Omar Anderson, Gleaner Writer
Clive Mullings (foreground), Opposition spokesman on utilities, and Ruddy Spencer, president of the Bustamante Industrial Trade Union, speaking during a press conference at the Jamaica Labour Party Belmont Road headquarters yesterday. - RUDOLPH BROWN/CHIEF PHOTOGRAPHER
THE OPPOSITION Jamaica Labour Party (JLP) yesterday called for a judicial review of the Jamaica Public Service Company's (JPS) operating licence.
The JLP's call comes against the background of what it said was JPS' disproportionate contribution to the profits of its Atlanta-based parent company, Mirant Corporation. The Jamaican light and power company contributed US$16.7 million to the US$99 million profit of its parent company in 2004. This, although JPS only contributes 600 megawatt (mw) or 11 per cent of Mirant's 5,500 mw capacity, the JLP noted.
Since last year, JPS customers have been complaining about spikes in their electricity bills which they say frequently outweigh consumption. The Opposition pointed to Mirant's recent report of US$7 million ($430 million) increase in its Caribbean gross margin due to regulatory approved rates in non-fuel tariffs.
But the JLP says it wants an independent audit of JPS billing and metering systems, to be done by international light and power experts, and not by the Office of Utilities Regulation (OUR) whose performance it described as "abysmal".
Speaking at a press conference held yesterday at the party's Belmont Road headquarters in St. Andrew, Clive Mullings, the JLP spokesman on mining, energy and telecommunication, accused JPS of being "dishonest".
PRESSURE THE GOVERNMENT
"Apart from dealing with the issue of the licence itself, we will be filing a writ of mandamus against the minister (Phillip Paulwell) and the OUR for them to do what is required under the law, and seek to engage all stakeholders across the board to put pressure on the Government to pass the appropriate legislation," he said. This, Mullings said would empower the Bureau of Standards to test JPS meters.
Quoting from an OUR report, Mr. Mullings said JPS has been less than forthright in its recent successful bid to gain a rate increase, based on the effects of Hurricane Ivan on its transmission and distribution lines.
According to him, some pieces of other equipment JPS claimed weren't insured, had indemnity coverage.
"I'll describe that as dishonest," the JLP spokesman said of the alleged $181.4 million overstatement. "It is an attempt to price-gouge and that is one more indication that we ought to have an enquiry as to what is happening at JPS."
But Winsome Callum, public relations manager at JPS, told The Gleaner yesterday it was unfortunate that the Opposition should make such erroneous statements, unsupported by facts.
"It must be noted that the international consultants (Axis International), hired by the OUR, corroborated the JPS claim, indicating that $1.3 billion of the JPS claim for J$1.46 billion in hurricane damage was substantiated," she said.
