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.

Read more:

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.

 

http://jamaica-gleaner.com/gleaner/20120423/lead/lead2.html

 

JAMAICA HAS once again approached its Caribbean neighbour, Trinidad and Tobago, to secure a supply of liquefied natural gas (LNG)

Energy Minister Phillip Paulwell said the advances were made by the new Government as early as February. He said he has had discussions with his Trinidad and Tobago counterpart on the issue.

“We are trying to see if there can be an agreement at this stage in relation to the supply of LNG,” Paulwell told

 

 

 

The following question was asked recently by a concerned citizen.

How many litres of oil would be needed to run a 100-watt electric bulb consistently for one year? Similarly, how many kg of coal to accomplish the same thing?

On the surface of it, the answer could be calculated by any reasonably smart high-school physics student. We suspect however, given the source of the question, what was being sought was a deeper, more fundamental answer that goes to the core of the energy crisis that Jamaica now faces.

So, first, here’s the easy part. A barrel of oil, often referred to as barrel of oil equivalent (BOE) contains approximately 1.7 MWh of energy. Generation plants in the current JPS system extract approximately 35 per cent of the energy content of a barrel of oil (measured by the average heat rate) and convert it into electricity.

Transmission and distribution losses take away another 23 per cent of this energy before it gets to the customer’s premises. The light bulb ends up receiving 27 per cent (0.46 MWh) of the energy from the barrel of oil. Burning a 100W incandescent bulb for 24 hours a day and 365 days a year (not advisable) requires 876 KWh of energy (roughly equivalent to half-barrel of oil).

Very inefficient

Incidentally, the typical 100W incandescent bulb is very inefficient, converting less than 20 per cent of the energy consumed into visible light, the rest being dissipated as heat so that the amount of useful energy consumed from the barrel of oil in this scenario is really only five per cent.

Nevertheless, the initial answer to our question is that given the current inefficiencies in the electricity production and distribution system, it requires just about two barrels of oil to keep the light bulb burning continuously for a year.

This calculation holds whether the fuel source is oil, gas or coal. It will take 396 kg of coal and 333 litres of LNG to keep the light bulb burning for one year.

Using nominal trading prices for each fuel type indicates the relative costs. So, hypothetically speaking, all other things being equal (of course they’re not but the simplification suits the exercise), using LNG instead of oil would cost roughly half the amount to burn the light bulb, and using coal would be about 1/7th the cost.

The earlier analysis indicates that regardless of fuel, the Jamaican electricity production and distribution system only delivers approximately 27 per cent of the fuel purchased to the end consumer.

Consumers with poor energy conservation practices such as continuously burning incandescent bulbs, or inefficient building air-conditioning systems, contribute further to this energy waste. Jamaica’s oil bill in 2010 was 122 per cent of all export earnings.

A significant percentage of this oil bill is used to produce electricity and, on average, we waste 73 per cent of this costly commodity in delivering electricity to consumers.

What is even more perverse about this situation is the well-known fuel pass-through clause in the electricity tariff structure that requires the consumer to pay for the cost of fuel, regardless of how inefficient the procurement or conversion processes become. Is there a better way? Is there a model of electricity production and delivery that can begin to seriously impact on this seemingly perpetual, but clearly unsustainable situation.

Fundamental conversation needed

While the predominant local energy debates about LNG versus coal, and fuel diversity, are important issues; getting Jamaican industry to a competitive 10-15 US cents/KWh will require a more fundamental conversation about the structure of the industry and the way that usable energy is extracted from a barrel of oil or a tonne of coal.

We believe that there is a different industry model that could potentially suit small island states like Jamaica.

A model that takes advantage of new- generation technologies and more efficient industrial structures capable of delivering electricity at lower cost. A model that can extract more usable energy from the barrel of oil, the litre of LNG or the kg of coal to burn the light bulb while running the air conditioning and the water heater.

We believe such a model of electricity sector reform could potentially impact many of the prevailing issues and concerns currently being contemplated, such as:

  • providing more competitive industrial and commercial rates in the medium – long term
  • increasing the opportunities for domestic private-sector investment/participation in the electricity sector
  • providing increased fuel diversity as a natural consequence of investor-determined choices and risks
  • considerably reducing transmission/ distribution losses as a result of a more balanced distribution of supply and demand
  • creating practical opportunities for increasing the share of renewables in the supply of electricity.

Space doesn’t permit a more detailed examination of this conceptual model in this article. Suffice to say that it will require a deep commitment to the national interest and the willing participation of all stakeholders in the electricity sector, including the JPS, the OUR and GOJ, the local private sector, academia and consumers.

All have a role to play in helping to return sanity to a very troubled sector. We will complete the presentation and examination of this conceptual model in subsequent papers.

Contributed by the Energy Think Tank, University of the West Indies, Mona

Fuel

 

The government, in the next two weeks, will launch its energy efficiency and conservation programme, aimed at saving more that $2 billion per year in energy costs.

This was announced by Minister of Science, Technology, Energy and Mining, Hon. Phillip Paulwell on April 19, 2012 as he addressed the opening of the Jamaica Power Summit 2012 at the Jamaica Pegasus Hotel in New Kingston.

To be financed by the Inter-American Development Bank (IDB), Mr. Paulwell said the programme objective will be realised through the design and implementation of cost saving measures.