Energy Minister Daryl Vaz has indicated that he is “concerned about the timing of the increase” in electricity rates granted recently to the Jamaica Public Service (JPS), but added there is little he can do about it because “the OUR’s [Office of Utilities Regulation] decision may be subject to review only by the OUR and by way of judicial review in the courts”.
Vaz, who was commenting publicly for the first time about the recent 1.4 per cent increase in electricity rates approved by the OUR, however, hinted to Jamaica’s House of Representatives yesterday that he was not in agreement with the increase at this time.
“It is an established fact that the COVID-19 pandemic has dealt a crushing blow to the economy of Jamaica and to many of our own Jamaican people who were already experiencing financial hardship,” he argued as he noted that, when he learnt of the increase, he reviewed the Electricity Act 2015 “to satisfy myself of any legal or other authority that may be vested in the minister to influence or defer the adjustment made to the electricity rate”.
The comments came as JPS customers have been expressing anger since the rate increase was announced earlier this month. The increase takes effect in October. It also came on the back of his Opposition counterpart, Phillip Paulwell, calling for the Government to urge the JPS to delay the increase when it was announced almost two weeks ago.
“My plea wasn’t that there is no justification in the OUR’s ruling. I did not enter the matter dealing with the legal and regulatory effect of the OUR ruling,” Paulwell pointed out. “The reason I didn’t do that is because we have created an environment where investors can feel that the rules are certain and that they are not changed midway. So my issue was not with the ruling of the OUR, my issue was based on a humanitarian and what I would regard as a conscience application of this ruling.”
“I was expecting the Government to use its moral suasion to use its influence…and all I was suggesting is for the minister to say to JPS, you don’t have to implement this increase at this time. People are suffering now. The hardship is great now and a delay will not kill the company but can kill some Jamaicans who are suffering at this time,” he added after expressing disappointment that the Government did not try to convince the OUR to defer the increase at this time.
Paulwell, pointing to the rising price of oil, which reached a three-year high of US$75 per barrel on Monday, while liquefied natural gas (LNG) is also approaching an all-time high, forecast that electricity prices will rise more than the 1.4 per cent approved by the OUR.
