Damion Mitchell, Assistant News Editor

Chairman of the Jamaica Public Service Company (JPS) Tomofumi Fukuda is warning that the local energy sector could collapse if urgent measures are not implemented to diversify the industry.

Fukuda was speaking at a press conference yesterday as the JPS sought to convince the public that its request for an overall average 23 per cent increase in light bills was justified.

According to Fukuda, the JPS, which is the major electricity provider, cannot be sustained with oil as the major source of energy.

He said this was among the reasons the light and power company was seeking an average 23 per cent increase in electricity bills.

The company wants the money to invest in expansion projects and to help to make it more efficient.

Based on the proposed tariff adjustments, persons who use less electricity would pay a smaller increase compared with larger users.

Bankruptcy

According to Fukuda, the JPS came close to bankruptcy in August last year when oil prices reached record-high levels.

Since then, the prices have dropped, but Fukuda says the JPS is not yet in the safe zone.

"Jamaica depends on oil more than 95 per cent," he said.

"When oil prices come back, we would see the same situation that we had last August. We really have to change this!"

In its rate-adjustment application, the JPS is asking the Office of Utilities Regulation to calculate the non-fuel charges at J$85 to US$1.

This is $12 more than the ratio up to last year.

The JPS is also reporting that in the last five years, it only recorded profits in the two years when there were no hurricanes.

It says theft continued to be a major problem, accounting for $4 billion in losses last year alone.

damion.mitchell@gleanerjm.com

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