage of deciding the directions of the energy policy of the country is, to me, the best compromise. It is not the perfect one, the one that I would have preferred – that of reverting to awarding the LNG bid to Exmar and its local partners. To me, however, Minister Paulwell has committed his ministry and government to the JPS lowering energy rates by 50 per cent by the year 2015, a time when the people of this country will still have the chance to make a decision on the direction of his government.

Let us face it – there is not much that the Portia Simpson Miller administration can feed to the people as pap at this time. It won the 2011 elections on wild and reckless promises and mostly on the fact that it placed the populist PM Simpson Miller out front to play her song-and-dance routine to the people. Since the win, her song has died and her dance has failed to move us, but in the bleachers, the political watchers know that the Opposition JLP has a next-to-impossible chance of regaining all that was lost and given away by the abysmal and indecisive leadership of Bruce Golding.

Seaga was dead right!

The IMF analysis of economic trends for the next five to 10 years makes for bleak reading. Jamaica has lived most of its post-independence life as a mendicant nation where our prime ministers earn their kudos and clout at the polls for selling to the people their potential for borrowing the most. To a people of low-information voters and aggressive businessmen who are always seeing in such an arrangement an opportunity to make an extra buck, that simply feeds into the idea that government in this country must not be a facilitator as much as it ought to be a feeding tree.

The people rely on this, especially whenever a PNP administration is in power, and big businesses know that as much as they hate to do business during a PNP administration, if they want to survive, the ball has to be kicked back and forth. Again, Seaga was right.

In an administration filled with too many old socialists, Phillip Paulwell is a leading light in the effort to draw the PNP into the new 21st century. Finance Minister Peter Phillips has long shucked off his socialist leanings as the rigours of the current economic climate present themselves to him in a most unkind light.

He has to face the harsh reality of an IMF programme in danger of being derailed by the historical politics of the PNP. The negotiations need the full cooperation of all inputs from the various ministries such as the energy and commerce ministries.

We all know that the prime minister is out to lunch, so not much can be expected there more than a tip to the poor waitress, a hug and a kiss. Poor “she”.

Keep doing your thing, Minister Paulwell. Who knows, maybe even the most inflexible leader can be brought fully into the 21st century.

Minister of Science, Technology, Energy and Mining, Hon. Phillip Paulwell, says the Government firmly believes that it is the private sector that should drive investment in energy projects.

He said the duty of the state is to create the enabling environment for investment and then for regulating that environment to ensure that the rules are fair and that everyone observes them.

“We have taken the important step in creating the legislative environment. We now need to improve on the bureaucracy of our regulatory environment because we need those investments to bring in jobs and we need to reduce our crippling oil bill,” he stated.

The Minister was speaking at a stakeholder workshop yesterday (Oct. 9) at the PCJ Auditorium in New Kingston, for the design of a streamlined process for private sector investment in renewable energy projects, particularly hydropower projects.

Jamaica‘s renewable energy market is fully liberalised and open to competition, following the Senate voting unanimously on Friday (Oct. 5), to approve the Extension of Functions Amendment Order, removing the Petroleum Corporation of Jamaica‘s (PCJ) exclusive right to exploit and develop renewable resources to Jamaica. The move followed similar action by the House of Representatives the previous week.

The Minister said the move “is in keeping with the goals of our national energy policy, which calls for a modern, efficient, diversified and environmentally sustainable energy sector providing affordable and accessible energy supplies.”

More than 14 government ministries and agencies with responsibility for regulating and legislating various components of the hydropower developmental process, are participating in the training workshop, which is being held over two days.

Noting the importance of the training, Minister Paulwell said the process for approvals, permitting and licensing for small hydro development is “extremely time consuming” as various agencies need to be consulted.

“Right now, Jamaica needs a local approvals process which is time sensitive with clear indications as to how long the entire process will take cognisant, of course, of fitting into the overall time frame of the complete business process. We need a local approval process, which is interactive… transparent so that investors know how many steps are included and which ones to take,” he said.

The training is being delivered by experts from the United States Federal Energy Regulatory Commission (US FERC), and will address issues including, energy infrastructure siting, laws and regulations, licensing processes and interagency interactions. FERC will provide advice based on their experience regulating the hydropower sector in the USA.

The Government has received financing from the International Bank for Reconstruction and Development towards the cost of the Energy Security and Efficiency Enhancement Project.

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Oil rig in the Gulf of Mexico. - File
Oil rig in the Gulf of Mexico.

A strong warning from the World Bank that growth in Asia may slow further dragged the price of oil Monday to its lowest close in two months.

The World Bank signalled the possibility of a “more pronounced slowdown” in China, the world’s second-largest economy after the United States. It also cut its growth forecast for Asia. Red-hot growth in emerging markets like China and India helped boost oil consumption coming out of the global recession.

Benchmark crude fell 55 cents to close at US$89.33 in New York. The contract has not closed lower since August 2.

At the pump, gas prices remain stubbornly high. The national average for gasolene rose 3 cents on the weekend to US$3.818 a gallon. But Californians are now paying an average of US$4.668 a gallon, the highest price in the United States, after a jump of 50 cents in the past week. Some motorists there are paying more than US$5.

In response, Governor Jerry Brown has ordered state smog regulators to allow cheaper winter-blend gas to be sold three weeks early. And Senator Dianne Feinstein has called for a federal investigation because she doesn’t think the higher prices are related to supply and demand.

Experts are predicting prices in California could climb to an average of US$4.85 before coming down.

In London, Brent crude, which is used to price international varieties of oil, fell 20 cents to US$111.82.

In other futures in morning trading, natural gas gained less than a penny to reach US$3.40 per 1,000 cubic feet. Heating oil lost a penny to close at US$3.14 per gallon, and wholesale gasolene fell 6 cents to finish at US$2.89 per gallon.

– AP

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