The country
Energy Phillip Paulwell says he’s confident of
THE EDITOR, Sir:
This is probably the shortest letter you have ever received. I just want to say that since the passage of Hurricane Ivan, the ‘service charge‘ on my electricity bill has moved from $828 per year to $3870. I am writing this letter on back-up power because the electricity is out. JPS, I only have two printable words: poor maintenance.
P. FOSTER
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THE start date for the modernisation of Jamaica’s oil refinery, Petrojam, appears to have been brought to the front of the queue of Venezuelan expansion projects.
Already delayed by five years, the project failed to take off due to the inability of the owners
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
Energy Minister Phillip Paulwell says the government will be moving to adjust the rates private individuals are paid for electricity they sell to the grid.
At present the Jamaica Public Service Company, JPS buys electricity for 10-U.S. cents per kilowatt hour but charges consumers 40-U.S. cents per hour.
The minister did not say how and when the rate adjustment will be made.
Mr Paulwell also says the government’s energy bill will be reduced shortly after changes to several thousand air conditioning units and light bulbs.
Mr Paulwell told an energy fair today that 5-thousand A.C. units and one hundred thousand bulbs will be changed in several government buildings.
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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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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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In a move to decentralise its operations the Jamaica Public Service Company, JPS, has announced the appointment of