The Office of Utilities Regulation (OUR) has commenced an investigation into complaints from customers of the Jamaica Public Service (JPS) about excessively high bills.

The OUR said once the relevant information has been received and analysed, it will determine if any remedies are necessary.

This comes in the wake of complaints about high electricity bills, though customers were without power for weeks due to disruptions caused by Hurricane Beryl.

On Wednesday, Energy Minister Daryl Vaz revealed that in cases where estimated bills were sent out to JPS customers who had no supply, the JPS would cancel these bills and generate new bills representing zero consumption.

In a statement last evening, the OUR confirmed that position, indicating that it instructed JPS to reduce some customers’ bills in the next billing period and reissue those bills issued in August with zero consumption that do not show a corresponding zero money value.

The OUR said the scale and extensiveness of the JPS bill increase for August came to its attention after the utility began to dispatch the bills and customers started to complain about high electricity charges.

In 2021, the OUR communicated to JPS that it viewed any average increase in overall rates in excess of 5% to be a rate or bill shock, a situation that should be avoided.

Previously, in one-off spikes, the regulatory treatment is that the additional cost to customers was spread over several months to mitigate the effects on customers.

The OUR said pending the outcome of its investigation, it has written to JPS explaining that within the context of the current hike in electricity bills, how it was executed, and given the OUR’s responsibility to approve non-fuel and fuel rates as stipulated in schedule 3 of JPS’s electricity licence, it finds it necessary to direct the power company to reduce customer bills in September by the difference in JPS’s fuel cost in July, over June.

Additionally, the August bills with zero consumption that do not show a corresponding zero money value should be reissued.

Customers whose July to August JPS bills were higher than 5% of their May to June bills should first complain to JPS, ensuring that they provide all relevant details like the current and previous bill.

If the complaint is made via the call centre, the customer should ensure they get a reference number.

Customers should contact the OUR if they are not satisfied with JPS’s response; if they were told to pay the bill because if not their service will be disconnected; and if they do not get a response from JPS within 30 working days.

The OUR said its investigation into the August billing will include, but not be limited to an examination into the dispatch of generating plants during the period, any applicable system operating constraints (generation and transmission) encountered in the generation dispatch process during system operation in July; the basis for the substitution of automotive diesel oil for natural gas; the effect of the government tax waiver on ado pricing; and the mechanisms to minimize the rate hikes in one-off situations.

The OUR said it anticipates that it will wrap up its investigation promptly and will engage with JPS to agree on the treatment of any verifiable increases that are appropriate.