'Unfair and unreasonable' OUR says JPS' 41-day billing cycle breaches service terms

Saturday, September 13, 2008

THE Office of Utilities Regulation (OUR) yesterday described as 'unreasonable and unfair', the Jamaica Public Service's (JPS') use of a 41-day cycle to bill hundreds of its customers for the months of July and August, saying the company's actions violate its service terms and conditions.

As a result, the regulatory body has ordered the light and power company to reduce the billing period for the actual and estimated bills for the affected accounts and demanded that the customers' services not be disconnected for any outstanding balance between now and December 31.

The OUR has also demanded that the JPS provide, within seven days, a detailed account of the circumstances that led to the issue of the bills reflecting the extended period.

"Having reviewed some of the complaints, the office has concluded that JPS has breached the conditions of the JPS All-Island Electricity Licence, 2001 by issuing bills for a period in excess of the time approved by the OUR," the OUR said in a press release issued late yesterday.

"The OUR is also of the view that JPS' actions in this matter are unreasonable and unfair to its customers regarding their cash flow and budgeting; while, at the same time, giving JPS an advantage with regards to its own cash flow," the OUR added.

Yesterday's announcement came amidst outcries from hundreds of customers that the company had sent them bloated bills for the months in question that they were unable to pay.

Customers complained that their bills doubled and in cases quadrupled over the period, even as the price of oil on the world market continued to fall. One woman was reported to have received a bill of more than $400,000 - several thousands more than the $2,229 she should have been charged.

Several disgruntled customers also held peaceful protests outside the company's Montego Bay, Portland and Portmore branches earlier this week, demanding that the company provide an explanation regarding the significant increases.

Yesterday, the OUR also demanded that the light and power company "provide a method for calculating the adjustments to the bills that will reflect consumption levels for the fewer days at the fuel rates which were applicable for that period".

Said the OUR: "The approved bill format, based on actual readings, for issue in the next billing period, should be accompanied by a bill stuffer explaining the meaning of the line items for the necessary adjustments."

In addition, the OUR asked the JPS to:

. Provide a list of all affected customers and their geographical locations;

. Ensure that no estimated bills are issued for a billing period exceeding 30 days as of November 2008; and that

. As of January 2009, at least 99 per cent of bills based on actual readings will not exceed a billing period of 31 days.