Condition 12 paragraph 1 of the Licence stipulates that the Jamaica Public Service Company Limited (“JPS”) shall implement an Electric Power Wheeling service for customers with an annual average demand in excess of 1 MVA in accordance with such terms and conditions as are approved by the Office. The Wheeling service shall be for firm capacity. The Licence further stipulates in Condition 12 paragraph 2 that the use of system charge, as defined in the Electricity Act, 2015 (the “EA”) shall be determined by the Office. It also indicates that JPS may prepare and submit to the Office, a cost of service study for determining the use of system charge.
It is in this context that the OUR published a Consultation Document on 2019 November 4 entitled “Electricity Wheeling Tariff Methodologies Consultation Document” (Document No. 2019 /ELE/019/CON.001) (Consultation Document) to solicit comments on the various methodologies available to the Office of Utilities Regulation (“OUR” or “Office”) for consideration in the setting of tariffs for electric power wheeling.
Having received feedback from stakeholders on the methodologies and after weighing the strengths and weaknesses of the methodology the OUR has decided on the matter. This Determination Notice sets the OUR decisions regarding the methodology that is to be applied by the JPS in calculating wheeling charges on the electricity grid in keeping with the provisions of the Electricity Licence, 2016 (the “Licence”) and the EA.