( L - R ) CALLUM AND MULLINGS
THE JAMAICA Public Service Company (JPS) has countered suggestions that it should repay the Government $200 million for the removal of its own equipment along the North Coast Highway.
The Ministry of Transport and Works had come under pressure during last week's sitting of Parliament's Public Accounts Committee to explain why it had paid the sum to the privately-owned light and power company for the removal of old transformers and old utility poles along Segments Two and Three of the highway.
On Monday, Clive Mullings, Opposition Spokesman on Energy, told The Gleaner that the JPS should repay the funds.
"It is the responsibility of JPS, under their own maintenance regime, to maintain their light posts," Mr. Mullings said. "(This) is an indication that the Government is shoring up the company outside of the terms of their licence."
CRITICAL CLAUSE
But yesterday, Winsome Callum, head of corporate communications at the JPS, said that, based on the terms of the licence under which the light and power company operates, the JPS should be paid to relocate poles or transmission lines.
"Condition 25 of the licence clearly says (that), should the company be required to relocate its transmission or distribution lines, then there needs to be a payment to the company by the party requiring the relocation whether it be the Government, the parish council or the Kingston and St. Andrew Association," she said.
The licence, as set out in the Jamaica Gazette, dated April 12, 2001, also states that the cost should be agreed on between the licensee and the requesting authority. Otherwise, all costs incurred should be billed based on the cost of moving to a new location, the cost of the new line and the accrued depreciation in value of the equipment.
OUR'S CALL
Ms. Callum said that, if there were any disputes regarding the reimbursement, it should be determined by the Office of Utilities Regulation.
Last week Dr. Alwyn Hayles, Permanent Secretary in the Works Ministry, said the payment was to expedite the highway project which, he said, was being delayed by the JPS.
Dr. Hayles said that, while he agreed the matter should have remained with the Attorney-General to be pursued, the cost of delays on the highway project would have been much more significant.
However, a letter dating back to 1992, from the Attorney-General's chambers, stated that the ministry was not legally bound to compensate JPS to remove the utility poles.
