The Office of Utilities Regulation (OUR) has halted the scheduled implementation of electricity wheeling to allow the Jamaica Public Service Company Limited (JPS) to make an application to the Electricity Appeal Tribunal.

This means that the OUR will not begin to process applications for wheeling this month, as was scheduled.

A statement from the OUR today said the JPS requested that the regulator put a stop the process, pending the hearing of its appeal.

The grounds of appeal have not been revealed.

In return for the OUR

The Office of Utilities Regulation (OUR) has halted the scheduled implementation of electricity wheeling to allow the Jamaica Public Service Company Limited (JPS) to make an application to the Electricity Appeal Tribunal.

This means that the OUR will not begin to process applications for wheeling this month, as was scheduled.

A statement from the OUR today said the JPS requested that the regulator put a stop the process, pending the hearing of its appeal.

The grounds of appeal have not been revealed.

In return for the OUR

Energy Minister Phillip Paulwell - File photo
Energy Minister Phillip Paulwell – File photo

Daraine Luton, Senior Staff Reporter

The Cabinet will on Monday consider whether it will continue its appeal of the court ruling against the monopoly licence for electricity transmission and distribution granted to the Jamaica Public Service Company (JPS).

The parliamentary opposition has said Energy Minister Phillip Paulwell should resign given that the appeal contradicts his previous statements that he is in support of an end to the monopoly.

But Paulwell says the Government has not made a decision to appeal the ruling.

He said the attorney general went ahead and filed the application because the time within which to do so was running out.

This means if the Cabinet decides against pursuing the appeal, the application would be withdrawn.

Under the court rules, unsuccessful parties have 42 days from the handing down of a judgment in the Supreme Court within which to file an appeal.

The Supreme Court handed down its ruling in the JPS class action suit on July 30.

Asked why the Government did not make a decision earlier about whether it would appeal, Paulwell said the matter had not arisen because of several pressing issues.

Meanwhile, the energy minister insists that his utterances on the matter since the Supreme Court ruling have been careful.

He adds that he and the Cabinet are on the same page regarding promoting competition in the transmission and distribution of electricity.

Read more:

Energy Minister Phillip Paulwell - File photo
Energy Minister Phillip Paulwell – File photo

Daraine Luton, Senior Staff Reporter

The Cabinet will on Monday consider whether it will continue its appeal of the court ruling against the monopoly licence for electricity transmission and distribution granted to the Jamaica Public Service Company (JPS).

The parliamentary opposition has said Energy Minister Phillip Paulwell should resign given that the appeal contradicts his previous statements that he is in support of an end to the monopoly.

But Paulwell says the Government has not made a decision to appeal the ruling.

He said the attorney general went ahead and filed the application because the time within which to do so was running out.

This means if the Cabinet decides against pursuing the appeal, the application would be withdrawn.

Under the court rules, unsuccessful parties have 42 days from the handing down of a judgment in the Supreme Court within which to file an appeal.

The Supreme Court handed down its ruling in the JPS class action suit on July 30.

Asked why the Government did not make a decision earlier about whether it would appeal, Paulwell said the matter had not arisen because of several pressing issues.

Meanwhile, the energy minister insists that his utterances on the matter since the Supreme Court ruling have been careful.

He adds that he and the Cabinet are on the same page regarding promoting competition in the transmission and distribution of electricity.

Read more:

ATTORNEY-AT-LAW Hugh Wildman on Tuesday urged the Government to use its 19 per cent share in the Jamaica Public Service (JPS) to acquire the electricity grid from the light and power company in an effort to accommodate energy providers who would want to enter the market.

Wildman, the attorney for the group of persons who had the Supreme Court struck down the exclusivity aspect of the JPS’s 20-year all-island licence, said that the grid should be in State control in order for Jamaica to benefit from affordable energy.

“Persons are expressing an interest in providing energy. What the Government needs to do now is use its 19 per cent share to acquire the grid from the JPS to allow other players to come on board,” said Wildman, who was speaking at the Kiwanis weekly luncheon at the Wyndham Hotel in New Kingston.

Wildman said that there are new players out there with better technology that would benefit consumers.

“Without cheaper energy Jamaica is going nowhere but down. Jamaica deserves better,” Wildman said.

The way was made clear for other players to enter the energy market when Justice Bryan Sykes on July 30 struck down the exclusivity aspect of JPS’s licence, issued by the energy minister in 2001. At the same time though, Sykes said that the all-island aspect of the licence was valid.

JPS has since appealed the ruling. So too have Dennis Meadows, Betty Ann Blaine and Cyrus Rousseau, the group of people who have brought the action against the JPS.

The claimants are asking the Court of Appeal to declare the licence invalid. The claimants are set to argue that only one licence was issued to the JPS and that it cannot be divided to make one part valid and another part invalid, as was done by the Supreme Court. The claimants are contending that the Electric Lighting Act prevents an entity from providing electricity across the entire island.

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PREPARATIONS for round two in the battle over the legality of the Jamaica Public Service’s (JPS’) all-island licence stepped up yesterday with the filing of a counter appeal to JPS’ own filing in the appellate court on Monday.

The counter appeal was filed by former Government Senator Dennis Meadows, Betty-Ann Blaine and Cyrus Rousseau, who were in July successful in having Justice Bryan Sykes strike down the exclusivity aspect of the JPS licence.

TOMBLIN

Energy Minister Phillip Paulwell (left) is seen here with JPS chairman Hisatsugu Hirai in January 2012 at a reception hosted by Hirai. - File
Energy Minister Phillip Paulwell (left) is seen here with JPS chairman Hisatsugu Hirai in January 2012 at a reception hosted by Hirai. – File

Power provider, Jamaica Public Service Company (JPS), disclosed depressed quarterly profit of half-billion dollars on Wednesday but avoided accounting for the pending loss of its monopoly status amid court appeals and talks with the Government over securing its exclusive licence.

JPS made net profit of US$5.8 million (J$528m) at second quarter June 2012, down 41 per cent compared to year-earlier levels.

The company’s reduced profit resulted from a 44 per cent spike in finance costs to US$12.6 million compared with a year earlier.

Directors Hisatsugu Hirai and Fitzroy Vidal said in a joint note that it was too early to quantify the impact of the Supreme Court decision that set aside JPS’s monopoly but did not invalidate the licence.

“The outcome of this court decision, which the company intends to appeal, cannot be determined with certainty at this time and no provision has been made in the financial statements regarding this matter,” stated the directors on behalf of the board.

Hirai is chairman of the power utility.

Earlier this week, JPS president and CEO Kelly Tomblin said the company could see its US$450 million of long-term loans placed in default if it loses the legal appeal to keep its all-inclusive licence and if the Jamaican Government refuses to amend the language in the agreement.

But it also means that the financing of the near US$620-million planned natural gas power plant is virtually on hold pending the appeal. JPS’ loans were premised on its distribution monopoly arising from its licence, which runs to year 2027.

For the half year, JPS made net profit of US$7 million, or one-third the HY2011 results of US$21 million, despite an uptick in revenue to US$581 million.

Last month’s Supreme Court ruling invalidating JPS’ monopoly on distribution of electricity was a victory for claimants Dennis Meadows, Betty Ann Blaine and Cyrus Rousseau who challenged the exclusive 20-year licence granted by the then minister of mining and energy to the JPS in 2001.

Electricity charges in Jamaica remains one of the highest in the region due to its reliance on expensive oil, which has tripled in price since 2000.

JPS’ fuel bill topped US$407 million at half year, rising by more than 10 per cent year-over-year, but was flat at US$201 million in the second quarter.

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