JPS Explains Higher August Bills, Cites Fuel Charge and Exchange Rate as Main Factors

Kingston, Jamaica: In response to growing concerns from customers regarding a noticeable increase in their electricity bills, the Jamaica Public Service (JPS) has issued a statement to clarify the factors contributing to the higher charges and address the issue directly.

In a press release issued this evening, JPS acknowledged that many customers may have experienced a rise in their electricity bills for the July to August billing period, even though their electricity usage remained consistent with previous months.

“The main components which cause customers’ bills to either go up or down include Energy Charges set by the Office of Utilities Regulation (OUR), the amount of electricity that customers use, and additional components including the Fuel Charge and the Billing Exchange Rate, which may change monthly,” JPS explained.

The utility company pointed out that the recent increase in bills is primarily due to a significant rise in the Fuel Charge, alongside a slight increase in the Billing Exchange Rate.

– The Fuel Charge on August bills was $32.172 per kilowatt hour (kWh), up from $24.335 per kWh in July.
– The Billing Exchange Rate also saw a minor increase, moving from $156.30:1 in July to $157.53:1 in August.

**Understanding the Fuel Charge Increase**

JPS further elaborated that the Fuel Charge, which appears on customers’ bills, is heavily influenced by the actual costs associated with purchasing the fuel used to generate electricity. This month, the Fuel Charge spiked due to unforeseen circumstances that required the utility to switch fuel sources.

**Use of Automotive Diesel Oil (ADO)**

As a precautionary measure against potential hurricane damage, New Fortress Energy, the supplier of Liquified Natural Gas (LNG), had to temporarily take its gas facility offline to protect it from harm. This led to a necessary switch from LNG to the significantly more expensive Automotive Diesel Oil (ADO) to fuel the electricity-generating plants for several days. The resulting higher costs were reflected in the increased Fuel Charge on customers’ bills.

Despite the challenges, JPS reassured customers that it remains committed to transparency and will continue to provide information and clarity. The company emphasized its ongoing efforts to deliver reliable and high-quality service to all its customers.