Jamaica Public Service Company (JPS) may not apply for a tariff increase until October, according to the Office of Utilities Regulation (OUR). The company is currently focused on restoring electricity in rural areas that are still without power six weeks after Hurricane Beryl.
The OUR stated that JPS should have submitted an application for a tariff review in April of this year, but it has been delayed. The director general of OUR, Ansord Hewitt, mentioned that the application could now be submitted by October, with a decision on any rate adjustment expected in January. This means that customers may see adjustments in their electricity bills in January, in addition to the annual inflation adjustment and monthly fuel cost adjustments.
Efforts to obtain a comment from JPS on the matter were unsuccessful. The All-Island Electricity Act, under which JPS operates, is currently under review by a Parliamentary committee.
Meanwhile, JPS reported a profit of US$30.1 million in the first half of this year, representing a 7.1% increase from the same period last year. Revenues also grew by 7.6% to US$538.5 million. This revenue exceeded the company’s projected revenue requirement for 2023, as JPS last applied for a rate increase in 2019 for the period up to 2024.
In 2019, JPS received a rate increase that had a bill impact of under five percent. The company’s positive financial performance and the potential tariff review highlight the ongoing developments in the energy sector in Jamaica.
