JAMAICA Public Service Company (JPS) has applied for a rate¬† adjustment that could result in a 0.42 per cent increase in light bills.
In its submission to the Office of Utilities Regulations (OUR),¬† the light and power company suggested that it increase its non-fuel rates by an¬† average of 2.09 per cent.
It also asked for an adjustment to the heat rate target that would¬† result in a 1.55 per cent reduction in the fuel rate.
Given that the fuel component of the typical residential¬† customer‚Äôs bill represents approximately 65 per cent of the bill, the overall¬† impact would be a 0.7 per cent reduction in bills.
However, the electricity distribution monopoly wants the OUR to¬† consider incorporating three measures aimed at recovering some of its loss¬† reduction funds lost to taxes and increasing the amount of system losses it can¬† pass through to customers.
‚ÄúJPS believes the fuel pass through is fundamental to the¬† viability of the business given that fuel represents more than 65 per cent of¬† total costs,‚ÄĚ said the company in its submission. ‚ÄúJPS is not in the business of¬† profiting on fuel costs but at the same (time) recognises the importance of an¬† incentive based system to encourage efficiency.‚ÄĚ
The utility asserts that electricity theft, which is the main¬† contributor to system losses, is a socio-economic problem and will take some¬† time to address effectively .
JPS also proposed that approximately one third of loss reduction¬† funds are being lost to taxation.
It added: ‚ÄúIn summary, while the current proposed adjustments to¬† the fuel and non-fuel tariffs before taking the requests into consideration¬† would result in an overall bill reduction of 0.69 per cent for the typical¬† residential customer, we estimate that the three requests above would instead¬† result in a total bill increase of approximately 0.42 per cent but are vital to¬† ensuring the continued viability of the utility company in Jamaica.‚ÄĚ