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Stabroek News



Payback time - Utility companies to automatically repay consumers for breaching standards
published: Wednesday | October 22, 2008

Arthur Hall, Senior Staff Reporter


Bryan … We have been trying to educate our consumers far more as to what these standards are so that they can make their claims when companies breach them. - Rudolph Brown/Chief Photographer

The Jamaica Public Service Company (JPS) could soon be forced to compensate its customers when it fails to meet some guaranteed standards, even if the customer does not submit a claim for the money.

The JPS and the National Water Commission (NWC) have been pocketing millions of dollars which should have been paid to customers for breaches of guaranteed standards.

But the Office of Utilities Regulation (OUR) has decided that "enough is enough".

"What we did in the last tariff review for the NWC was to revise some of the standards for automatic compensation. So if you were disconnected wrongfully, the NWC is required to automatically compensate for that disconnection," Garfield Bryan, head of the complaints unit at the OUR, told a Gleaner Editors' Forum yesterday.

Similar approach

Bryan said a similar approach will be taken when the JPS tariff review, due for July 2009, takes place.

But not all the standards will be automatic and consumers will still have to claim compensation for some of the breaches, Bryan added.

The OUR's increased stridency follows repeated reports showing that the utility companies have been keeping millions of dollars which should have been paid to their customers.

Last year, the JPS reported that it committed 64,000 breaches of the guaranteed standards attracting potential compensation of approximately $173 million.

Pocketed money

However, JPS customers submitted claims for only $400,000 or less than one per cent of the amount that should have been paid out, leaving the company to pocket the rest of the money.

It was a similar story for the NWC which reported 50,000 breaches of the guaranteed standards with a potential payout of $53 million. However, the company only paid out approximately $15,000.

"We have been trying to educate our consumers far more as to what these standards are so that they can make their claims when companies breach them," Bryan said.

Some NWC guaranteed standards:

1) No disconnection of supply where bills are paid.

2) Restore supply within 24 hours after payment of overdue amount.

3) First bill to be issued by 48 working days after connection.

4) Maximum of 30 working days to install meter on customer's request.

Some JPS guaranteed standards:

1) New service installations within five days.

2) Response to emergency calls within six hours.

3) Urban reconnection within one day after payments of overdue amounts.

4) Rural reconnection within two days after payments of overdue amounts.

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