Tyrone Reid, Staff Reporter
THE JAMAICA Public Service Company (JPSCo.) has applied for an increase in non-fuel base rates, which if approved will result in an average increase of between 11 to 18 per cent on customers' bills.
The rate of increase will be dependent on the category in which the customers fall, says a release from the JPSCo.
The new rates, if approved by the Office of Utilities Regulation (OUR) will be implemented in June.
"We recognise that there is never an opportune time to ask customers to pay more, especially in light to the recent movements in fuel costs and the foreign exchange rate," said Charles Matthews, JPSCo president and chief executive.
However, Mr. Matthews said the new tariffs will allow the company to recover on the incremental investments it has made since 2001 and preserve the sound financial base needed to attract capital for continued service improvement.
David Geddes, OUR communications manager, confirmed receipt of the application, but said that there is a mandatory process that proceeds any decision.
"We have to consult with the public between March 24 to April 19, where we will have a series of meetings in every parish," he told The Gleaner.
The meetings are the medium through which citizens are afforded the opportunity to voice their concerns in favour or against the increase. Additionally, he said JPSCo. would have to make presentations at these meetings, to explain and outline the reasons for the requested increase.
The agency recently went through a similar process with the National Water Commission, to which it granted a 26 per cent increase. The water agency had applied for 42 per cent.
The decision led to public criticism of the agency, which was accused of being partial to the utility companies, to the detriment of their customers.
The OUR's mandate, said Mr. Geddes, stipulates that utility companies are entitled to a reasonable return on their investments.
After the decision-making process is complete, the OUR can either grant, deny or modify the request, he said.
