The Office of Utilities Regulation (OUR) has permitted an initial drawdown of US$5 million from the Electricity Disaster Fund (EDF) for the Jamaica Public Service Company Limited (JPS) to swiftly mobilise resources for restoration efforts for Hurricane Melissa.

JPS’s letter to the OUR requesting the sum explained that it has undertaken several activities, including engaging over sixty (60) linemen from the Eastern Caribbean and North America at significant cost to support restoration efforts, and the strategic placement of personnel, inventory, and equipment across key locations island-wide, enabling the rapid commencement of restoration activities.

JPS is required to provide a detailed breakdown of how the sums approved under the EDF are spent.

Immediately following the hurricane, JPS has committed to engaging independent assessors to expedite the evaluation of damage and support the claims process. 

 What is the Electricity Disaster Fund?

In the absence of adequate and affordable insurance coverage for electricity Transmission and Distribution (T&D) assets, JPS, in its 2004 rate review application, proposed a self-insurance fund—now known as the Electricity Disaster Fund—to address the gap in the insurance market.

The OUR deemed the request prudent and approved the establishment of the self-insurance fund. It was operationalised in 2008 and is funded through customers’ bills.

The purpose of the EDF is to provide funds for the restoration of service in relation to JPS’ T&D assets after a natural disaster.