THE EDITOR, Sir:
I WRITE in response to the letter entitled "JPSCo's wicked customer charge, which appeared in The Gleaner on June 11, 2003. Please note that the customer charge on bills can be changed only when adjustments are approved by the Office of Utilities Regulation (OUR), and not in an arbitrary manner as the writer suggested.
The writer is correct in stating that the customer charge has moved from $50.00 to $54.00, and more recently to $58.00. These changes are the result of the annual inflation adjustments approved by the OUR, which resulted in increases in the non-fuel rates on electricity bills.
JPSCo, unlike other businesses, cannot freely adjust prices to recover inflation driven costs. It is for this reason that an inflation adjustment clause, approved by the OUR, was included in the tariff regime of 2001. This allows the Company to adjust rates to compensate for the effects of domestic and US inflation. The annual adjustments are therefore automatic, although the actual level of the increase is determined each year by the level of inflation.
Under the rate adjustment formula, the Energy Charge, Demand Charge and the Customer Charge are adjusted annually and fixed for a period set in JPSCo's operating licence. The first inflation adjustment was made in 2002, resulting in the change in customer charge, from $50.00 to $54.00. The second inflation adjustment to JPSCo bills took effect in May 2003, resulting in a further change in the customer charge, which moved from $54.00 to $58.00, as was indicated. A comprehensive review of JPSCo's rates will be done in 2004.
JPSCo appreciates the writer's your feedback, and we encourage him to contact the nearest Customer Service Office or our Call Centre at 1-888-225-5577 should he need further clarification.
I am, etc.,
WINSOME CALLUM
wcallum@jpsco.com
Manager, Corporate
Communication
6 Knutsford Blvd, Kingston
Via Go-Jamaica
