David Geddes, spokesman for the Office of Utilities Regulation, says consideration is now being given on how to deal with unclaimed JPS refunds. - File

The Jamaica Public Service Company Limited (JPS) still has a $192 million liability carrying on its balance sheet since 1998, which the company said are the unclaimed refunds on accounts that were overcharged up to that year.

Under direction from the Office of Utility Regulation (OUR), JPS had created a period to make restitution to customers, which elapsed March 31, 2006.

The company says it is now awaiting instructions from the regulator on how to deal with the $192 million that is unclaimed.

Due refunds

Dan Theoc, JPS's vice-president of finance and corporate controller, said some of the customers due refunds had not come forward despite public notices, and could not be located.

Speaking at JPS's annual general meeting Thursday at its head office in New Kingston, Theoc said it was left to the OUR to determine how the company should treat it.

On the flip side, JPS is also to recover $100 million it overpaid on refunds.

Prior to an OUR recommendation, Mr. Theoc is theorising that based on the statute of limitations, the $192 million could become statute barred this year since the debt is bieng carried since 1998.

Statutory limitations dictate that a person cannot legally enforce a debt which has passed six years.

Director of Consumer and Public Affairs at the OUR, David Geddes, told Sunday Business the issue was under consideration, noting however, that it hardly made sense to offset the amount against customer accounts since it would amount to mere cents off the bills, given the size of JPS's customer base.

"It is before the office but a decision has not been made because it pre-dates the present ownership, and it could be a liability to government," Geddes said.

"I wouldn't want to pre-empt the office, but we had indicated that after this year, we would make a decision."

An OUR official close to the matter commented that the $192 million are not funds set aside waiting to be paid out in refunds. He confirmed that this was a liability of the Government passed on to Mirant who acquired majority shares in JPS in 2001.

Theoc said no interest would have accrued on the funds, saying it was never considered customers deposits which attract interest.

In 1999, a determination was made by Parliament that JPS should reimburse customers approximately $2.9 billion that had been over-recovered for fuel during 1993 to 1998.

Based on a formula agreed on with Government and the OUR, rebates were made to active accounts in a programme that began in February 1999.

susan.gordon@gleanerjm.com