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The Jamaica Public Service (JPS) has billed a community centre in St Elizabeth about $71,000, but the facility only had power for two days during the billing cycle due to damage to the building caused by Hurricane Beryl.
This, along with multiple complaints reported to the Ministries of Science, Energy, Telecommunications and Transport, prompted a notice from JPS that an investigation into its billing practices following the Beryl incident had been ordered.
In a letter dated August 19 to JPS chief executive Hugh Grant, Finance Minister Daryl Vaz said the ministry had good reason to be concerned about complaints from customers who reported significant anomalies in their electricity bills following Cyclone Beryl.
He singled out the community center, calling the money “unfair” and “unbearable” because it has been without power since the July 3 hurricane.
“This and other issues raise significant concerns about the effectiveness and reliability of JPS’s current billing processes and methods.
“As Jamaica’s sole electricity provider, JPS has a duty to maintain transparency, accuracy and fairness in all aspects of its operations, particularly when billing customers during emergencies or natural disasters,” Vaz said in the letter, a copy of which has been The Gleaners.
He said given the seriousness of the allegations against the power company, a detailed disclosure of its billing methodology should be submitted to the Ministry of Power, including how estimates are calculated, how actual usage is recorded, and specific measures JPS has implemented to ensure billing accuracy after the Beryl incident and in the future.
In a similar letter, also dated August 19, Watts asked the Office of Utility Regulation (OUR) to investigate JPS’s billing practices during this period by September 6 and report its findings.
Noting that the ministry is highly concerned about the allegations, Vaz said the allegations imply that there may be errors or discrepancies in the JPS’s billing system, which, if true, could undermine public confidence.
“As the regulatory body responsible for overseeing public utilities in Jamaica, OUR is mandated to protect consumers and ensure that service providers operate in a transparent and fair manner.
“Given the seriousness of the allegations, the ministry requires OUR to immediately conduct a comprehensive audit of JPS’ billing processes, focusing on how the company handled billing during and after the devastation caused by Cyclone Beryl,” he said.
The Gleaners OUR was asked to provide year-over-year data on JPS customer bill complaints, but the agency said it would provide that information later.
However, OUR’s Assurance Standards Consultation Paper shows that 62% of complaints received by JPS in the five-year period from 2017 to 2021 were about billing matters. The total number of complaints was 5,767.
Three JPS customers The GleanersTwo people who wished to remain anonymous criticised the power company after electricity tariffs soared between July and August.
Christopher Henry, who said his bill went from $37,063.89 to $53,254.54, said his consumption was about the same as in previous billing periods, but his fuel bill increased significantly.
“My family’s electricity consumption has decreased. Normally, both of our family members are abroad, and they have been abroad since June. In addition, our family was without electricity for three days. So I was wondering why the electricity consumption increased so much,” he said.
The second customer told me The Gleaners His bill went from $13,934.26 to $32,339.29. The man, who owns a gas station, said he was also shocked by the cost of fuel, which has risen by 30 per cent.
“I am well aware of Petrojam’s prices and movements. In August, diesel and sulphur prices dropped. I don’t know where they get that 30 per cent profit. It is clear that they are inflating the bills to pay for Beryl and the losses that have resulted from it,” he said, referring to the storm that devastated several communities on Jamaica’s south coast.
Additionally, he said he was away from the island for 10 days in early August. Additionally, he said he was without electricity for several days after Hurricane Beryl.
A third customer said his previous bill was $16,744.47. This month, he was asked to pay $24,502.64.
Fuel costs increased from $24.335 per kilowatt to $32.172 per kilowatt.
“I think JPS is trying to recoup the money they need to pay from Hurricane Beryl, including paying contractors and replacing power poles. I was away during the day, I left at 7 a.m. and came home at 8 p.m. So, I was away from home for 12 hours. So how did I get a bill?” the man questioned.
In a statement last night, JPS acknowledged customers’ concerns and confirmed changes to fuel charges were a factor in the increase in electricity bills from July to August.
“The main factors that cause a customer’s bill to go up or down include the energy charges set by OUR, the amount of electricity the customer uses, and other factors including fuel costs and the bill exchange rate which can change from month to month,” JPS said.
“The recent increase is primarily due to higher fuel costs and, to a lesser extent, higher bill exchange rates,” the company added, pointing to the change in fuel costs and noting that the bill exchange rate on bills changed from $156.30:1 in July to $157.53:1 in August.
“The fuel charge a customer sees on their bill is largely influenced by the actual cost of purchasing the fuel used to generate electricity during that period.”
To prevent potential damage, liquefied natural gas (LNG) supplier New Fortress Energy had to shut down natural gas facilities ahead of the hurricane, JPS said.
“Power plants that rely on LNG are switching from LNG to a significantly more expensive fuel, automotive diesel (ADO), to generate electricity on certain days, resulting in an associated increase in costs reflected on customer bills.”
However, Finance and Public Services Minister Dr Nigel Clarke disputed the JPS’s explanation, noting that the power company had informed him of the need to make the switch and requested an exemption from the special excise duty that ADO uses for electricity generation in order to restore normalcy.
“The Treasury has responded and, in line with the JPS’s request, has reduced the concessional price for July from $44.90 per litre to $4.5611 per litre,” Clark said.
Last month, it was announced that JPS customers would not have to pay extra for the extensive damage to the company’s infrastructure following Hurricane Beryl because the utility had access to a $50 million insurance fund.
OUR has approved the withdrawal of US$4.5 million (J$697.5 million) from the Electricity Disaster Fund for JPS’s response to the hurricane season. The company had previously requested US$7 million.
JPS later revealed that 94 transmission structures, 2,602 light poles, 4,287 conductors, 137 transformers, and 2,185 other transmission and distribution equipment were damaged as a result of Beryl’s impact.
Yesterday, Opposition Energy and Climate Change spokesman Phillip Paulwell urged OUR to authorise the JPS to withdraw all recently published bills.
“Given the tremendous hardship facing consumers, particularly in the aftermath of Hurricane Beryl, it is clear that something is fundamentally wrong with JPS’ billing processes,” Paulwell said.
“Many households have been without electricity for long periods of time and these exorbitant charges are not only unjustified but also unacceptable.”
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