Abstract
The Electricity Licence, 2016 (Licence) makes provision for a review of the Jamaica Public Service Company Limited’s (JPS’) electricity rates at five-year intervals. The review process was scheduled to commence in 2019 April in accordance with the provisions of the Licence. JPS’ rate submission, received 2019 July 31, was however refused by the Office of Utilities Regulation
(OUR or Office) as it was deemed deficient, to the extent that it would not allow for a complete evaluation.
On 2019 December 30, JPS submitted a revised application to the Office of Utilities Regulation (OUR) for a review of rates, which application was accepted by the OUR for consideration (Application).
This Application is JPS’ fourth five yearly filing with the OUR, and is the first under the Revenue Cap regulatory regime, which was introduced in the Licence. The revenue cap principle looks forward at five (5) year intervals and involves the decoupling of kilowatt hour sales and the approved revenue requirement. The revenue cap principle allows for the funding of the initiatives,
which are proposed in JPS’ Business Plan, while seeking to ensure that the Licensee’s customers are not potentially overcharged for the service.
