First Look

OUR amends rates based on JPS’s revised data



Office of Utilities Regulation | 2015-04-22 00:00:00

The Office of Utilities Regulations (OUR) has amended its recent determination of rates for the Jamaica Public Service Company Limited (JPS) because of errors in the data the company provided to the OUR in its tariff submission. The amendments which took effect on March 1, 2015, are contained in an Addendum which outlines the revised rates issued by the OUR. The Addendum can be found on the OUR’s website.

Subsequent to the issuance of the Determination Notice on January 7, 2015, the JPS pointed to errors it had made in the billing data submitted in its tariff application on April 7, 2014. The company requested that the rates flowing from the approved Revenue Requirement be amended to reflect the correct billing data.

In order to ensure that the company recovers the OUR-approved Revenue Requirement, the OUR revised the Rate Schedules. The Revenue Requirement, which translates to a 0.96% reduction in the average non-fuel rate, remains unchanged. However, the rates, which are determined based on the application of the revenue requirements and the demand data provided by JPS, were adjusted to account for the revised data.

The overall bill impact (fuel and non-fuel) of the revised rates when compared to the reference month of February 2014 will see the average typical rates to residential customers (Rate 10) falling by 0.1% ; small commercial customers (Rate 20) falling by 0.1% and industrial customers (Rates 40 and 50) falling by 2.9%.

The OUR will conduct an audit of the energy demand data and it has reserved the right to adjust the non-fuel rates in the event there is a material difference between the audit results and the revised data submitted by JPS. Consequent on the OUR’s consideration of the revised data submission by JPS, the Office issued the amended Determination which became effective on March 1, 2015. Following this, JPS confirmed in a letter of January 26, their intention to compensate Rate 10 customers for excessive charges due to them as a result of the errors which led to an over recovery of revenue. 2

In its response to the OUR’s Determination Notice, JPS on January 13, 2015 suggested that there was “an error in the computation of the energy revenue for Rate 10 customers and that, based on the OUR’s determined tariffs, will not allow JPS to recover the determined revenue requirement of J$41,570,355,652 (excluding the EEIF [Electricity Efficiency Improvement Fund])”. The OUR requested that JPS advise if there were errors in their submissions and for them to explicitly indicate what they were and how they were made.

The explanations offered by JPS could only verified by conducting an extensive and detailed audit which time did not allow at that stage. The OUR utilized the revised data submitted on January 29, 2015 and recomputed the tariff to take into account the apportionment of the energy demand for residential customers.

Find The Addendum to OUR rate Determination at www.our.org.jm
http://www.our.org.jm/ourweb/sectors/our-issues-determination-notice-jps%E2%80%99-tariff-application-2014-19
 

Please see Attached Pdf file below




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