Tyrone Reid, Staff Reporter
( left - right ) CALLUM AND MORGAN
THE OFFICE of Utilities Regulations (OUR) has said that the cries of the protesting public for a rollback of the rate increases recently granted to the Jamaica Public Service Company (JPS), cannot be met without the Government attracting a lawsuit.
J. Paul Morgan, director general of the OUR explained that although the Government reserves certain powers, flexing them on this issue would not be wise.
"We can't order a roll back. I can't go against the terms of the licence because that would be a breach of contract," he said. Mr. Morgan explained that under the JPS' licence, it is entitled to have its rate adjusted every year in June to reflect the rate of inflation in Jamaica and the United States.
As it now stands, Mr. Morgan said that there is nothing the Government can do. However, he pointed out that the light and power company could decide to forfeit the rate increase.
WEIGHING THE OPTIONS
When contacted, Winsome Callum, corporate communications manager at JPS was mum on the matter. "We are still examining the OUR's decision and considering our options," she said. When quizzed on whether those options include forfeiting the granted increase, Ms. Callum said she was not at liberty to reveal the options being weighed at the moment.
So far, JPS has shown no signs of making such a move. Last week, Ms. Callum warned that if citizens refused to pay their energy bills on time the power supply would be cut. "Your bill needs to be paid when it is due. The company does disconnect and we withdraw service when the bill is not paid," she said while speaking to a Gleaner reporter. Ms. Callum explained that the cost of oil has been the major factor behind the increases. "We are at the mercy of world oil prices," she told The Gleaner on Monday.
Last Wednesday the OUR authorised the utility company to reclaim from consumers $458 million of a $1.5 billion hurricane damage claim. This will represent a 0.5 per cent increase in bills, which is in addition to a 3.5 per cent increase granted earlier and set to take effect next month.
