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The Office of the Utilities Regulatory Authority (OUR) says it has launched an investigation into the billing practices of the Jamaica Public Service (JPS) following a request from Energy Minister Daryl Vaz as the agency came under criticism for its response to the power company’s high charges in July.
The agency, created by a 1995 Act of Parliament to regulate the operations of utility companies, said the minister was “well within his rights” to make such a request and said it was taking action.
“It is important to note that prior to receiving the Minister’s request, OUR had already decided to investigate the emerging complaints and sought specific information from JPS regarding its recently issued bill,” OUR said in an emailed response The Gleaners.
Serious concerns
Yesterday, Vaz said the high electricity bills received by JPS customers following the passage of Cyclone Beryl rightfully raised concerns, questions and grave concerns for the government.
He questioned the level of oversight by OUR and argued that the high bills should have drawn the attention of the regulator.
Watts pointed to a customer in St. Elizabeth Parish, one of the parishes hardest hit by Hurricane Beryl, who had power only six days in the current billing cycle. Those days were before Beryl hit.
He said power was not restored to the customer’s residence until two days after the billing cycle ended.
He said he was concerned to learn that customers were receiving bills totaling $108,000.
“The government is of the firm view that the current situation cannot continue. I have made this position clear to the JPS leadership and will be making recommendations to Cabinet to reform the regulator,” Vaz said.
He said that based on the current situation, the government had no choice but to conduct a special audit investigation on the JPS Act issued after the cyclone.
Vaz said the country could face more natural disaster risks in the future and looking ahead, it was unacceptable for regulators to “act inappropriately and raise legitimate public concerns that they were not sufficiently vigilant and held utility companies accountable.”
He said OUR allowed JPS to enjoy a 30% rate increase after the hurricane while reserving $50 million in disaster funds.
“This should never happen again and I think the OUR’s muted response to the JPS’s poor handling of the Beryl issue has made it clear that the OUR must be restructured to ensure that it operates in a more effective, efficient manner and ultimately protects the Jamaican people,” Vaz said.
“Since I became minister, all I have seen is for the JPS and nothing for the clients and the suffering people of Jamaica. There has to be fairness.”
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