Shelly-Ann Thompson, Staff Reporter

The Jamaica Public Service Company (JPS) has rejected claims by energy minister Clive Mullings that its owes Petrojam $5.7 billion, of which $2.9 billion is now due.

According to the light and power company, it owes Petrojam approximately $3.5 billion for invoices already received.

"Of this amount, $1.1 billion is outstanding for the month of August, while the balance ($2.4 billion) is due for payment by September 19," said Winsome Callum, head of corporate communications at the JPS.

She also said the state-owned refinery had agreed to a payment method for the balance.

Counters claims

But Winston Watson, managing director at Petrojam, has rejected this claim. He has also countered the JPS figures, saying while the outstanding amount continues to increase, the JPS has only paid $200 million of the more than $2 billion it owes.

"I know what they owe and what we are going to collect," he said.

"On August 20, they sent an email regarding the $2.4 billion, saying they wished to clear their balance, and the mail contained a table, which showed a payment plan saying they would settle by early September. We replied, saying we did not accept," he added.

Watson also said he received an email from the JPS yesterday indicating that it had made another payment of $318 million.

Watson said the electronic letter had further stated that the company intended to clear its balance by the latest Monday.

In a release late Tuesday night, the JPS said it had an arrangement with Petrojam to pay its fuel bills within 30 days, and that it endeavoured to fulfil its obligations.

The JPS also said steep and unpredictable increases in fuel costs had contributed to a delay in the payment of invoices.

Payment schedules

Callum said due to this situation, payment schedules were agreed on by the JPS and Petrojam, and her company had been honouring the payment schedule.

But Watson insisted that no payment schedule had been agreed.

Protests continue to mount by JPS customers who are taking issue with exorbitant bills which also exceeded the permitted 35-day period.

The Office of Utilities Regulations says it is investigating the matter. It has also directed that the JPS not disconnect the electricity of customers who received bills for a period in excess of 35 days.

shelly-ann.thompson@gleanerjm.com