Click on the links below to view the Schedules for Electricity Rates approved by the Office of Utilities Regulation:
ELECTRICITY RATES KEY INDICATORS
As a regulated utility we cannot establish our own electricity rates. Your electricity rates are determined by a range of factors outside the Company’s control. The key indicators influencing your electricity rates are:
- JPS Energy Rate
- Fuel & IPP (Independent Power Producers) Charge
JPS ENERGY RATE
The Energy (or non-fuel) Rate on your bill is fixed by the Office of Utilities Regulation (OUR) after comprehensive reviews of the Company’s tariff structure. This rate only changes when there is an annual adjustment, or a rate review. The last comprehensive review was done in 2009 and the next such review is due in 2014.
JPS is also a customer, and we are equally impacted by rising costs; especially increases in world oil prices and price increases from our electricity suppliers. But we cannot independently increase energy rates. If a rate adjustment is being sought to offset inflation, the Company must apply to the OUR. Application for a rate adjustment can only be made once per year, and if granted, is known as the Annual Inflation Adjustment.
HOW ENERGY RATES ARE SHOWN ON YOUR BILL
Residential customers will notice two energy rates on their monthly bill:
- Energy 1st, which is the rate for the first 100kWh of electricity used; and
- Energy Next, which is the rate applied to electricity usage above 100kWh
FUEL & IPP CHARGES
For information on the monthly Fuel & IPP Charges, click here
The Fuel & IPP Charge on your bill combines two costs:
- The cost of fuel used to generate electricity
- The cost of the electricity supplied by Independent Power Producers (IPPs)
Fuel cost is by far the greatest contributor to the Fuel & IPP Charge. We need approximately 20,000 barrels of oil each day to meet the daily electricity demands of our customers island-wide. The company must purchase this oil at world market prices which may vary each month. IPPs supply us with more than one-third of the electricity we sell to customers. This portion of the Fuel & IPP Charge however is usually very small – less than one percent.
The IPPs which sell electricity to JPS are: Jamaica Energy Partners (JEP), Jamaica Private Power Company (JPPC), Jamalco, and Wigton Wind Farm.