MORGAN
CONSUMERS WILL be faced with a 7.5 per cent increase in the energy charge on their monthly electricity bill in September as a result of an automatic tariff adjustment due to inflation.
J. Paul Morgan, director general of the Office of Utilities Regulation (OUR), told The Gleaner last night that the tariff adjustment, which is guaranteed at 6.5 per cent applied over a 12-month period, will work out to 7.5 per cent over 10 months. Mr. Morgan explained that the adjustment should have been made in June, however, because of damage done by Hurricane Ivan last September, the implementation was delayed until now.
"The fact is that (the increase) is not going to be six-and-a-half per cent because they (JPS) are entitled to recover that over 12 months. What they are going to be doing is recovering that over 10 months, so it's more like seven-and-a-half per cent," Mr. Morgan explained. He emphasised, however, that the increase would only be applied to the energy charge on customers' electricity bills, which will translate to about a 3.5 per cent to four per cent increase in the overall bill, starting with the September bill.
The JPS is entitled to an annual tariff adjustment to meet the increases in operational expenses based on fluctuations in the inflation rate as stipulated under the regulatory guidelines set out by the Government.
In the meantime, the JPS yesterday blamed the recent disruptions in the public electricity supply on a shortfall in its generating capacity because of malfunctions at its Old Harbour power plant in St. Catherine.
Responding to questions from The Gleaner, Ruthlyn Johnson, communication officer at the JPS said a unit at the Old Harbour power plant developed problems, resulting in several areas experiencing power cuts. She could not explain the nature of the problem with the damaged unit but power cuts were experienced across most parishes.
Mrs. Johnson said another unit has since been commissioned into operation. She emphasised that the JPS was not carrying out load-shedding. However, "If there is the need for load-shedding to be carried out at any time, the company will provide customers with timely updates."
