JPS and NWC continue to pay huge sums for breaches

Durrant Pate/Contributor

The Office of Utilities Regulation (OUR) is reporting a 6 per cent jump in complaints to its office during the second quarter of 2024 in comparison to the previous quarter.

The OUR’s Consumer Affairs Unit (CAU) received 778 contacts, with the most significant increases being in the categories of irregular supply (120 per cent), poor service quality (71 per cent), and disconnection (10%). The National Water Commission (NWC) with 296 or 38 per cent of these contacts and the Jamaica Public Service Company (JPS) with 265 or 34 per cent were the utilities generating the highest number of contacts. 

They were followed by Cable & Wireless Jamaica (C&WJ-Flow) with 80; Columbus Communications (Columbus-Flow) with 78 (10 per cent); Private Water & Sewerage Service Providers and Other (Not Utility Provider Related, e.g., cable service) with 39 (5 per cent) and Digicel Jamaica (Digicel) with 20 (3 per cent). 

Billing matters dominate complaints

Billing matters, at 47 per cent, remained the main reason utility consumers contacted the CAU, although there was a seven-percentage point decline compared to the preceding period. Billing matters included those pertaining to high consumption, disputed charges, adjustments to customers’ accounts, and estimated billing. 

NWC and JPS accounted for the highest number of billing-related matters with 193 (25 per cent) and 122 (16 per cent), respectively. Columbus-Flow, C&WJ-Flow, Digicel, Small Water/Sewerage Service Providers, and Other/Not Utility Related (e.g., cable service) accounted for the remaining 50 (6 per cent).

Guaranteed Standards breaches

JPS and NWC continue to pay huge sums for breaches of the Guaranteed Standards (GS), with over $48 million paid out by both providers during the quarter. JPS’s compliance report on its GS performance for the review period indicated that 18,234 breaches were committed, a 16% decrease when compared with the preceding period. 

These breaches attracted compensatory payments of $40.1 million, all of which were applied automatically to the affected customers’ accounts. The NWC’s Guaranteed Standards compliance report revealed that 2,852 breaches were committed, a 7 per cent decrease when compared with the preceding period. 

These breaches had potential payouts totalling $15 million, while actual payments amounted to $8.1 million, or 54 per cent of the total potential payments. These payments were made by automatic credits to affected accounts. 

Payout for breaches

The remaining 46 per cent of total potential payments not made include those breaches for which the required claim forms were not submitted for validation by the affected customers.

In addition, through the OUR’s direct intervention, $1,446,118 was secured for utility consumers. Of this amount, JPS and NWC accounted for $689,784 (48 per cent) and $654,026 (45 per cent), respectively. The remaining $102,308 (7 per cent) was shared between Columbus-Flow (6 per cent) and C&WJ-Flow (1 per cent), while $534,259 (37 per cent) of the total credits secured were recorded during the reporting period.

They were applied to customers’ accounts by the service providers in previous periods.