PROFESSOR Rosalea Hamilton, head of the MSME (micro, small and medium-sized enterprises) Alliance, is calling for clarity on Wednesday’s implementation of an increase in gas tax.

“The ripple effect of this tax is devastating, as it affects all sectors. Therefore, more clarity and transparency are required on how it is being applied,” Hamilton told Auto.

HAMILTON… the ripple effect of this tax is devastating, as it affects all

Hamilton said with this week’s increase in fuel prices, a representative of the state-run refinery Petrojam should explain how the new tax is applied.

“It’s the responsibility of the people who have the authority to make these decisions to properly inform the public. They are to say, very clearly, that in addition to the US Gulf reference price and movement of the American dollar, we now have a tax of whatever the figure is so that we’re all clear,” she said.

According to Petrojam’s weekly billing prices, the price of gasolene went up on Wednesday by $2.31 per litre, while the price of diesel rose by $2.50 per litre.

The professor said this situation compounds an existing problem of Petrojam’s pricing formula “which is not transparent”.

However, in confirming the application of the new tax on fuel prices on Wednesday, Winston Watson, managing director of Petrojam, said: “The tax was applied and the effect was minimal. The tax is a like-for-like replacement.”

Watson explained that the Government had replaced the Custom User Fee (CUF)

PROFESSOR Rosalea Hamilton, head of the MSME (micro, small and medium-sized enterprises) Alliance, is calling for clarity on Wednesday’s implementation of an increase in gas tax.

“The ripple effect of this tax is devastating, as it affects all sectors. Therefore, more clarity and transparency are required on how it is being applied,” Hamilton told Auto.

HAMILTON… the ripple effect of this tax is devastating, as it affects all

Hamilton said with this week’s increase in fuel prices, a representative of the state-run refinery Petrojam should explain how the new tax is applied.

“It’s the responsibility of the people who have the authority to make these decisions to properly inform the public. They are to say, very clearly, that in addition to the US Gulf reference price and movement of the American dollar, we now have a tax of whatever the figure is so that we’re all clear,” she said.

According to Petrojam’s weekly billing prices, the price of gasolene went up on Wednesday by $2.31 per litre, while the price of diesel rose by $2.50 per litre.

The professor said this situation compounds an existing problem of Petrojam’s pricing formula “which is not transparent”.

However, in confirming the application of the new tax on fuel prices on Wednesday, Winston Watson, managing director of Petrojam, said: “The tax was applied and the effect was minimal. The tax is a like-for-like replacement.”

Watson explained that the Government had replaced the Custom User Fee (CUF)

A Jamaican man, working in the United States energy industry, has won a prestigious award for his work on a safety project that makes it possible for utility workers to detect stray voltage with a smart phone or tablet.

RICHARDSON… this award is gratifying because it recognises our commitment to public safety

Paul Richardson was named a winner of the Technology Transfer Award from the Electric Power Research Institute (EPRI), a national energy research organization. Richardson is a district operator in system and transmission operations at New York power company Con Edison, where he has worked since 2004. He grew up in Portmore, St Catherine and attended Excelsior High School before migrating to the US as a teenager.

Richardson worked with two fellow Con Edison employees on research into using smart phone and tablet personal computer technology to detect contact voltage on streets. The technology could make it possible for a utility worker with a smart phone or tablet to detect contact voltage, also known as stray voltage, the company said, noting that the faster contact voltage is detected, the faster crews can make repairs, ensuring public safety.

“We live in a world that is power dependent and as technology advances the demand for that power increases. At Con Edison, nothing is more important than the safety of the New Yorkers who rely our service and the safety of our own employees,” Richardson told Caribbean Business Report yesterday.

“This award is gratifying because it recognizes our commitment to public safety,” he added.

At Con Edison, Richardson is responsible for switching electric transmission and distribution equipment in and out of service for routine work and emergency conditions.

“My primary objectives are the safety of our personnel, the reliability of our service and protecting our equipment and our customers’ equipment from damage,” he said.

He said the project came about as the company constantly explores new technologies and methods to make its service safer.

“This project was a part of that process. The technology could make it possible for a utility worker to use a portable device to detect objects that are inadvertently energized so that repairs can be made,” he said.

Richardson said his interest in engineering has its genesis from a summer internship he had at the Caribbean Cement Company.

“There I had the opportunity to observe industrial manufacturing and the technical aspects of maintaining a manufacturing plant,” he told Caribbean Business Report.

Now living in White Plains, New York, Richardson is a graduate of the Polytechnic Institute of New York University with a Master of Science degree in Electrical Engineering.

Richardson was one of eight Con Edison employees who won Technology Transfer Awards for projects to make the delivery of electricity safer and more reliable.

Con Edison is a subsidiary of Consolidated Edison, one of the nation’s largest investor-owned energy companies, with approximately US$12 billion in annual revenues and US$41 billion in assets. The utility provides electric, gas and steam service to more than three million customers in New York City and Westchester County, New York.

“We are in a constant and relentless search for technology and methods that can improve our service,” said Craig Ivey, the president of Con Edison. “The men and women of Con Edison are proud to see eight members of our team recognized for research that will benefit the New Yorkers we feel privileged to serve.”

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BENEFICIARY countries of the PetroCaribe agreement are anxiously watching developments following Tuesday’s death of Venezuelan President

Readers of these columns are well aware that we have always been critical of the undemocratic actions of late Venezuelan President

Readers of these columns are well aware that we have always been critical of the undemocratic actions of late Venezuelan President

AS WRENCHING as it may still have been for his mass of supporters around the world, few could claim that Tuesday’s death of

Monopoly light distributor Jamaica Public Service Company (JPS) recorded close to US$15 million (J$1.4b) in foreign exchange losses last year, reflecting one of its worst currency shocks ever.

The amount shows the brutal impact of depreciation of the Jamaican dollar on one of the largest local companies.

The forex losses in the calendar year reflect mainly the increase in cost to service JPS’s borrowing.

The company disclosed US$14.8 million of forex losses in 2012 compared to US$3.2 million in 2011. The dip was based on the 7.3 per cent depreciation of the Jamaica dollar against the USD arising in part from uncertainty of an International Monetary Policy agreement. The dollar closed the JPS financial year ending December at J$92.98.

JPS unaudited 2012 financials did not significantly explain the forex losses, and queries to the company were unanswered up to press time. JPS listed the loss as a gain but then added the amount to other costs – indicating an error.

Previous audited financials explained that the power utility incurs foreign currency risk primarily on “purchases and borrowings” that are denominated in a currency other than the United States dollar.

“The company manages foreign exchange exposure by maintaining adequate liquidity resources in the appropriate currencies,” stated JPS in its 2011 financials.

The utility purchased US$777 million worth of fuel for the year ending December 2012 and holds US$353.5 million in long-term loans.

Last year’s forex loss was among the worst on record since the company assumed foreign ownership in 2001.

Five years ago, in 2008, when the currency lost 15 per cent of its value, the company recorded US$8 million in forex losses.

In periods before 2008, when the company reported its earnings in local currency, the foreign exchange losses were: J$1.9 billion in 2003; J$313 million in 2004; J$620 million in 2005; J$593 million in 2006; and J$807 million in 2008.

JPS is owned by Japan’s Marubeni Corporation, 40 per cent; South-Korea-based Korea East-West Power (EWP), 40 per cent; Government of Jamaica, 19.9 per cent; while 3,000 shareholders own the remaining 0.1 per cent of the shares.

The utility reported net profit of US$12.7 million (J$1.18b) last year on sales of US$1.14 billion (J$106b).

Equity increased US$7.6 million to US$387 million (J$36b).

business@gleanerjm.com

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