The Office of Utilities Regulation (OUR) on Thursday (May 11) said that the Jamaica Public Service has submitted its 2023 Annual Tariff Adjustment application for its review which will see a 0.8 per cent increase for residential customers and 0.2 per cent for commercial customers.
According to the OUR, other commercial and industrial customers could see reductions above 2.3 per cent, if JPS’s proposal is accepted.
2023 Annual Revenue Target (ART)
JPS’s 2023 Annual Revenue Target (ART) is J$55.084 billion. The performance and growth-related adjustments being sought by JPS to the 2023 ART include the following:
- An Annual Growth adjustment factor of 39.54 per cent relative to the 2022 approved revenue cap of J$38.78B;
- Volumetric performance adjustment of positive J$0.23B;
- System losses performance adjustment of negative J$0.49B;
- Foreign exchange surcharge of positive J$0.99B;
- Net interest expense surcharge of positive J$0.15B.
The OUR said that the annual tariff adjustment request seeks to realign electricity rates based on the Performance Based Rate-making Mechanism (PBRM) specified in the Licence.
JPS’s proposed performance targets for 2023 include revisions to the Quality of Service (Q-Factor), Thermal Efficiency (Heat Rate) and System Losses performance.
JPS application is currently under review and the OUR is set to make a public disclosure on its decisions on JPS annual adjustment application.