KINGSTON, Jamaica – Jamaica Public Service Company
Key players in the private sector have signalled that they want to be given a role in the new arrangement for the establishment of
Phillip Paulwell addresses the media at a Jamaica House media briefing on October 3. – Norman Grindley/Chief Photographer
Minister says plan to get other players into the electricity sector still on track despite LNG deal
Arthur Hall, Senior News Editor
Energy Minister Phillip Paulwell has underscored his intention to break up the Jamaica Public Service‘s (JPS) monopoly on the transmission and distribution of electricity, even as concerns grow that the company has been given a greater control of the sector.
Several concerns have been aired since Tuesday when Paulwell announced that the Government has decided – as reported by
Kelly Tomblin, president of Jamaica Public Service Company. – Ian Allen / Photographer
Power distributor Jamaica Public Service Company (JPS) remains committed to using liquefied natural gas (LNG) for its planned 360-megawatt power plant despite Government’s expected plan to scrap the supply of gas for the project, according to the utility’s boss.
The private sector can assume the role of supplying the gas, if allowed by Government, JPS Chief Executive Officer Kelly Tomblin said Tuesday.
The company will meet with Government this week to determine its next step.
“The private sector could secure LNG if Government permits it,” Tomblin told
Kelly Tomblin, president of Jamaica Public Service Company. – Ian Allen / Photographer
Power distributor Jamaica Public Service Company (JPS) remains committed to using liquefied natural gas (LNG) for its planned 360-megawatt power plant despite Government’s expected plan to scrap the supply of gas for the project, according to the utility’s boss.
The private sector can assume the role of supplying the gas, if allowed by Government, JPS Chief Executive Officer Kelly Tomblin said Tuesday.
The company will meet with Government this week to determine its next step.
“The private sector could secure LNG if Government permits it,” Tomblin told
Concern is mounting about the medium-term effects of a reported decision by the Government to change plans for the implementation of the multi-billion dollar liquefied natural gas, LNG, project.
Some members of the small business sector feel their operations will crumble if they continue to depend exclusively on the Jamaica Public Service Company, JPS, for electricity.
Chairman of the Energy Committee of the Medium Small and Micro -sized Enterprises, MSME, Alliance, Anthony Morgan, states that his members are in a state of limbo based on the report, and need clarification from the Government.
He explains that changes need to come soon or many jobs will be lost.
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Concern is mounting about the medium-term effects of a reported decision by the Government to change plans for the implementation of the multi-billion dollar liquefied natural gas, LNG, project.
Some members of the small business sector feel their operations will crumble if they continue to depend exclusively on the Jamaica Public Service Company, JPS, for electricity.
Chairman of the Energy Committee of the Medium Small and Micro -sized Enterprises, MSME, Alliance, Anthony Morgan, states that his members are in a state of limbo based on the report, and need clarification from the Government.
He explains that changes need to come soon or many jobs will be lost.
Read more:
Nedburn Thaffe, Gleaner Writer
Plans by the Government to scrap the liquefied natural gas (LNG) project, which was part of measures to diversify the country’s energy mix and cut electricity cost, are threatening to throw the business sector into disarray.
Yesterday, president of the Private Sector Organisation of Jamaica (PSOJ), Christopher Zacca, noting that the introduction of LNG was backed by his organisation, said there was now “concern” over the report carried in The Sunday Gleaner yesterday.
As such, Zacca said, he would be calling a meeting of the PSOJ energy committee in short order to have discussions on the matter.
The Sunday Gleaner indicated that Energy Minister Phillip Paulwell is scheduled to announce next month the intention of the Government to do away with the project.
Gleaner sources say the Government is likely to revert to plans B and C, which will see the Jamaica Public Service Company (JPS) being allowed to establish the LNG infrastructure and source the gas for the multibillion-dollar plant it plans to construct in Old Harbour, St Catherine.
Trouble for sector
Opposition Spokesperson on Energy Gregory Mair, when contacted yesterday, said the report spells trouble for the country’s energy sector.
“This matter that we have been stuck with heavy fuel oil is not good news at all,” he said before chiding the Government for its handling of the project.
“I don’t know what went wrong but the bottom line is that it was going to be the private sector that was going to be funding the entire LNG project and I think they just messed up the whole thing,” Mair said.
In the meantime, yesterday, president and CEO of JPS, Kelly Tomblin, said her company intends to go ahead with plans to build its multibillion-dollar plant in Old Harbour, St Catherine, but added that the shape of the development would be dependent on how the Government now intends to participate in the project.
She added that she was looking forward to meeting with Paulwell in the coming week to discuss the way forward.
The Gleaner understands that Paulwell is currently off the island and is expected to return tomorrow.
nedburn.thaffe@gleanerjm.com
Read more: http://jamaica-gleaner.com/gleaner/20120924/lead/lead6.html
THE EDITOR, Sir:
I note with interest that the Consumer Advisory Committee on Utilities (CACU), an entity established and funded by the Office of Utilities Regulation (OUR), has come out in strong support of the Jamaica Public Service Company on maintaining its monopoly licence.
The CACU’s sudden advocacy for the retention of the monopoly would give one the impression that this is a group speaking on the behalf of Jamaican consumers. Nothing could be further from the truth. The CACU is simply a committee of the OUR set up to be the ‘consumer arm’ of the regulator.
You should recall that the CACU was merely set up by the OUR because of the absence of effective utility consumer advocacy.
While not accusing the CACU of anything unsavoury, you will understand my unease with the unit coming out in strong defence of the JPS, which, interestingly, partly funds the OUR, which, in turn, funds the CACU. There is an apparent incestuous and conflictual relationship.
It would be more palatable if the views were coming from the Consumer Affairs Commission (CAC), a creature of Parliament.
I call on the CAC to commission a research by experts on the feasibility of breaking the JPS monopoly and its implications on the cost of energy.
DENNIS MEADOWS (JP)
Opposition Senator
dennis.meadows@hotmail.com
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