The Editor, Sir:

I wrote previously about the morality of surcharging consumers of the JPS for expenses which should be borne by that company, as franchise holders for the public supply of electricity. The only response to that letter was a telephone call of congratulation from a lady consumerwith a beautiful voice.

The fact of the matter is that, in applying for the franchise to supply electricity to the public, the suppliers must present details of proposed operating costs, forming the basis of tariff charges to consumers. The derived tariff structure will take account of all cost factors with provision for adjustments, to costs that are subject to material uncontrollable fluctuations e.g. generating fuel.

Charge to the consumer

The charge to the consumer will include a margin above actual cost factors as profit to the supplier and may incorporate an element to compensate for probable changes in the cost of living. It may happen that the generating capacity of the supplier could become inadequate because of an excess in demand and in order to meet this excess, may result in the purchase of energy from outside sources. To the extent that the purchase price for outside supply may exceed the supplier's cost, that excess may be passed on to the consumer (not the full cost of purchase).

In the instant case, the Jamaica Public Service Company Limited, with the consent of OUR, appears to be imposing an illegal cost on the consumer.

Insurance charges for fire and allied perils, which include loss occasioned by windstorms, earthquakes, flooding etc., which are generally accepted business expenses, would be automatically included as elements of cost in the franchise application and, therefore, be a part of the tariff passed on to consumers.

It appears that the JPS decided to discontinue the payment of insurance premiums to professional insurers and to carry the risk itself. This cost saving was not passed on to the consumers and would benefit the supplier at the consumers' expense, should there be no insurable loss occurrence. Unfortunately, the company suffered damage from an act of God and has passed on the risk, which it took upon itself, to the hapless consumer, who had no say in the matter, as the OUR failed to regulate his interests.

There is no indication of the amount JPS expects to recover, but having regard to the possibility of probable damaging frequent acts of God, the prospects are frightening.

LET US PRAY!

O merciful father, protect us from the travail laid on us, thy humble servants, by your agent, the purveyor of light, the Jamaica Public Service Company Limited. We beseech thee O Lord to hold strain, so that we will be spared the damages of your acts which you see fit to impose on your universe from time to time, as your prophet the JPS is prone to the imposition of outer darkness and powerlessness, even unto the offspring of generations yet unborn.

May light dawn on your disciple, OUR so that guidance may be given to the JPS, to act with goodness and mercy in its dealing with us, thy chosen people, to thine honour and glory - Amen.

I am, etc.,

W. S. RICHARDSON

Shortwood Road

Kingston 8