Paulwell demands 'full transparency' after 7% hike in electricity bills

Opposition spokesman on energy Phillip Paulwell says the announced seven per cent electricity rate increase lacks legitimacy unless Jamaica Public Service Company (JPS) and the Office of Utilities Regulation (OUR) release details on the process.

Paulwell’s demand follows confirmation by the OUR that customers will see higher bills for November electricity consumption, an adjustment the regulator says stems from JPS’s use of more expensive fuel surrounding Hurricane Melissa.

In a statement issued Tuesday, Paulwell said JPS’s explanation raised serious questions, particularly claims that higher-cost diesel fuel was used “for some days before” the hurricane.

“JPS’s assertion that more expensive fuel was used for ‘some days before’ the hurricane is a revelation never before stated by its Chief Executive,” Paulwell said. “The JPS did not indicate the number of days during which it utilised more expensive diesel fuel. This demands immediate substantiation.”

He called on the utility to provide specific dates for the alleged decommissioning of liquefied natural gas (LNG) and renewable plants, and to clearly state which billing cycles relied on estimated meter readings.

Paulwell also challenged JPS’s reference to Independent Power Producers (IPPs), arguing that the company should not speak on their behalf. He urged IPPs to publicly explain increases in IPP fuel charges.

Turning his criticism to the regulator, Paulwell said the OUR had effectively sanctioned an opaque process.

“The OUR’s complicity in this opaque process is unacceptable,” he said.

He noted that he had warned in late October of potential “bill shocks” and had then called for the very disclosures that he says remain outstanding. Paulwell further demanded clarification on whether an offsite data storage failure mentioned by JPS impaired access to accurate meter readings.

“The burden of proof lies entirely with JPS and the OUR,” he said. “Without full transparency, the increase lacks legitimacy and places an unjust burden on consumers already under strain.”

The OUR has said the increase was influenced by a roughly 30 per cent reduction in electricity sales following Hurricane Melissa, a Category 5 storm that struck Jamaica in late October, causing an estimated US$8.8 billion in damage.

While the regulator said JPS will spread fuel and IPP cost recovery over several months to avoid bill shock, consumer groups have pushed back.

Small Businesses Association of Jamaica president Garnett Reid called the increase “unconscionable,” while Young Entrepreneurs Association president Cordell Williams-Graham warned that higher electricity costs could further strain small and emerging businesses during the recovery period.

A peeved Reid told The Gleaner yesterday that if this rate increase is implemented, Jamaicans from across the country should show strong objection by carrying out peaceful demonstrations.

This latest issue comes as the Government and the Opposition clash over the provision of a five-year loan of US$150 million to JPS to speed up restoration. JPS's licence is due to expire in 2027.

The Government currently holds a 19.9% share in JPS, whose majority shares are owned by private international investors.

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