Tashieka Mair, Gleaner Writer

WESTERN BUREAU:

The Office of Utilities Regulation (OUR) says it has on its list of pressing priorities, the securing of adequate generation capacity for the island.

"Nearly five years after the prospect of liquefied natural gas (LNG) as a fuel for Jamaica was mooted, it seems that we are no further along in terms of a definitive project and decision regarding price and timing for the delivery of that fuel to Jamaica," OUR Director General J. Paul Morgan lamented on Monday.

Mr. Morgan, who was addressing the OUR's business luncheon at the Wexford Court Hotel in Montego Bay, St. James, was referring to an announcement made by former Prime Minister P.J. Patterson about a 'Least Cost Generation Plan' in 2003.

According to Mr. Morgan, the delays in the project have compromised the prospect for the delivery of cheaper electricity to customers.

Sub-optimal decisions

"We are now forced to take sub-optimal decisions regarding the addition of new capacity to the systemand, believe me, the loss to customers is real and quantifiable," the director general said. "The best we can do is to ensure that any decisions taken with regard to meeting the expected shortfall in 2008-2009 is consistent with and will complement the long-term least cost solution."

He said it was critical for the new government to articulate a clear policy on fuel and, make a quick decision in regards to LNG's future in the "energy mix".

He said: "We have taken the decision to go out now on a competitive basis, which is, by the way, open to Jamaica Public Service Company Ltd. (JPS), for new capacity; capacity we anticipate would be in commercial operation by early 2009."

Mr. Morgan stressed that he did not believe fuel oil should be a considered option for future electricity production.

"I will also state quite categorically that, in my view, the key solution to our high electricity prices is to address the cost of generation, which makes up 80 per cent of costs to JPS and must be the highest priority."

Responding to a question posed by businessman Mark Kerr-Jarrett, about the prospects of using nuclear energy, Mr. Morgan said the energy system being used currently was too small for nuclear energy and, therefore, they would stick to conventional sources.