THE EDITOR, Sir:The granting of a tariff of 0.5 per cent as of September 1, 2005 to cover the award of $457.5 million to the Jamaica Public Service Company by the OUR has prompted me to compare this against the self-insurance fund which is being financed by the consumers. The exercise is most revealing.
The amount of $457.5 million or US$7.32 million, using an average exchange rate of J$62.5 to US$1, is to be paid over a two-year period commencing on September 1 by the imposition of a tariff charge of $0.5 per month. This works out at a monthly rate of approximately J$19 million or US$304,000.
On the other hand, the self-insurance fund has been extracting approximately four times the above figure when we apply the two per cent rate that was granted some 15 months ago. The monthly figure for this would be approximately J$76 million or US$1.216 million for a total of J$1.14 billion or US$18.24 million for the 15 months since its inception and, if allowed to continue for two years, would accumulate a further US$29.184 million.
This fund, which was allowed by OUR last year, was to have been for an amount of US$10 million, if what The Gleaner of August 25 quoted is correct.
The above now leads me to ask three questions:
1. Why was the amount granted by OUR not ordered to be paid out of the accumulated insurance fund?
2. Is the two per cent tariff for the insurance fund to be continued now that it has exceeded the US$10 million limit?
3. Could not the actual fund figures be published seeing that it is being funded by the consumers?
We now await replies from the OUR and the JPS.
I am, etc.,
R.D. SHOUCAIR CD, MD.
Kingston 10
