‘Strange’

 

THE Jamaica Public Service (JPS) has expressed ‘surprise’ at Tuesday’s passing of a resolution by the Kingston and St Andrew Corporation that seeks to have Corporate Area residents pay for the repair and replacement of street lights.

According to the light and power company, a resolution of that nature warrants consultations with the company, as a number of issues would have to be resolved before any such change could be made.

“I find it strange that they would move a resolution without us doing the research and getting back to them. We don’t have an adversarial relationship, we are accessible to all the councillors, they have our cell numbers and we respond to all their complaints, including street lights,” Jennifer McKurdy, JPS parish manager for Kingston and St Andrew North, told the Jamaica Observer on Wednesday.

McKurdy said that both he and the manager for JPS Kingston and St Andrew South attended last week’s KSAC Roads and Works Committee meeting, and were asked if it would be possible for private citizens to fix their own street lights. She said that they had promised to research the issue and respond but, before they were able to do so, the resolution was passed.

Meanwhile, JPS communications boss Winsome Callum told the Observer Monday night that, currently, there is no restriction on people who live some distance away from the main, or where electricity is unavailable, to go into the JPS office and work out an arrangement.

The process is usually for a certified contractor to install a street light at their home or in their community, and have it passed by the JPS. The owner of the property then becomes responsible for the bills and the maintenance of that light. However, she said that private citizens being responsible for the service or repair of streets lights in areas for which the KSAC is responsible is a totally different matter, requiring intense discussions on how it can be approached.

The resolution is one of the most controversial to be passed by the current KSAC administration, led by Mayor Angela Brown Burke. It was opposed by minority Jamaica Labour Party (JLP) members of the council, as well as three People’s National Party (PNP) councillors who abstained from voting. The resolution was eventually passed by a 16-10 majority.

The Observer reported Tuesday that PNP councillor Ian Telfer (Hughenden) had tabled a motion in the Council, seeking to have the public contribute more to maintaining street lights by paying for the repairs.

This would be in addition to some $3.4 billion from recently increased property tax, which generates revenue the Government and the councils use to pay for the street lights and garbage collection. However, despite the heavy increase in property taxes in April, both services continue to suffer from underfunding.

In his motion, Telfer said that the KSAC has been having “major challenges” in keeping the street lights in the Corporate Area operational. He noted that some private citizens, on occasions, have paid for repairs and replaced defective lights with “lights of their own”, but that these were eventually removed by the JPS.

He admitted that neither the KSAC nor the JPS can allow private citizens to add street lights to the grid as this would create “greater problems of maintenance and accountability, in addition to increasing operational costs”, but insisted in his motion that the KSAC should “mandate” the JPS to accept payments from private citizens.

Telfer said that there were instances where citizens have paid to repair or replace street lights, but the JPS said that the practice is illegal.

JLP councillor Vernon McLeod (Havendale) said that the JPS should find cash flow “to fund its business if it wants to stay in business”.

“The KSAC should penalise the JPS, and don’t pay them if they don’t provide the service,” McLeod said.

Another JLP councillor, Duane Smith (Chancery Hall), said that the resolution would set a dangerous precedent, and could open the floodgates for citizens to be asked to pay for other public services for which they are already taxed.

“It is quite obvious that the councillor is trying to remove the burden and responsibility of maintaining the street lights from the KSAC, and placing them squarely on the shoulders of the public. And what is most unfortunate about it is that it seems to have the backing of members who should know better,” Smith said.

Councillor Delroy Williams (JLP, Seivright Gardens) said that support of the resolution would be a reward for negligence on the part of the JPS. He said the KSAC should move aggressively to get the JPS to carry out its responsibilities.

His PNP colleague, Councillor Karl Blake (Greenwich Town), who seconded the motion, said that it could not be illegal for citizens to help to secure their communities. But, PNP Councillor Eugene Kelly (Whitfield Town), who abstained, said that while the motion had a good intention, citizens were already paying property tax, out of which the JPS was paid by the KSAC for the street lights.

“The JPS is paid hundreds of millions of dollars for the street lights, and if they don’t meet their obligation they should be sued,” Kelly said.

Another PNP councillor, Kevin Taylor (Duhaney Park), who also abstained, said that if citizens were to pay for the repair of street lights, they should be able to have the payment deducted from their property tax.

Jamaica Observer;

‘Strange’

 

THE Jamaica Public Service (JPS) has expressed ‘surprise’ at Tuesday’s passing of a resolution by the Kingston and St Andrew Corporation that seeks to have Corporate Area residents pay for the repair and replacement of street lights.

According to the light and power company, a resolution of that nature warrants consultations with the company, as a number of issues would have to be resolved before any such change could be made.

“I find it strange that they would move a resolution without us doing the research and getting back to them. We don’t have an adversarial relationship, we are accessible to all the councillors, they have our cell numbers and we respond to all their complaints, including street lights,” Jennifer McKurdy, JPS parish manager for Kingston and St Andrew North, told the Jamaica Observer on Wednesday.

McKurdy said that both he and the manager for JPS Kingston and St Andrew South attended last week’s KSAC Roads and Works Committee meeting, and were asked if it would be possible for private citizens to fix their own street lights. She said that they had promised to research the issue and respond but, before they were able to do so, the resolution was passed.

Meanwhile, JPS communications boss Winsome Callum told the Observer Monday night that, currently, there is no restriction on people who live some distance away from the main, or where electricity is unavailable, to go into the JPS office and work out an arrangement.

The process is usually for a certified contractor to install a street light at their home or in their community, and have it passed by the JPS. The owner of the property then becomes responsible for the bills and the maintenance of that light. However, she said that private citizens being responsible for the service or repair of streets lights in areas for which the KSAC is responsible is a totally different matter, requiring intense discussions on how it can be approached.

The resolution is one of the most controversial to be passed by the current KSAC administration, led by Mayor Angela Brown Burke. It was opposed by minority Jamaica Labour Party (JLP) members of the council, as well as three People’s National Party (PNP) councillors who abstained from voting. The resolution was eventually passed by a 16-10 majority.

The Observer reported Tuesday that PNP councillor Ian Telfer (Hughenden) had tabled a motion in the Council, seeking to have the public contribute more to maintaining street lights by paying for the repairs.

This would be in addition to some $3.4 billion from recently increased property tax, which generates revenue the Government and the councils use to pay for the street lights and garbage collection. However, despite the heavy increase in property taxes in April, both services continue to suffer from underfunding.

In his motion, Telfer said that the KSAC has been having “major challenges” in keeping the street lights in the Corporate Area operational. He noted that some private citizens, on occasions, have paid for repairs and replaced defective lights with “lights of their own”, but that these were eventually removed by the JPS.

He admitted that neither the KSAC nor the JPS can allow private citizens to add street lights to the grid as this would create “greater problems of maintenance and accountability, in addition to increasing operational costs”, but insisted in his motion that the KSAC should “mandate” the JPS to accept payments from private citizens.

Telfer said that there were instances where citizens have paid to repair or replace street lights, but the JPS said that the practice is illegal.

JLP councillor Vernon McLeod (Havendale) said that the JPS should find cash flow “to fund its business if it wants to stay in business”.

“The KSAC should penalise the JPS, and don’t pay them if they don’t provide the service,” McLeod said.

Another JLP councillor, Duane Smith (Chancery Hall), said that the resolution would set a dangerous precedent, and could open the floodgates for citizens to be asked to pay for other public services for which they are already taxed.

“It is quite obvious that the councillor is trying to remove the burden and responsibility of maintaining the street lights from the KSAC, and placing them squarely on the shoulders of the public. And what is most unfortunate about it is that it seems to have the backing of members who should know better,” Smith said.

Councillor Delroy Williams (JLP, Seivright Gardens) said that support of the resolution would be a reward for negligence on the part of the JPS. He said the KSAC should move aggressively to get the JPS to carry out its responsibilities.

His PNP colleague, Councillor Karl Blake (Greenwich Town), who seconded the motion, said that it could not be illegal for citizens to help to secure their communities. But, PNP Councillor Eugene Kelly (Whitfield Town), who abstained, said that while the motion had a good intention, citizens were already paying property tax, out of which the JPS was paid by the KSAC for the street lights.

“The JPS is paid hundreds of millions of dollars for the street lights, and if they don’t meet their obligation they should be sued,” Kelly said.

Another PNP councillor, Kevin Taylor (Duhaney Park), who also abstained, said that if citizens were to pay for the repair of street lights, they should be able to have the payment deducted from their property tax.

Jamaica Observer;

KELLY Tomblin yesterday reiterated the dire financial state of the Jamaica Public Service Company (JPS), and expressed disappointment that two State-owned sugar companies in Clarendon and Westmoreland allowed residents of neighbouring communities to steal electricity amounting to more than $100 million.

“We have about 230 people, we are spending a lot of money each year working on preventing theft. Those people are out in the community, serving my customers, helping to figure out how to get smaller payment frameworks and doing other customer service, improving reliability,” Tomblin told a news conference at the JPS head office in New Kingston.

Jamaica Public Service Company President and CEO Kelly Tomblin addressing a news conference at the JPS head office in New Kingston yesterday.

“What happens when theft of service occurs. For JPS, it may very well be the death knell. Last year, we were fined by the OUR $30 million, that’s two-and-a-half times our total profit and we again submit that there is no business in Jamaica that can lose two to three million dollars a month and still be viable,” she said, adding that the company is facing bankruptcy as it has broken several covenants with its lenders.

“So for us it has reached a very critical point. This has led to us being in breach of our financial covenants. We have been in breach since last year and we continue to be in breach. What that means is that there is a covenant in our loan agreement with our lenders that said we would maintain a specific EBITDA (earnings before interest, taxes, depreciation and amortisation) to debt ratio and we haven’t met that, and we haven’t met it for a year,” Tomblin said.

She said that the company’s lenders have been granting it waivers, but JPS is not earning enough to meet its debts.

“That is a violation of our agreement, and now we have a lender that has not given us a waiver,” she said.

“So in the US, we call it a financial cliff; we call it a precipice here, but the fact remains that JPS cannot be viable in the current framework.”

Tomblin spoke to the electricity theft issue affecting the sugar estates in an interview with the Jamaica Observer after the news conference.

“It shocks the conscience,” she said, “because if you drive around right now you see it [electricity theft] everywhere. We [Jamaicans] have become very immune to it and I think that is what has gone on here.”

Yesterday’s Observer lead story reported Agriculture Minister Roger Clarke as saying that the Government will have to fork out $200 million to remove illegal connections set up at the sugar plantations.

Disconnecting the illegal connections, Clarke said, was the “only outstanding matter” in negotiations with the new owners of the factories, Pan Caribbean Sugar Company, to invest in a US$100-million sugar refinery.

For years, residents in neighbouring communities were allowed free access to electricity and irrigation water which cost the sugar company $100 million in additional costs annually. The $200 million is being sought to pay for a regularisation programme for the affected communities.

Yesterday, Tomblin did not say whether the regularisation process had started, or if the Government had paid any portion of the regularisation costs.

She, however, bemoaned the debt the Government had incurred for electricity, and said the State will have to pay up if the JPS is to remain viable.

“We certainly have difficulty collecting from the Government, and of course the Government has had its woes,” Tomblin said. “But remember, we bill the Government in Jamaican dollars and we have to pay most of our suppliers, including Petrojam, in US dollars. So the longer they take to pay us, the more detrimental it is to JPS.

“So we really do need to get everyone to be current, and for the Government to repay JPS what it owes us,” she said.

In the meantime, Tomblin said that new measures are to be implemented to detect electricity theft by major organisations which, she said, is harder to detect than those set up by ordinary citizens.

Jamaica Public Service Company President and CEO Kelly Tomblin addressing a news conference at the JPS head office in New Kingston yesterday.

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JAMAICA Public Service‘s (JPS) customers may soon be able to pay their bills in advance through a pre-paid system that will be implemented next year.

“Jamaicans already have a pre-paid psychology, said Kelly Tomblin, president and chief executive officer of JPS.

JPS president and CEO Kelly Tomblin says a pre-paid meter would help its customers control how much they spend on electricity.

Most people in Jamaica are used to paying for their cell phones with pre-paid cards.

“We believe the system can be easily managed and it gives customers a way to mange their expenses” she said.

Pre-paid metres will form an integral part of the company‘s program to help reduce losses and is a key strategic initiative in 2013, the company said.

A programme to persuade customers to take the new metres will be launched early next year.

So far, the project’s team has conducted research and the programme is in its planning stages, JPS said.

Preliminary feedback from customers is that it is something they would appreciate, said Winsome Callum, JPS’s head of corporate communications.

Some of the company’s customers don’t just pay their bills on time, they pay in advance,” she said. “As soon as they get their income, they pay.”

Tomblin reckons the system will be economically viable.

JPS has already installed 6,000 Korean-built metres that have a pre-paid capacity, but the software to support the system is not yet in place.

Elsewhere in the world, “where these systems have been installed, there is a high level of customer satisfaction. It gives the customer control,” JPS said. Customers know how much they can afford to spend and they regulate their use.

The system would offer an alternative to disconnection for customers who have trouble paying their bills.

Currently, the only tool the company has with people who don’t pay on time is to cut them off, since it can’t charge interest or late fees.

“Something may come up. And for some reason, a customer may run into problems and have their light cut off,” Tomblin said. “Paying in advance will spare our customers.”

But the metres are unlikely to address a bigger problem for the company, the 25 per cent system loss due to theft. Many power users have never paid for their electricity in their lives, Tomblin told the Jamaica Observer‘s Monday Exchange.

Read more:

JAMAICA Public Service‘s (JPS) customers may soon be able to pay their bills in advance through a pre-paid system that will be implemented next year.

“Jamaicans already have a pre-paid psychology, said Kelly Tomblin, president and chief executive officer of JPS.

JPS president and CEO Kelly Tomblin says a pre-paid meter would help its customers control how much they spend on electricity.

Most people in Jamaica are used to paying for their cell phones with pre-paid cards.

“We believe the system can be easily managed and it gives customers a way to mange their expenses” she said.

Pre-paid metres will form an integral part of the company‘s program to help reduce losses and is a key strategic initiative in 2013, the company said.

A programme to persuade customers to take the new metres will be launched early next year.

So far, the project’s team has conducted research and the programme is in its planning stages, JPS said.

Preliminary feedback from customers is that it is something they would appreciate, said Winsome Callum, JPS’s head of corporate communications.

Some of the company’s customers don’t just pay their bills on time, they pay in advance,” she said. “As soon as they get their income, they pay.”

Tomblin reckons the system will be economically viable.

JPS has already installed 6,000 Korean-built metres that have a pre-paid capacity, but the software to support the system is not yet in place.

Elsewhere in the world, “where these systems have been installed, there is a high level of customer satisfaction. It gives the customer control,” JPS said. Customers know how much they can afford to spend and they regulate their use.

The system would offer an alternative to disconnection for customers who have trouble paying their bills.

Currently, the only tool the company has with people who don’t pay on time is to cut them off, since it can’t charge interest or late fees.

“Something may come up. And for some reason, a customer may run into problems and have their light cut off,” Tomblin said. “Paying in advance will spare our customers.”

But the metres are unlikely to address a bigger problem for the company, the 25 per cent system loss due to theft. Many power users have never paid for their electricity in their lives, Tomblin told the Jamaica Observer‘s Monday Exchange.

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THE Jamaica Public Service (JPS) says it will be rolling out an education campaign as it seeks to partner with communities to manage overhanging vegetation around utility poles.

President of JPS Kelly Tomblin said while the company has always had a vegetation management programme, it will be stepping up its efforts to deal with the problem, which contributed in part to the more than 6,000 poles that fell during the passage of Hurricane Sandy last month.

TOMBLIN… Vegetation management requires a lot of community interaction

“When I first came I contacted some experts on vegetation management to come down to Jamaica and work with our team and start a new vegetation programme a month before the hurricane,” Tomblin told editors and reporters at the Jamaica Observer weekly Monday Exchange held at the newspaper’s head office in Kingston.

Vegetation management, she said, is not only about removing the overhanging trees and shrubs but being able to stump their regrowth through the use of chemicals.

“We have recently made some changes in how we do vegetation control,” Tomblin said. She said vegetation management is particularly challenging in Jamaica because of the remote areas and how plants such as bamboo grow, and as such there is need for another approach.

“Vegetation management requires a lot of community interaction… and so one of the things we hope to have more is community partnership in vegetation control both on individual owner perspective and community,” Tomblin said.

Speaking to the power company‘s handling of the restoration programme across the island in the aftermath of the category one storm, Tomblin said there is a limitation to the appropriate resources the company has at its disposal.

“We all wish we had unlimited resources, and if we did, instead of 80 crews we would have trained and ready to go 200 crews, but that would mean an even greater upward pressure on electric prices because most time we are not having an outage,” Tomblin said.

Given the challenges, Tomblin said the company did well in restoring power to 90 per cent of its customers in four days.

“From my more than two decades being involved in storm restoration, having 90 per cent of customers back in power after a hurricane is a very good solid performance,” she said.

“To get 90 per cent of the people back in four days, I don’t know how much you can improve on that,” she added, noting that there are ways to make significant improvement on the remaining 10 per cent.

She said there is a disconnect in the understanding of what the JPS teams really do go through and what is required.

“If I tell a guy from the United States to take a pole and walk down two miles they would look at me like I have three heads, because they are not going to put that on their back and walk down the hill, but our guys have to do that,” she said.

To date, the JPS said only 2,000 of its 480,000 customers are still without power. For these customers, Tomblin said the workers are having problems accessing the areas because of landslide and other challenges.

The preliminary estimate for the restoration works is said to be in the region of US$7 million, and is expected to climb.

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A lockdown of the local petroleum sector is looming as furious industry stakeholders intensify calls for Energy Minister Phillip Paulwell to intervene and plug gaping holes which they say are making their survival increasingly difficult.

The peeved stakeholders include petroleum tanker drivers, haulage contractors and service station operators, all of whom point fingers at petroleum marketing companies, which they claim are walking away with huge profits while the rest of the sector struggles as a result of policies they have imposed.

 

It is against this background that the stakeholders are joining forces to lobby the Government to introduce legislation which they feel will create a level playing field.

Their concerns have heightened in the wake of recent moves by one marketing company to terminate the contracts of several service stations which reportedly failed to meet performance targets it had set.

The threats of closure sent shockwaves through the petroleum retail sector and resulted in several meetings involving the Jamaica Gasolene Retailers Association (JGRA). Out of those discussions came plans to implement a wide range of cost-cutting measures in order for them to remain afloat. The termination of the jobs of scores of pump attendants and other workers was among them.

It is a last resort for JGRA President Trevor Heaven, but he said it will be inevitable if the Government fails to address serious anomalies relating to the policies of the marketing companies.

“We don’t want to raise prices; in fact, we can’t. And we don’t want to dislocate our employees, but we need equitable margins to take into account factors such as shrinkage (evaporation of a portion of the product),” he told the Jamaica Observer.

Shrinkage, according to one industry expert, normally occurs in the transportation of fuel from one location to another, or in the process of filling up at service stations.

Another issue with which the sector grapples, added Heaven, was that service station operators who lease properties from marketing companies, and who seek to diversify their income, are faced with strong resistance.

“The marketers should allow retailers to use the facilities to explore other income-generating activities. The moment you decide to go into a tyre sale venture or any other service on the property, you are told how much you will need to pay,” Heaven said, describing the lease agreements as onerous.

“We have never seen this level of fallout before, and it speaks to the fact that the business itself is becoming more and more challenging,” said Heaven, who told the Observer that he would be meeting with other aggrieved stakeholders before approaching the energy minister.

For Corporate Area service station operator Dwight Moore, the blame lays at the feet of successive political administrations which have failed to nip the problem in the bud by introducing legislation to level the playing field.

“We want a win-win situation, because we understand that they (the marketing companies) made an investment when they decided to come to Jamaica, and we fully appreciate the need for them to capitalise on that investment. However, the existing legislation favours them, as they are able to set margins without sharing any of their benefits with service station operators. We get the product at near commercial rates and then have to resell, despite us bearing the brunt of costs associated with product shrinkage, security, etc. These costs erode what you make on the product. What we need is equity,” Moore declared.

Despite several efforts, the Observer was unable to speak with representatives of two of the major marketing companies operating in the country.

Energy Minister Paulwell was also unavailable as he was said to be off the island. However, a senior official of the Ministry of Science, Technology, Energy, and Mining acknowledged that the ministry was aware of the charges against the marketing companies.

According to the officer, a comprehensive review of the local petroleum retail sector has been completed, and will lead to a raft of changes relating to issues such as safety, transparency and competitiveness.

The technocrat explained that the measures will also result in the creation of a level playing field for all the stakeholders, including haulage contractors, tanker drivers and the petroleum marketing companies. The Observer was also told that the proposed measures, some of which are likely to be legislated, are in keeping with the overall thrust to modernise the local petroleum sector.

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