Kelly A. Tomblin

 

The Jamaica Public Service Company (JPS) is willing to consider coal as an alternative fuel source for electricity generation, but it first wants to execute plans to develop the LNG plant to which the Government finally gave the green light just over a week ago.

A University of the West Indies think tank has conducted research which shows that LNG was a less expensive option to oil, but a more expensive alternative to coal-generated energy, which they found was the most efficient source in powering a light bulb.

JPS chief executive officer Kelly Tomblin – a 25-year veteran of the utilities business in the United States and other markets and who took up the position at the light and power supplier three weeks ago – said the company and its shareholders were interested in investing in any long term solution for Jamaica, including coal.

However: “As an outsider, if I look to where we are, I would encourage us to execute on the plans that we’ve all agreed to as a first step,” Tomblin said.

“We believe that long-term fuel diversity is a number one issue,” Tomblin told the

Transformation of the energy sector, to bring more players into the industry so as to achieve greater efficiencies and reduce costs to consumers, was the key focus of the Minister of Science, Technology, Energy and Mining (STEM), Phillip Paulwell, during the first 100 days of his stewardship.

The Minister, recognising that Jamaicans are burdened by the high energy prices, said the time has come to liberalise the sector and introduce a fully competitive arrangement that

 

Kelly Tomblin, the new CEO of the Jamaica Public Service Company (JPS), the light and power company, has started well. Rather, in her first interview with this newspaper, she was soothing.

But neither empathy nor intent to soften the hardened image of the JPS will be enough. If JPS is to be a player in Jamaica’s energy future, it has to be fully engaged in efforts for the efficient delivery of power to customers, which will require it to be a vastly more efficient operation.

Put another way, it just won’t do for the JPS to use two barrels of oil equivalent to generate the electricity to light a simple 100-watt incandescent bulb for a year. Nor can it be tolerated that more than 70 per cent of the fuel, mostly expensive oil, it consumes goes to waste, producing nothing.

Indeed, JPS has to convince Jamaicans that it can, and will, be a serious contributor to efforts to slash the price of electricity from around US$0.41 per kilowatt-hour to the US$0.10-US$0.15 required for the Jamaican economy to have a reasonable chance of competing with its neighbours.

In this regard, the contribution of the Energy Think Tank at the University of the West Indies, Mona, to the energy debate, by making the issue accessible to most people – such as with the light bulb example – is important.

The group bases its conclusion on the fact that the value of a barrel of oil equivalent is 1.7 megawatt hours, or 1,700 kilowatt-hours (kWh). A 100-watt incandescent bulb, burning continuously for 365 days, or 8,760 hours, would consume 876 kilowatt-hours, or 51 per cent of the electricity output of a barrel of oil equivalent.

But at the rate at which JPS converts its fuel to electricity, the company gets only 35 per cent of its energy value. Old equipment and other inefficiencies mean that 65 per cent goes up in smoke – literally.

Rethink both cost and technology

Of the electricity generated by the little more than one-third of a barrel of oil that is actually converted to power, 23 per cent is lost in transmission and distribution, a combination of technical loss and consumer theft. So, only 27 per cent of the potential energy from a barrel of oil burned by JPS reaches its consumers, or, in this case, the Energy Think Tank’s 100-watt bulb.

That’s untenable!

We note Ms Tomblin’s allusion to the 360-megawatt gas-fired plant that JPS won a tender to install, which promises to cut the cost of electricity by a third. That is a start, but hardly the full solution to an energy-competitive Jamaican economy. For while fuel type is critical, it is not the only issue relevant to the delivery of competitive power in Jamaica. Plant technology, for instance, will be important, as well its financing cost.

These matters need to be fully and honestly ventilated – from all angles. So, too, must be the matter of competition.

On the latter point, given her assertion about the inefficacy of multiple grids in small countries, we suppose that Ms Tomblin has not yet been fully briefed on the competition model for transmission and distribution floated by the Government.

We look forward to an informed discourse, but urgent action.

 

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Former President of the Used Car Dealers Association Ian Lyn is repeating calls for the PNP administration to move decisively to roll back the ad valorem tax on gas.

Motorists have been calling for the removal of the tax on gas in light of increasing fuel prices.

Lyn said the government needs to honour its election promise to roll back the tax.

Lyn said there would be no need for a fare increase, if the gas tax is withdrawn.

 

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Come May 1, consumers will be able to apply for a net billing licence from the Jamaica Public Service (JPS) and the Office of Utilities Regulation (OUR), Minister of Science, Technology, Energy and Mining, Hon. Phillip Paulwell,has announced.

Speaking at the opening of the Jamaica Power Summit 2012 at the Jamaica Pegasus Hotel in New Kingston today(April 19), Mr. Paulwell said that both commercial and residential consumers can apply for the licence.

Net billing is provided for under the new energy licence renegotiated with the JPS.

 

TWENTY-ONE-YEAR-OLD Kimarley Stewart still shudders when he remembers the cold muzzle of a gun pressed against his abdomen. Stewart said he had the frightening experience as he pumped fuel at a service station on Old Hope Road in St Andrew two Sundays ago.

According to Stewart, about 11:00 am three men travelling in a white motor car drove into the station and told him to fill the car’s gas tank. Stewart — who had been serving as a pump attendant there for eight months — complied, but when he tried to collect payment for the gas, he was grabbed by one of the occupants, who, along with his two cronies, brandished guns and threatened him into silence.

According to the JGRA, service stations are reeling from losses due to employee dishonesty.

 

The thugs, he said, then robbed him of his cellular phone, about $3,000 in cash, and drove off without paying for the fuel, which was valued at about $3,000.

According to Stewart, who said the ordeal lasted about five minutes, he was the only attendant serving outside at the time of the heist. Another employee and a security guard were both inside the gas station’s convenience store.

The Cross Roads Police confirmed that the robbery was reported to them and an investigation has been launched.

But even with that done, Stewart is not happy.

The owners of the service station, he said, accused him of organising the robbery, and demanded that he repay the stolen money.

“I asked my supervisor if I would have to pay for the loss and she went to talk to the manager,” he told the Jamaica Observer. “She came back to me and told me that I would have to pay back the money for what had happened.”

That, Stewart said, pushed him to visit the manager, but his employer, he alleged, confirmed the information related to him by the supervisor.

Stewart said he got angry and an argument developed between himself and the manager.

“I said ‘no, I couldn’t pay for that. How can I pay for something that I could not prevent? That does not make any sense at all,” argued Stewart. “His comments were that somebody had to pay for it, and that it was going to be me.”

“I got robbed at gunpoint. I was looking into three guns — one on my belly and two pointing on me,” he said. “And now they are going to ask me to pay back money? These people don’t care about anything but their money,” he said, citing this as his reason for taking his story to the media.

Reflecting on the robbery, he said, “All I was saying was ‘please Lord, don’t let them shoot me’. That was all that was in my mind. I was even preparing to take a gunshot.”

Stewart, who is the eldest of his mother’s four children, said one of his major concerns during the robbery was being killed and leaving his mother behind without his support.

Since last Tuesday, when the argument occurred, Stewart has not returned to work. He said the trauma of the hold-up and the accusation have been too much for him.

But when contacted by the Jamaica Observer last week, one of the owners of the family-operated service station denied Stewart’s claim that he was asked to repay the stolen money. That couldn’t be the case, the operator said, as the robbery was still being investigated.

“We have not had any arguments with him in terms of payment. We are doing our internal investigation, as well as the police are doing their own investigations,” stated the operator, who asked not to be named.

The operator noted, however, that Stewart may have breached standard service procedures, for which he can be held liable.

“When a customer comes up, you ascertain how it is that you are going to be paid and you try to collect the money up front or during the dispensation of the gas,” the owner explained.

“If it is you decide to give the gas and then collect after, then that is at your discretion. If you do not know the person, or if you have any reason to be suspicious, then you try to collect the money up front,” the owner added, questioning Stewart’s reason for not collecting payment before he began serving the men.

A second breach, the owner claimed, was that Stewart had his cellular phone on him at the time of the incident.

Employees are not allowed to have in their possession jewellery or cellular phones while working, he said.

“But we have not drawn any conclusion as to what happened,” the operator continued.

Last Thursday, Derrick Thompson, first vice-president of the Jamaica Gasoline Retailers Association (JGRA) — while noting that he was not informed enough to speak about the incident — said service stations were reeling from losses due to employee dishonesty.

“We have about 300 gas stations locally, and within the network every day or every other day we suffer a robbery, and it comes in many different forms,” he said.

“One, we suffer from employees. Every day that I talk to a [JGRA] member they are losing from their employees. The second thing is that we are being held up by many different people,” he said, noting that despite the employment of security guards and bolstered efforts by the police, gas stations remain targets.

Last month, police arrested three men, seized two illegal firearms, and recovered about $2 million in stolen cash and cheques, following a heist at the Total Service Station on Spanish Town Road in Kingston.

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About 871lb of coal is needed to power a 100-watt light bulb for 12 months.

 

RESEARCH CONDUCTED by a University of the West Indies energy think tank indicates that coal is the most efficient energy source in powering a light bulb.

Arguing that given the current inefficiencies in the electricity production and distribution system, it takes approximately two barrels of oil to keep a 100-watt light bulb burning continuously for a year, the think tank said using coal-generated energy to do the same job would reduce the cost significantly.

“Using LNG instead of oil would cost roughly half the amount to burn the light bulb, and using coal would be about one-seventh the cost,” the group said.

The think tank said using current prices, it would cost US$178.70 to purchase two barrels of oil to power the incandescent bulb. It said if coal were to be utilised to do a similar job, it would take only 396 kilograms (871lb) of the product at a cost of US$23.8, or 13 per cent of the cost of oil. The think tank also said liquefied natural gas (LNG) would be a more expensive option to coal. The researchers argue that it would require 333 litres of LNG to power the same 100-watt bulb, which would cost US$83.3, or 47 per cent of the cost of oil.

See full column http://gleaner-ja.com/gleaner/20120423/news/news2.html.

‘Using LNG instead of oil would cost roughly half the amount to burn the light bulb, and using coal would be about one-seventh the cost.’

About 871lb of coal is needed to power a 100-watt light bulb for 12 months.

 

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