JPS ripping us off again?
April 17, 2013
Roger Chang

In the recent JPS Annual Tariff Adjustment Page 19 Technical Losses states:

“The T&D system configuration and voltage levels are critical to determining the actual
level of technical losses. Further reduction in technical losses will typically be as a
result of capital intensive programmes such as building more sub-stations or
“”increasing”” the voltage level at which we transmit and distribute electricity.”

Increasing the voltage WILL increase your electricity consumption and in effect your JPS
bill!

Most other countries practice something called “Conservation Voltage Reduction (CVR)” in
an attempt to save energy…. decrease voltage. (thanks Stanley)

The JPS nominal voltage should be 110vac or 220vac for rate 10 customers (residential)

I typically measure between 115vac to 125vac and many days close to 128vac, or 4.5% to
16.3% over nominal voltage.

Ever wonder why your motors and electrical equipment run hotter or burn up quicker?
Overvoltage?

Studies have shown 1% voltage change can yield a 0.6% change in consumption, or 2.7% to
9.8% increase in your JPS bill!

Is this there the 10% technical loss reduction will come from?
Technical losses is said to be about $1,500 million annually

Building a sub-station will cost money.
There is no cost to increase the voltage, but is an easy “hidden” way to extract more

money from every customer.

Where is the OUR?
Why is the OUR not regulating this?
Minister Paulwell?

more to come…

THE JAMAICA PUBLIC SERVICE CO. LTD. ANNUAL TARIFF ADJUSTMENT SUBMISSION FOR 2013
http://www.our.org.jm/images/stories/content/Electricity/Tariff/JPS%202013%20Annual%
20Tariff%20Submission.pdf

http://www.myjpsco.com/_pdfs/Interconnection_Technical_Guideline.pdf

http://www.jsea.org.jm/docs/DG%20Interconnection%20Guidelines%20-%20JPS%
20Co_July09_Draft%20v3.0_final.pdf

Jamaica Public Service Company will not bid on the 115 MW renewable energy project, says energy minister Phillip Paulwell in an advisory meant to allay fears that prospective investors would have to compete with the monopoly power distributor.

Additionally, the one per cent bond imposed on bidders will now be applied after the selection of qualified bids.

The adjustment followed complaints from the Jamaica Solar Energy Association that the upfront proposal costs were too high – ranging from just under US$1 million to as high as US$2 million, according association president Roger Chang.

The bid deadline has also been extended two months to June 2013.

More than 80 investors have already indicated interest in the project. They complained at a mid-January meeting with the OUR that, were JPS to participate in the project, the power utility, which controls the national grid, could easily under-bid them.

business@gleanerjm.com

Read more:

Petrojam is facing increased pressure to make public its formula for calculating the price of petroleum products.

The Micro, Small and Medium Sized Enterprise, MSME Alliance, says for many of its members, especially taxi drivers, the impact has been devastating and concerns are mounting in the face of persistent questions about the pricing mechanism used by Petrojam.

Their call follows several from Opposition Spokesman on Energy, Gregory Mair who has been strident in his criticisms of the pricing mechanism, labelling it as deeply flawed.

However, despite calls for Petrojam to open up to public scrutiny it has steadfastly remained silent.

President of the Jamaica Solar Energy Association and member of the MSME Alliance, Roger Chang says the information should be made available to dispell doubts that the public is being cheated.

Mr. Chang says he’s now awaiting the outcome of a request for the pricing formula through the Access to Information Act.

He told our newscentre that he decided to go that route after failing to get a satisfactory response from Petrojam’s General Manager, Winston Watson:

Mr. Chang says the MSME Alliance is also questioning whether the concerns raised in two audit reports of Petrojam in 2008 and 2009 have been addressed.

He says among other things the audits said Petrojam’s pricing mechanism is being administered with limited oversight.

The audit pointed out that with Petrojam being one of the market participants it was improper for it to administer the pricing system.

Mr. Chang says the reports also outline a lack of transparency and inefficiencies at the refinery which results in the cost being trickled down to the consumer at the pumps and in their electricity bills.

Yesterday it was announced that motorists would have to pay more for petrol for a ninth straight week as Petrojam hiked prices to just below record levels.

http://rjrnewsonline.com/news/local/petrojam-pressured-over-petroleum-pricing-formula

The Petrojam oil refinery at Marcus Garvey Drive in Kingston - File
The Petrojam oil refinery at Marcus Garvey Drive in Kingston – File

In the wake of concerns about the rising cost of petrol, Petrojam, the oil refinery jointly owned by the Jamaican government and

Chad Bryan, Gleaner Writer

As the current exchange between the Petroleum Corporation of Jamaica (Petrojam) and the Micro, Small and Medium-Sized Enterprise (MSME) Alliance continues, fuel prices keep going up. The MSME is the latest organisation to complain publicly about high gas prices. MSME member and Jamaica Solar Energy Association President Roger Chang, is asking that Petrojam make its pricing mechanism public.

Rising gas prices are a consistent feature of Jamaica, in the past punctuated by riots as government taxes caused a sudden spike, which aroused public ire.

One of those riots was in January 1979 when, under the Michael Manley-led People’s National Party (PNP) government, fuel prices increased from $3 to $3.20 a gallon for premium gasolene and from $2.85 to $ 3.10 a gallon for regular.

In January 1985, yet another year started with increased fuel prices ande riots, this time under the Edward Seaga-led Jamaica Labour Party (JLP) government. Five people were killed in the violence that ensued after a $1.91 increase, prices moving from $8.99 a gallon to $10.90 a gallon for premium gasolene.

In April 1999, with the PNP back in control under the leadership of PJ Patterson, demonstrators took to the streets to protest a hike in fuel tax from $1.55 a gallon to $2.

On Friday, Petrojam’s website listed E10 (87) gasolene at $107.5228 and E10 (90) at $109.1787, prices to which dealers would add their margins.

The increase in fuel prices is an all too common occurrence which motorists continue to grapple with at the pumps as, since recently, the cost of fuel went up by $2.00 to cost $107.52 for a litre of E-10 87, $109.17 for E-10 90 gasolene and automotive diesel, which has gone up by $1.11 to sell for $ 107.29 per litre. The earliest figures on the website were $27.4276 for unleaded 87 grade fuel in February 2004, with unleaded 90 going for $28.8704 at that time.

Cheap petrol price?

According to

 

JAMAICANS no longer have a good reason to complain about high electricity bills, says Roger Chang, president of the Jamaica Solar Energy Association. A cheaper alternative is available.

“There is no valid reason for complaining of high electricity cost. Because there is an option and that option is solar panel systems. It will produce electricity at a ‘levelised’ cost of electricity of just around US10 cents per Kilowatt hour (kWh),” Chang told the Rotary Club of Spanish Town at the Police Officers Club in St Andrew.

“And when you factor in the other costs, the other tariffs, it will work out somewhere between another seven to nine cent. So you are looking at maybe US19 cents per kWh which is still less than half of JPS,” he said.

Insisting that renewable energy is the way to go, Chang argued that when one looks at the cost of electricity over the lifespan of 25 years it works out to about US10 cent per kWh. Consumers are now paying JPS over US45 cents per kWh. “Four times as much.”

However, Chang, who has been involved with solar panels since the 1980s, admitted that there is a place for the Jamaica Public Service.

“If we are talking in the context of solar panels as a renewable energy source, then you will need JPS to make the renewable energy source cost effective and viable. What we effectively have been doing is using the JPS as a battery, as a backup battery. So JPS is cheaper than you can buy and maintain our own batteries,” Chang said.

“You don’t use solar panel as a backup system. It is not cost effective that way,” he cautioned, adding, “It doesn’t make sense that you buy solar panels and batteries and invest hundreds of thousands on a backup system that you don’t use.

JPS rates have not gone down significantly for a very long time, partly because the OUR (Office of Utilities Regulations) has mandated that they should concentrate on making the grid more stable, with fewer power cuts.

“We don’t get power cut as we used to before,” Chang said. “So, a solar panel system with batteries as a backup is not worth it anymore.”

Under a complicated formula, JPS will soon start paying small power genera-tors between US20 cents and US26 cents for electricity they feed into the grid.

Read more:

SOLAR power has finally become a viable option, driven by falling prices for photovoltaic panels and the soaring cost of oil, say proponents of the alternative energy.

Rooftop panels, which could last for 25 to 30 years, will now pay for themselves in just six or seven years, claim advocates. Until recently, the pay-back period was up to 20 years.

The cost of solar cells has fallen by as much as 49.5 per cent since the start of 2011, according to the PVX spot market index, which tracks the monthly wholesale costs of the industry.