Jamaica Public Service (JPS) customers across the island can expect to see a reduction in their utility bills this month, as a result of an expected 8.4 per cent drop in the cost of electricity.
Minister of Science, Technology, Energy and Mining, Hon Phillip Paulwell, who made the announcement on Tuesday, November 11, at a Jamaica Chamber of Commerce (JCC) breakfast meeting held at the Knutsford Court hotel in New Kingston, said the reduction is the result of a decline in world oil prices.
Mr. Paulwell said this is good news for all Jamaicans.
“The price of oil is falling and the prognosis is that we will continue to see the price going down to about US$75 per barrel. The price of oil going down is good news,” he said.
In the meantime, the JPS, in a press release, said the typical residential customer will see a decrease of approximately 8.4 per cent in the November bill, compared to last month, as a direct result of the lower fuel costs being passed on to customers.
“Reduction in the cost of oil is reflected in the fuel and IPP charge on customers’ bills. The fuel and IPP (Independent Power Producer) charge on November bills is $23.365 per kilowatt-hour (kWh), compared to the charge of $26.812/kWh that was applied to bills last month,” the light and power company stated.
The fuel and IPP charge on electricity bills changes each month, depending mainly on the cost of the oil that JPS and the other power-generating companies buy to produce electricity. This charge makes up more than 60 per cent of customers’ electricity bills each month, JPS said.
The Energy Minister is, however, encouraging customers to continue their conservation efforts, despite the drop in the fuel charge.
By Athaliah Reynolds-Baker