Over a decade ago the Jamaica Public Service (JPS) Company launched a public education campaign against electricity theft themed around two words and one simple question: “How Come?”. The campaign achieved some success but perhaps the most lasting impact was the integration of the words “How Come?” into regular conversations when confronted with incredible or ludicrous scenarios.

It is a bit disappointing that my advocacy on this matter has not received overwhelming support in the interest of all Jamaicans, but such is politics. As such, rather than joining me and amplifying the pursuit of equity, some have chosen to describe the probe and transparency surrounding the JPS as political theatre. The theatre is often associated with three words: lights, camera, action. Given the other parties in this play afoot, the roles of “lights” and “camera” have already been filled. Allow me then to peacefully advocate action.

All for One ? Or One for All?

The Office of Utilities Regulations (OUR) has a very curious term affixed to its website stating that it is “regulating utilities for the benefit of all”. Since the passage of Hurricane Beryl I have taken a much keener note of some of the rules, regulations, remedies and powers associated with the regulator and I am inclined to believe that the verbiage affixed is, at best, imaginary. The operations of the regulator, with regard to the utility provider, especially since the passage of Hurricane Beryl, can be described as anything but for the benefit of all.

Certainly, as minister, I have had to employ strong advocacy and extreme moral suasion to ensure the concerns of thousands of Jamaicans are not only heard but are addressed with alacrity. Without trying to sound redundant, this course I have taken has undoubtedly placed me within the cross hairs of several political and editorial figures which, besides providing a dose of laughter at times, has been of no benefit to me nor my technical team. We have had to add this mammoth undertaking to our list of priorities to ensure that some equity and recourse is given to the Jamaican people who have been suffering beneath the heels of JPS.

The Electricity Disaster Fund’s Rules of Procedure for Operation and Administration is a 2007 document. This document is over 17 years old and has been without review or adjustment. This either speaks to the efficiency of the fund or the inefficiency of the regulator. The fund is financed through a precautionary provision approved and embedded in the tariff and forms a part of the energy rate expressed in terms of $/kWh. In other words, the fund is financed from the energy bills of consumers.

Prior to the passage of Hurricane Beryl the fund had a value of US$50 million or approximately $7.8 billion. The fund is administered by the JPS and the OUR. It is interesting to note that direct benefit from the fund only accrues to the JPS despite being funded by its customers.

Though the fund is financed by Jamaicans, the rules state that “the primary aim of the fund is to reduce the financial exposure of JPS to damage inflicted on its transmission and distribution assets by natural disasters, in the absence of traditional insurance coverage from firms that specialise in this business.” I fail to see how this is a benefit for all and how Jamaicans continue to pay the piper but in this instance are not allowed to dance to the tune.

If the purpose of the fund is to replace insurance, I imagine that the insurance of JPS’s assets would have been at a cost to the utility provider. In the absence thereof, Jamaicans have been tasked with providing the buffer for the JPS without any consideration on their part. Natural disasters do not only affect the transmission and distribution assets of JPS, they affect the lives and livelihoods of Jamaicans with respect to energy. The fund in its current form is most inequitable and I intend to press for a review of the primary aim of the fund and the application of its resources. A benefit of over $783 million was approved by the regulator before the passage of the hurricane to help JPS fund its preparations. Nothing for the customers. How Come?

To be clear, I am neither suggesting a direct transfer to the Jamaican people nor am I suggesting that having the JPS infrastructure protected is not a form of benefit, but with equity in mind and the knowledge that with these natural disasters come particular challenges and expenses, some provisions can be made that directly benefits the customers funding its existence.

Force Majeure

The scriptures teach us that God sends the rain for the just and the unjust. Force majeure means “greater force” and is related to an act of God, an event for which no party can be held accountable. The passage of the hurricane would undoubtedly have an impact on the JPS and its ability to meet every requirement under its existing licence.

These requirements, though monitored by the OUR, can only be lifted by the portfolio minister upon application from the utility provider. This presents yet another benefit to the JPS provided by Condition 11(2) of the licence granted by the JPS. Interestingly, there again, exists no similar relief for the Jamaican people as a result of force majeure. No provision to release the customers from their obligations in the event of an act of God. No relief from the emergency fund, no mandatory relief from the obligations to pay bills. It seems as though, despite Beryl being an act of God, it is the Jamaican public and the customers of JPS who are being held accountable. Again I ask, ‘How Come’?

Fuel Fiasco

A July 1 letter from the CFO of JPS to the Minister of Finance outlined the likely “Tax impact from switch to ADO fuel due to Hurricane Beryl”. The letter outlined three power plants and their likely operations once the New Fortress Energy floating storage and regasification unit (FSRU) was relocated to prevent hurricane damage. These were the South Jamaica Power Company, the JPS Bogue 114MW combined plant and the NFE Jamalco power plant.

Of the three power plants mentioned in the letter, NFE Jamalco, was unable to switch to ADO fuel at this time and the JPS Bogue 114MW combined plant had “five days of storage available at the station”. Please note that The New Fortress FSRU ceased operations at midday on July 1, 2024 and resumed operations at approximately 9:00 pm on July 6. This would mean that LNG supply was disrupted for five days. The data above, gleaned from JPS’s July 1 letter and from my own sources, when put together suggest that one power plant would have used ADO fuel for a period of five to six days in the worst-case scenario. It would also suggest that the cost for this switch to ADO fuel would be passed directly to the customers who were supplied by this plant over this specific period. The JPS has gone on record multiple times to state that the fuel rate is among the reasons that customers are seeing a noticeable hike in their JPS bills.

What does not compute is that a five-day switch to ADO at one power plant translates to a 32 per cent hike in the JPS fuel rate and this rate being further applied to all customers. How Come?

This would not only be inequitable but would also raise considerable concerns for me as minister into the billing practices of the JPS and the oversight being given by the OUR into the JPS’s practices. I have, with guidance from technical personnel and Petrojam, received reliable guidance which suggests notable errors in the calculations used during this billing cycle. I have urged the JPS to recalculate the bills issued during this cycle and have asked the OUR to probe the matter further. If you think I was determined regarding a particular British citizen and his visa, then you have no clue how fixated I am regarding this matter.

I urge the incoming JPS President and CEO Hugh Grant to use this débâcle as the perfect opportunity to demonstrate his leadership and commitment to his customers and the Jamaican people. His presence in the worst-affected areas and his insistence upon JPS meeting deadlines have been refreshing in these most challenging times and it would be a shame for this unfortunate series of events to be the hallmark of his commencement at the helm of the utility provider.

—
Daryl Vaz is the Minister of Science, Energy, Telecommunications & Technology as well as the Portland Western Member of Parliament