The Office of Utilities Regulation, OUR, says it has written to the Jamaica Public Service, JPS, to verify the calculation of charges which the light and power company says will result in higher electricity bills.

The OUR notes that it received correspondence from JPS regarding steep increases in fuel costs and other related charges that are expected to impact customers’ bills in the coming months.

Specifically, JPS is attributing the increases to higher prices for oil and natural gas internationally, the devaluation of the Jamaican dollar and the temporary switch from natural gas to the more expensive automotive diesel oil at several plants.

The OUR says it recognizes the potential rate shock to customers but is also mindful that costs pertaining to charges by independent power producers and foreign exchange rate movements are direct pass-through to customers.

These are provided for in the electricity licence of 2016, and as such are not subject to control by the regulator.

The OUR, however, notes that it has a duty to verify the composition and computation of such charges and how they are applied to customers’ bills.

As such, it has written to JPS requesting additional information on the rates and charges to be applied to customer categories for November and December 2021.

The entity has also requested analyses of the increases in fuel and Independent Power Producers (IPP) costs arising from the switch from natural gas to diesel and an explanation as to why some plants switched from natural gas.

The OUR says it expects to receive all requested information from JPS by December 24.