Shelly-Ann Thompson, Staff Reporter

THE JAMAICA Public Service Company (JPS) is the chief offender of the guaranteed service standards stipulated by the Office of Utilities Regulation (OUR), and, consequently, shares the bulk of some $50 million in penalties paid out to customers quarterly.

According to David Geddes, director of consumer and public affairs at the OUR, the JPS shares the multimillion-dollar penalty with the National Water Commission.

"Financial penalties are usually imposed when the company fails to rectify a breach," Geddes told The Sunday Gleaner yesterday.

There are 12 guaranteed service standards applied to the power company, each attracting compensation of $1,000 for residential and small commercial customers.

The light and power company usually does not attract penalties for issuing erroneous bills, as in the case of Portmore, St Catherine, where a resident last week received an incorrect bill for more than $400,000, highlighted by this newspaper.

subject to penalties

"There is a provision for human error. We expect them to issue incorrect bills, but they must remedy the matter," said Geddes. "If the company refused to correct the billing error, then they are subject to certain penalties," he added.

The payment of compensation for breaches of the guaranteed service standards is up for review next year, when the JPS submits its tariff applications. The last adjustment was conducted at the last tariff application in 2004.

The company, however, recently breached the conditions of the All-Island Electricity Licence, 2001, by issuing bills for a period in excess of the time approved by the OUR. The terms and conditions of the JPS contract stipulates that billing must be a process of approximately 30 days.

compensation order

The regulatory body ordered the company to compensate some 12,000 customers - mostly from Portmore in St Catherine, who were billed for periods of up to 41 days.

The breach became public knowledge when affected customers demonstrated at the JPS' office in Portmore. In reacting to the breach, the OUR directed the JPS to provide, within seven days, a detailed account of the circumstances that led to the issue of the bills reflecting the extended period. The company must also provide a list of all affected customers and their geographical locations.

Geddes said the JPS would work out a method of compensation and then a decision would be made as to whether the affected customers would be compensated monetarily, or the extra billing days would be subtracted from next month's bill.

The Sunday Gleaner was unsuccessful in efforts to get a response from the JPS' head of corporate communications, Winsome Callum, yesterday. However, Geddes said it would be extremely unlikely that JPS would not comply with the OUR's instruction.

JPS service standards include

New service installations within five days.

Response to emergency calls within six hours.

Urban reconnection within one day.

Rural reconnection within two days after payments of overdue amounts.

shelly-ann.thompson@gleanerjm.com