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How come?

May 13, 2014 Webmaster

OUR wants JPS to say why power being cut in some communities

How comes

THE Office of Utilities Regulation (OUR) has summoned Jamaica Public Service Company (JPS) officials to a meeting today as public anger grows over the company’s decision to cut the number of hours that power is provided to some communities in an effort to combat electricity theft.

The regulator said it requested the meeting after being alerted about the matter by its Consumer Affairs Unit, which received complaints from the public, as well as JPS’s own news release on the issue yesterday.

According to the JPS, it took the decision as part of a strategy to get more persons in communities where more than 70 per cent of the power is stolen to pay for the electricity they use, and reduce the overall cost to paying customers.

“The communities to be affected in the initial phase of this curtailment strategy are Jones Town, Seaward Drive, Trench Town, Denham Town, Rema, Maxfield Avenue, Central Village, and Spanish Town Road,” JPS said, adding that it “has been working with these communities for some time, with limited success, and continues to encourage illegal users to take immediate steps to have their service regularised”.

“We have tried everything to reduce electricity theft,” the JPS release quoted Gary Barrow, the company’s senior vice-president for energy delivery.

“Our efforts have included a combination of initiatives, such as the removal of illegal ‘throw up’ lines, account audits and meter investigations, arrests in collaboration with the police, community intervention, and the installation of costly technology solutions. The company also has more than 200 employees working to reduce losses,” Barrow said.

The company, which some years ago launched a compliance campaign with the tag line ‘How Come?’, explained that in 2013 it removed more than 197,000 illegal lines, carried out more than 113,000 account audits and meter investigations, and facilitated the arrest of more than 1,200 persons for electricity theft.

It also said that it has installed more 7,600 Residential Automated Metering Infrastructure meters, but most of the potential customers targeted have not signed up for legal service.

According to the power company, its efforts to serve paying customers in communities with high levels of theft continue to be hampered by extensive damage to its equipment and ongoing power outages caused by illegal connections.

“Customers also suffer significant damage to their appliances and equipment as a result of the system overload caused by illegal connections,” JPS said.

As such, the company said that it “will make an effort to provide electricity for not less than 12 hours per day, and will remain sensitive to the safety concerns of the residents”.

The firm added that it “was also making every effort to minimise the impact on businesses, hospitals, and schools in these communities”.

In a letter to the JPS yesterday, the OUR asked for “critical information, such as the number of paying residential and commercial customers in the affected areas, and the alleged level of damage done to JPS equipment as a result of electricity theft in these communities”.

The OUR said it was treating this issue with the highest priority, given the impact on legitimate customers in these communities.

Jamaica Observer;

Electricity Government JPS News

JPS goes after $10-b annual return

April 17, 2014 Webmaster

Electricity distributor seeks up to 93% rate hike

JPS goes after $10-b annual return

JAMAICA Public Service Company (JPS) is hoping to clear US$94-million ($10.3 billion) profit a year should its proposed rate hike be approved.

The light and power company applied to the Office of Utilities Regulations (OUR) for a raft of changes to its non-fuel tariff (the rate that recovers cost associated with transmitting and distributing electricity rather than generating it).

Residential customers will see the monthly charge for network access (which up to now has been called the customer charge) increase by a range of 70 per cent to 420 per cent, depending on usage, if JPS gets its way.

What’s more, the monopoly electricity distributor hopes to raise the non-fuel, or energy charge to households by a range of 48 per cent to 93 per cent, moving from the lower end of the range to the higher end, the more electricity is used.

For commercial customers, the rates for which JPS has applied, decreases with higher usage, supposedly to promote greater use of electricity for business purposes.

On the other hand, the utility proposes a 65 per cent increase for the smallest commercial users, while enterprises can’t realise a decrease in the overall rate until they have consumed some 140,000 kilowatt-hours (kWh).

Indeed, the utility devised creative ways of encouraging more efficient consumption, such as recommending to the regulator that it altogether remove the non-fuel rate charged to large industrial customers.

That would see JPS give up just under $5 billion in revenue, which it would earn back from proposed increases to the demand charge that are applied to bills of consumers with heavy-duty electric machinery.

When factoring in the fuel charge, the rate hikes might not seem so daunting.

JPS figures that using a fuel rate of 23 US cents per kWh, the residential tariff increases, on average, by 22 per cent. Most commerical customers, or 98 per cent of them would see an average increase of 16 per cent, using the same math.

Of course, the proposed non-fuel tariff rates coupled with the fuel rates would put the cost of electricity at 45 US cents per kWh for the average household and 43 US cents per kWh for the overwhelming majority of commercial customers.

In its latest five-year tariff review application, JPS rationalised that it accumulated net profit of US$96 million, or an average of US$24 milion a year, from 2010 to 2013.

“The target profit for JPS, allowed (not guaranteed) through the revenue requirement, has never been achieved, representing an allowed return on equity (ROE) of 16 per cent that was approved in 2009, which should have resulted in a net profit of approximately US$43 million per annum”, said JPS of its profit performance over the tariff period that recently ended.

High system losses over the period factored heavily in its shortfall.

The utility company estimated that it was not allowed to recover US$111 million in fuel costs due to penalties from 2009 to 2013.

“The magnitude of the penalty varies with the price of oil and the risk exposure was amplified with the spike in the price of oil over the past two years,” said the light and distribution company. “At the end of 2013 losses, technical (8.6 per cent) and non-technical (largely theft –18.04 per cent), stood at a total of 26.64 per cent.”

Jamaica Observer;

JPS News

Compensation For NWC, JPS Consumers Spikes To $21m

June 20, 2013 jrobinson

The Office of Utilities Regulation (OUR) said it has caused J$21.15 million to be credited to the accounts of customers of the island’s two main utilities during the past year.

The money was credited to the accounts of customers of the National Water Commission (NWC) and the Jamaica Public Service Company (JPS) during the period June 2012 to May 2013, the OUR said in a statement yesterday.

The figure dwarfed the $1.19 million secured on behalf of customers during the June 2011 to May 2012 period. The OUR said the sums secured during the past year represents an increase of more than 1,600 per cent.

The OUR said the money was secured as a result of appeals done by the regulator on the behalf of customers. However, the nature of the main complaints against the companies was not obtained byWednesday Business

Electricity JPS News

JPS promises lower April bills

April 12, 2013 Webmaster

THE Jamaica Public Service (JPS) says its customers will see a five per cent decrease in their electricity bill this month, despite the continued devaluation of the Jamaican currency.

This decrease, the light and power company said last night, is due to a reduction in the cost of the fuel used to generate electricity.

“Each month, the fuel charge on electricity bills changes, depending on the cost of the oil that JPS and other power-generating companies buy to produce electricity,” JPS said.

“The fuel & IPP cost on bills for April is $24.35 per kWh, compared to the charge of $26.54 per kWh applied to March bills.

“This means that a residential customer who consistently uses 200 kWh will be paying about $400 less for his/her bill this month, compared to what he paid last month. This customer will pay $7,518 for the 200 kWh of electricity used, as against the $7,918.55 that was paid in March for the same usage,” the company said.

The JPS, however, urged customers to continue their conservation efforts as the final bill amount will depend on total electricity used.

JPS News

5% reduction on April electricity bills JPS says

April 12, 2013 Webmaster

KINGSTON, Jamaica – Despite the continued devaluation of the Jamaican dollar, Jamaica Public Service (JPS) customers will see an average of five per cent reduction in their electricity bills for April, the power company says.

The decrease, JPS says, is due to a reduction in the cost of the fuel used to generate electricity.

JPS explained that each month the fuel charge on electricity bills changes, depending on the cost of the oil used to produce electricity. The Fuel & IPP Cost on bills for April is $24.35 per kWh, compared to the charge of $26.54 per kWh applied to March bills.

This means that residential customers who consistently use 200 kWh will be paying about $400 less for his bill this month, compared to what was paid last month, JPS said in a release Friday.

This customer will pay $7,518 for the 200 kWh of electricity used, as against the $7,918.55 that was paid in March for the same usage.

JPS News

5% reduction on April electricity bills JPS says

April 12, 2013 jrobinson

The decrease, JPS says, is due to a reduction in the cost of the fuel used to generate electricity.

This means that residential customers who consistently use 200 kWh will be paying about $400 less for his bill this month, compared to what was paid last month, JPS said in a release Friday.

This customer will pay $7,518 for the 200 kWh of electricity used, as against the $7,918.55 that was paid in March for the same usage.

JPS

JPS Enters Retail Market Selling Customers Products To Cut Energy Cost

April 8, 2013 jrobinson

Kelly Tomblin officially opens the company’s first eStore, which sells devices to help monitor, protect and conserve energy.

Sacha Walters-Gregory, Staff Reporter

National power supplier, Jamaica Public Service (JPS), is relinquishing power to its customers by venturing into retail, with its new e-Store which sells devices designed to cut customers’ energy costs.

“It’s really to put knowledge and information in our customers’ hands. As you look at our products you’ll see that a lot of our products are designed to do just that,” said Kelly Tomblin, president and CEO of JPS, at the official opening of the first store last Thursday.

The power company, often dogged by customers’ complaints of high energy costs, is selling devices to save energy, protect electrical equipment and monitor electricity usage, which will ultimately allow consumers to reduce energy consumption.

Located at the power company’s Ruthven Road Customer Service Office, at 23 Ruthven Road, St Andrew, the store is one of four stores to be opened this year.

“The products really help our customers to say, this costs me that and unfortunately when you get a bill at the end of the month for activity done throughout that month there’s nothing you can do about it at that time, but we’re going to give them information along the way so they can afford that energy bill and then after that we’re going to talk about how you decrease your usage,” said Tomblin. She further explained that energy conservation needs to be more relevant to customers.

REAL CONSERVATION

“The reason we believe that these kind of products and stores are necessary is that we’re finding although we give conservation a lot of lip service we haven’t got passionate about it. I think it’s because we haven’t made it real, conservation and show a bill before and after. So we’re hoping that along with the government we can lead the way to show real decreases in energy prices,” she said.

One of the products available in the store is the Digital Energy Timer, invented locally, which can be attached to a variety of electrical devices, allowing owners to automatically turn these devices off when not in use by way of a timer or by way of the Internet. It can be applied on a small scale in homes or larger scale in businesses. According to a release from the company, “the timer, which also comes with an energy meter that measures power consumed, can be installed at distribution panels, electrical enclosures and specific zone areas and is particularly useful in determining energy usage of one section of a factory or a tenant in a rental situation. ”

Other products include LED lights which can reduce energy costs by approximately $3,000 per bulb per year; an Energy Saving Kit ($2,900 including GCT), which includes a low-flow shower head that allows you to use 0.5 less gallons of water, a timer to alert you when you’ve reached the optimal time for a shower, a sensored night light and three energy-efficient bulbs and surge protector devices.

Customers can also access the devices available at the eStore, at JPS branches islandwide.

sacha.walters@gleanerjm.com)

JPS News

JPS to

March 22, 2013 jrobinson

JAMAICA Public Service Company (JPS) will next month begin to roll out retail stores that will sell energy-saving products.

The light and power company says the initiative will kick-start a more ’empowering’ engagement with its customers going forward.

Nicolette Hind shows off some of the eStore products during a promotion.

“It’s actually the first time we are venturing into anything like this. We always supported and encouraged; what we are doing now is investing in empowerment, so we are going further,” Winsome Callum, JPS’s head of corporate communications, told Caribbean Business Report during an exclusive interview at the firm’s Ruthven Road, Kingston, outlet on Wednesday.

The new retail stores, branded “eStore”, will be located inside existing JPS customer service offices, with the first store scheduled to be opened on April 4 at the Ruthven Road outlet.

JPS will initially offer up to 40 different energy-savings products, including a variety of power efficient gadgets, timers and sensors, said the company’s director of sales and marketing, Garth McKenzie.

“Our products will fall into three major categories: equipment that will save energy, equipment that will protect your investment and equipment that will help you to understand your usages,” said McKenzie, noting that the company is targeting both the residential and corporate markets.

JPS has partnered with a number of overseas and local suppliers, including Nicorp Limited and its brand of surge protectors.

While items will be on sale, the stores will primarily focus on teaching consumers about energy consumption and how to save, McKenzie said.

“We will be consumed with looking for those things that can help people to change their habits and improve their energy efficiency. Energy efficiency has to be more than just wishing it; it needs some education, tools and gadgets,” said the sales and marketing executive.

JPS, which has 15 offices islandwide, will officially launch up to four ‘eStores’ before the end of the year, but will be offering the new services at all the locations. The company did not disclose how much money was being invested in the venture.

“We will be dressing up about two or three more locations (after Ruthven Road) by the end of the year. For the other dozen or so that won’t be dressed up, we will be branding the space to let people know that there is an eStore operation there,” McKenzie said.

JPS, for years, has had an uneasy relationship with the Jamaican public, who have become increasingly frustrated with high electricity bills and accuse the company of being rapacious. The relationship hit a low point two years ago when a wide cross-section of Jamaicans, including a government senator and an Opposition member of parliament at the time, joined a social network campaign and wore black in protest against exorbitant electricity bills from the energy provider.

McKenzie said the ‘eStore’ initiative is aimed at improving the company’s relationship with customers.

“We recognise that the value that JPS is giving is not matching up with the cost and this is an attempt to improve that value proposition,” McKenzie said.

“What people are unhappy with is the apparent lack of control that they have over their electricity bills,” he continued. “We are a business so we expect to earn money, but more importantly we need to have customers that are more empowered so that they are less disgruntled.”

JPS announced earlier this week that customers will see a 10 per cent hike in their electricity bills this month, largely due to higher fuel costs and the depreciation of the Jamaica dollar.

Against this background, Callum noted that different macroeconomic factors have made it now even more critical for Jamaicans to focus on energy savings. JPS wants to help consumers realise this goal, she said.

“People say they have tried conservation and they don’t see the results, so we want to help them to actually see results,” Callum noted.

JPS News

Customers To Get Millions In Refunds, Interest Payments From JPS

November 30, 2012 jrobinson

Callum

Nadisha Hunter,

JPS News Solar Energy
JPS Connects First Net-Billing Customer

November 26, 2012 jrobinson

The Jamaica Public Service has connected its first official net–billing customer to the grid.

The customer, Gordon Lawrence of a Corporate Area address, was officially commissioned after rigorous preparation and testing of the solar system at his home, supplied and installed by Alternative Power Sources.

Any excess energy from the solar system, not used by Lawrence, will be sold to JPS.

Lawrence was one of 11 JPS customers who received net-billing licences from Minister of Science, Technology, Energy and Mining Phillip Paulwell earlier this year. Net-billing customers will be paid the avoided cost of generation for the electricity JPS purchases, as well as up to a 15 per cent premium on that price.

JPS President and CEO Kelly Tomblin, in commenting on the landmark event, noted that the company was pleased to fulfil its mandate to accommodate customers on the grid, as part of the development of the new energy landscape in the island.

Nothing new

For his part, Lawrence said he was not new to generating his own power supply as he installed his system four years ago.

He said the process of getting on to the JPS grid – from application, to obtaining a licence, to dealing with the Office of Utilities Regulation, JPS, Alternative Power Sources and the government electrical inspector – was relatively smooth.

“The system is superior to that of a standby generator, as the changeover is seamless and silent,” he added. “It is also better than a generator in terms of cost as generators require fuel after purchase of the equipment.”

Lawrence’s current system produces roughly 10 to 15 kWh per day on average, with the surprise being that the so-called winter months from October to February have proven to be the most efficient months in terms of energy output.

JPS project manager for net billing, Volton Campbell, also recognised the advantage of Lawrence’s system.

“Unlike some solar systems that will not operate once there is no sunlight, Mr Lawrence’s system can operate when it’s cloudy, as well as at night,” Campbell said. “This is because his system also has backup batteries which are charged by the solar system.”

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