The Fair Trading Commission (FTC) has dismissed proposals by the Jamaica Public Service Company (JPS) for a guaranteed level of revenue each year.
The proposal is included in the application of the JPS to the Office of Utilities Regulation (OUR) for a rate review. It seeks for the utility company a guaranteed non-fuel revenue of $50 billion annually over the next few years.
However, the FTC is contending that a revenue cap will lessen the incentives for the JPS to establish the best rates for consumers.
The Commission, which made the comment as part of the assessment of the JPS’ request for a review of its charges, also slammed the power company’s plan to cut electricity costs for its largest customers.
The consumer protection agency said introducing a wholesale rate to encourage its largest customers to remain on the grid is inconsistent with the proposal to replace its price cap with a revenue cap.
It also did not support the JPS’ request for its rate review to be done every three years rather than the current regime of every five years, arguing that this change would likely frustrate the ability of the OUR to monitor and evaluate the JPS.
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FTC opposes annual guaranteed revenue for JPS
