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This article was written in 2008 and we are still waiting on a resolution for net billing or net metering in Jamaica.
Kingston, Jamaica — (METERING.COM) — July 8, 2008
THE EDITOR, Sir:
I THINK the time has come for the Government to put in place some kind of mechanism, except the Office of Utilities Regulation (OUR), to examine the the affairs of the Jamaica Public Service Company (JPS). I say except the OUR as I don’t think this organisation has been doing enough to protect consumers from what appears to be the company’s shenanigans in its billing system. Talk to any Jamaican in any walk of life, be they company executive or the ordinary man in the street, and you will hear the same story: despite great efforts to reduce their consumption of electricity, the bill is always higher than the one before.
My own experience bears out the collective experience of most persons. I am chairperson of a strata corporation, responsible for the common areas of a shopping centre in Liguanea, St Andrew. In an effort to reduce electricity consumption, we turned off most of the light to the common areas during the month of June, but instead of seeing a reduction from the previous bill, our current bill is now over 30 per cent above May’s bill. How come, JPS?
The exchange rate was always used by the JPS to justify monthly increases to customers, but this can no longer be the case, as the rates have remained fairly stable for some time now. So, again, how come, JPS? If the country is being asked to conserve electricity so we can reduce our dependence on foreign oil, why should all the savings end up in the coffers of a foreign company rather than in the saving accounts of people who make the sacrifice?
I am, etc.,
Winston Barrett
wdbarrett123@yahoo.com
Disaster safeguards in place, says expert…
A leading local expert in energy says that efforts to drill for oil and gas off the coast of Jamaica are scheduled to resume in 2011, and that adequate systems are in place to prevent any accidents similar to the one in the Gulf of Mexico in April.
Consultant to the Petroleum Corporation of Jamaica Dr Raymond Wright said 12 of 16 blocks have been licensed for drilling for oil offshore Jamaica. He said environmental impact assessments will be done on each drilling site, which involves collection information on Jamaica’s flora and fauna.
 WRIGHT… has said that environmental impact assessments will be done on each drilling site.
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However, he refused to be drawn on whether oil would be found in commercial quantities in Jamaican territory.
“There is oil and gas to be found in Jamaica. There are prospects for such (oil and gas) to be found in deep water, essentially the same water depths as those in the Gulf of Mexico,” he said.
Wright was the guest speaker at the annual general meeting of the Jamaica Institute of Environmental Professionals (JIEP), held at the Environmental Division of the Ministry of Land and Environment in Kingston last Wednesday.
He cited human error for the spill at BP’s Deepwater Horizon well in April, which resulted in 3.9 million barrels of oil gushing out into the ocean. Wright said it was “man-made errors in large measure” resulting in the non-maintenance of a blowout preventer which caused the spill. He noted that BP was “caught off guard” by the accident and “did not know what to do and how to respond”.
A blowout preventer is a large, specialised valve used to seal, control and monitor oil and gas wells.
It is the second largest oil spill in history behind a spill of 5.7 million gallons of oil in the Persian gulf in 1991.
He said of the 6,000 wells drilled in the Gulf of Mexico, this was first that resulted in a spill for this reason.
The threat from the Gulf spill to the Caribbean no longer exists as the sea currents took the oil northward and way from the region, Wright confirmed.
He noted that the fourth largest spill in history took place in Caribbean waters in 1979 when two tankers laden with petroleum collided off the coast of Tobago and caught fire, spilling 2.14 million barrels of oil in the sea in the process. He said although no assessment and very little clean-up was done, there was little effect as a result because “apparently a lot (of the oil) evaporated and some fell to the ocean floor in clumps”.
He said 11 wells were drilled onshore and offshore Jamaica between 1966 and 1982, and oil and gas found in nine, but not in commercial amounts.
In the election of officers Marcia Creary was re-elected unopposed as president of the JIEP. Other members of the executive include vice president Eleanor Jones, treasurer Sean Townshend and secretary Danae Vaccianna.
While some investors feel they’re still waiting for the sun to rise on the solar energy industry, it’s already high noon for some parts of the sector.
In some places in the U.S. today, solar photovoltaic, PV, technology
The most pressing problem facing the country at this time is not crime and violence, but the arrangement that we have with the Jamaica Public Service. The first chief executive officer under the new arrangement, Charles Matthews, had told us from very early that a time was coming when many Jamaicans would not be able to afford electricity, and it seems we did not believe him. How could it be otherwise, given the kind of contract that his company was able to secure with the Government of Jamaica?
How could we have agreed to an arrangement that exposed the entire economy to the kind of disaster that we are now facing, and why did it take so long for us to realise that the situation was unsustainable, and take timely steps to correct it? The Jamaica Manufacturers Association, Jamaica Hotel and Tourist Association, the Jamaica Exporters Association, and numerous other consumers have been complaining bitterly for a long time, and more recently, the Spanish ambassador to Jamaica has added his voice to the chorus. God bless Jesus.
Severe cash-flow problems
By the time the cost of electricity is factored into the prices of even the most basic goods, half of them get left at the cash register and of those people who are able to pay their own electricity bills, they can hardly buy anything else. As the disposable dollar is being taken away, businesses are losing their customers, resulting in severe cash-flow problems and as they struggle to pay their own exorbitant electricity bills, they find it extremely difficult to pay anyone else, including their staff. Even taxes become hard to pay. The domino effect takes over and before you know it, corruption sets in.
As economic activity slows down with demand, so will revenue collection and this time, enforcement will not be of much help. We must address this problem urgently. We will not meet the International Monetary Fund conditionalities if we don’t.
It is also in the JPS’s interest that this matter be resolved as soon as possible as the current arrangement is leading to a stalemate. It is quite possible to arrive at a modified contract that will allow all concerned to make a reasonable return on their investment.
I am, etc.,
VICTOR NUGENT
St Ann’s Bay
A loan programme by the National Housing Trust, designed to assist its contributors acquire and install solar water heaters, has come under fire from clean energy interests who say the programme is flawed.
But loan subscription figures from the NHT show that the solar facility is a popular programme among homeowners, surpassing even the agency’s expectations.
David Barrett of the 11-year-old Jamaica Solar Energy Association – a non-governmental organisation made up of manufacturers, retailers, marketers, installers and providers of solar energy, and academics – says the loan programme’s repayment terms are discouraging to many persons interested in accessing the facility.
“One is that the loan period is not long enough for a device that is guaranteed by the manufacturers for 25 years,” Barrett said at an energy forum in Kingston.
“You have something like a five year payback period of the loan and that’s too short,” he said.
To qualify for the loan, persons-must prove they are property owners, which Barrett cited as a disincentive, and he argued that the terms just did not fit the needs of a small family.
“The interest rate, although it is okay, is not attractive enough for persons to make that investment, so it is not doing that well,” Barrett said of the NHT programme.
Not underperforming
But the housing trust has provided data to help dispel the notion that the loan programme is underperforming.
According to the agency, 1,391 persons have received loans under the programme to date, against the NHT’s projected 1,326 loans.
NHT finances the purchase and installation of the system at interest rate of three per cent repayable within five years – plus a five per cent service charge.
The loan is capped at J$250,000.
The data provided by the trust showed that in the first year of the programme 203 persons received loans, 23 more than they had expected.
In 2007-08, some 230 persons, 77 less than projected, were successful in their applications. In 2008-09, loan approvals almost doubled to 401; and last year the numbers rose even higher to 489.
So far this year, 68 persons were successful in their loan applications.
Information gleaned from the NHT’s website confirmed that the solar water heater loan is available only to NHT contributors who possess a title for a residential property or who have enough funds in their contribution accounts to cover the cost of the system.
However, the water heater does not have to be installed on the premises being used to secure the loan.
The Jamaica Public Service Company Ltd (JPS) has erected the first of four wind turbines for its Wind Power Plant at Munro in St Elizabeth. The construction of the wind power plant comes as part of the electric utility’s fuel diversification effort, which will see a reduction in the company’s dependence on imported fuel.
The other three turbines will be erected during this month, while construction continues on the Power Plant’s substation. The project, which is costing the utility approximately J$800m, will add 3 megawatts of power to the national grid.
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President & CEO of JPS Damian Obiglio; vice-president of Generation Expansion Valentine Fagan; and manager of expansion projects, Alston Watson, discuss the ongoing work at the Munro Wind Power Plant.
A program in which people get loans from municipalities for energy efficiency upgrades and pay it back in property taxes is heating up.
| California is one of 19 states that have passed legislation for PACE participation. Above, Daniel Morabito, left, and Sal Sanchez of SolarCity install solar panels at a home in West Los Angeles. (Allen J. Schaben, Los Angeles Times / October 18, 2009 |
By Steve GelsiJuly 5, 2015
Reporting from Berkeley
Following the most recent announcements and pronouncements about Liquefied Natural Gas (LNG) has been an interesting experience for me. A “game changer” is how it is being positioned. Changing the game for whom and when? There is much talk about the significant savings to come from the LNG project. Some US$1.2 billion savings in energy costs is how the argument is being presented.
Question – over what period will these savings be realised and by whom? Government proposes to spend $1b of taxpayers’ money in the project. In what ways and over what time will this investment be recouped? Where is JPSCo in all this cheap talk?
Environmental benefits
Soon after I had resigned as permanent secretary in the Ministry of Energy and Mining, I engaged in a conversation regarding LNG. Having expressed concern in the manner it was beginning to be positioned to Jamaicans, with focus entirely on pricing, I opined that a better strategy was to spell out its environmental advantages. I was concerned that based on everything I had learnt about LNG, by the time it became available to the householders of Jamaica, light bills would perhaps not actually be reduced to the extent they were led to believe would happen.
The person with whom I was talking declared that environmental matters were of little interest to most people and that anyone not in support of LNG was a traitor to Jamaica. Despite my clarification that I was not opposed to LNG per se, but rather to the tack being taken in selling it to Jamaicans she continued to “huff ‘n puff”. Her friends seemed to have fed her the “sweet drink”. She seemed to have willingly drunk it and thereafter appointed herself “missionary spreading the gospel of LNG”.
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PAULWELL… questions the ability to deliver LNG to Jamaicans at the cost benefits being promoted.
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Paulwell is right!
Former Minister of Energy, Phillip Paulwell, has voiced some of the concerns I have regarding LNG. He questions the ability to deliver this product to Jamaicans at the cost benefits being promoted by the government. He highlights the significant infrastructural work required to deliver gas to households. Say what you may about Paulwell, the man has a brain which he uses and has been making some valid interventions.
The process and quite likely progress of delivering LNG to householders and the business community will in all probability cost much more than the U$600 million plus the price of gas that is being fed to Jamaicans. The timeline of 2012 for its implementation is likely to be a pipe dream. Wake up, we are already half-way though 2010! Skilfully, we are told that this deadline is contingent on the project remaining “on track”. Yet we have no idea if the 2012 timeline was based on fast-track, that is, with most optimistic projections, which all of us who run businesses know is tantamount to the “road to hell paved with good intentions”.
Paulwell questions the extent to which the bauxite sector, a key stakeholder in supporting the LNG initiative, is “on board”, meaning not just word-of -mouth support but a signed commitment. He also knowledgably alludes to LNG prices within the context of global oil economics. The price of LNG, though cheaper than oil, does track that of oil. When oil prices climb, so does the price of LNG. Similar to discoveries of natural gas with new technologies able to explore and exploit it are discoveries of oil reserves with new technologies to go “where no one has gone before”.
One does not get the impression that Paulwell is arguing against LNG but rather that the country be given further and better particulars regarding the project. That is also my position. Beyond party politics there must be deeper commitment to Jamaica. Some time ago a politician seemed aghast and mildly amused when I told him that my first and foremost duty was to my country, not to any minister or to any politician or party. He thought I was joking. Based on my subsequent action, he learnt that I was quite serious.
Sweet talk
Politicians need to know that service to country means more than “roundin’ up dem mouth, believing dem talking nice and soundin’ bright”. Based on the numerous snickers and in some cases outright laughter I’ve heard from media as well as those who tweet, when these people begin to pontificate in what they may believe are sweet-sounding words, very few believe them. Many laugh loudly behind these politicians’ backs, while others, especially those under 30, tweet away with expressions like LMAO (laughing my … off) and ROL (roll over laughing) when commenting about them and their words.
Jamaicans are reading through the act and the staged performances. They are looking at the actions of politicians on all levels, including the company they keep, the assets and lifestyle they boast. Many are being found wanting, not just in sincerity but in their ability to deliver on promises and to take the country forward.
Jamaicans from all walks of life are moving beyond those who aim to sound “posh to impress white people”, as one tweeter recently described the affected delivery of a politician, to just wanting to hear “the truth, the whole truth and nothing but the truth”. As it relates to LNG, give Jamaicans the unvarnished truth even if the savings on our light bills may not be the much-vaunted 30 per cent. There are other benefits to the country!
Anyway, with the intervention of the OCG to save Jamaica from any LNG mix-up, some truth will be revealed! Jamaica may be a long way off from the cheap gas being promised. In the meantime the sun shines bright and “breeze blow” sweet. Solar and wind energy anyone?
Energy ministry officials yesterday said that policies that will give private entities access to Jamaica Public Service Company’s (JPS’) distribution lines to provide its own electricity at several sites across the island, among other energy related issues, will be comprehensively addressed by September.
Senior energy engineer in the Ministry of Mining and Energy, Fitzroy Vidal told the Business Observer at the Observer headquarters in Kingston that ‘wheeling’, which concerns the development of terms and conditions that would allow a private entity to provide its own electricity at multiple geographical locations transiting JPS’ network, was currently supported but pricing still remains an issue.
“There is nothing which precludes anybody at the moment from wheeling power. The policy supports it right now,” he told journalists. “The issue is the price or the rate… we are addressing several policies now which by September would have comprehesively addressed all of these issues. In the same way we use these policies to deal with the Wigton rates. It is the electricity policy that will address wheeling and the regulatory environmnent and pricing.”
Energy Minister, James Robertson, said he viewed wheeling as an opportunity to encourage the use of renewable energy.
“All these policies will be harmonised to make sure thare are no policy conflicts,” added Vidal.
THE Office of Utilities Regulation (OUR) had set its sight on a June date to make a determination on a new regulatory mechanism that facilitate wheeling in its its corporate plan for the next three years — currently available on the regulator’s website for public comment — the OUR said it would “conduct public consultations and issue a Determination on ‘wheeling’, by June 2010”.
“(Wheeling) concerns the development of terms and conditions that would allow a private entity to provide its own electricity at multiple geographical locations transiting JPS’ network, a scenario that is contemplated by Condition 2 clauses 11 and 12 of the JPS All Island Electricity Licence,” said the regulator.
The OUR said it was responding to “interest among private entities to self-generate electricity for supplies at disparate geographical locations”, adding that the process could “only be facilitated if there is in place some kind of wheeling arrangement with JPS”.
Robertson noted that the section of the policy was being tailored to accommodate the National Water Commission, the state-run utility company that is among the largest users of electricity and which would have scores of pumping houses across the island.