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’s 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.
“JPS 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,” said the company in its submission. “JPS 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.”
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: “In 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.”
Read more: http://www.jamaicaobserver.com/news/JPS-applies-for-modest-rate-increase#ixzz1sVbsJf8B
RSS
Facebook
Twitter
