Power cuts cost companies millions By Omar Anderson,
Staff Reporter
SEVERAL MANUFACTURERS have chalked up hundreds of thousands of dollars in overtime payments to make up for lost production caused by frequent electricity power cuts. Among 11 companies which filed complaints to the Jamaica Manufacturers' Association (JMA) last week, at least one reported losses of at least $750,000 for the previous week. Another reported losses in the millions. "We were forced to run overtime on weekends for the past couple months, worth more than $2 million," said Stephen MacKay, managing director of IGL Limited in Kingston. A source at Van Leer said yesterday that last week's load-shedding cost the company more than $79,000 in losses. "We have to work overtime to catch up on the shortfall of export production," said the source who requested anonymity. Meanwhile, Francois Chalifour, managing director of Jamaica Drinks Company Limited in White Marl, St. Catherine, said yesterday the recent spate of load-shedding has damaged equipment at his company, the cost of which he said was hard to estimate. "Just last week alone 15 hours of production time was lost and that may be half a million dollars," he said. For his part, Philip Crimarco, managing director of Carib Brake Limited, said there was a 15 per cent loss in the company's efficiency due to the power cuts. He said heat is required to produce brakes at his company and re-heating the machines whenever there's a black-out has been costing the company a lot, he said. He was unable, however, to quantify the loss. "Many nights we leave them (brakes) in the curing oven and there's a power cut and nobody is there [at Caribbean Brakes] and the whole curing process is interrupted and then it takes longer," Mr. Crimarco told The Gleaner. Other companies which filed complaints to the JMA were Le Meridien Jamaica Pegasus, Hilton Kingston Hotel, Tropicair, Caribbean Bottlers Limited, Wray and Nephew, Henkel, and Jamaica Bags Limited in May Pen, Clarendon. Meanwhile, Winston Hay, director-general of the Office of Utilities Regulation (OUR), the body set up to supervise utility companies, said yesterday that the Jamaica Public Service Company Limited (JPSCo) had been giving the OUR regular updates on its progress to bring the availability of electricity to normality. He said the OUR received the last update last week which promised fewer power cuts this week as the JPSCo's number three unit at Old Harbour is put back in service. Mr. Hay added the light and power company's number two unit also at Old Harbour is expected to restart service in August, the same time when a unit from independent supplier, the Jamaica Private Power Company, is expected to be recommissioned into service. The OUR director-general also said the JPSCo had advised him it will also be installing a new generating unit at Bogues in Montego Bay in August. JMA president Clarence Clarke, said manufacturers would be raising the issue of compensation and its programme for a return to normality when it meets with JPSCo officials on July 16.
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