The Office of Utilities Regulation’s (“Office’s/OUR’s”) Jamaica Public Service Company Limited Tariff Review for Period 2014 – 2019 Determination Notice (Document No. 2014/ELE/008/DET.004), which came into effect on 2015 January 07 (“2014 – 2019 Determination Notice”) sets out determinations regarding the tariff levels and structure for the sale of electricity by JPS for the period 2014 – 2019. Consistent with the then prevailing terms and conditions of the Amended and Restated All-Island Electric Licence, 2011 (“the Old Licence”), the tariff determined was predicated on a price cap mechanism. On 2016 January 27, a new licence was issued, entitled the Electricity Licence, 2016 (“the New Licence”), which made fundamental changes in the regulatory framework and the methodology for the calculation of tariffs and annual adjustments. The most notable change is the provisions for the use of a revenue cap approach instead of the price cap mechanism.
The New Licence also stipulates a 2016 July implementation date for annually adjusted rates determined under revenue cap. However, the New Licence does not explicitly address how the transition from price cap based tariff regime to a revenue capped adjustment is to be effected.