Jamaican consumer must brace for higher electricity prices !

As more and more large customers leave the Grid ( D&G will leave it shortly), the remaining customers on the grid will be faced with higher electricity prices, this is a fact.

JPS have invested significant amount of capital in generation, transmission and distribution systems and these must also be maintained to ensure we all have the commodity, in the quantity that we need at and at the time that we need it. I think we can all agree on that.

When large paying customers leave the grid, JPS will find itself stuck with all this infrastructure that still has to be maintained and upgraded with time, to assure the integrity of the electrical supply and distribution system.

In essence what we are left with is the same pie divided amongst a smaller group of persons, which means we all have to take a bigger share of the pie, since all must be paid  for.

Now don’t get me wrong, as there are some savings to JPS as now they can run more of their higher efficiency plants and less of the least efficient plans, thus using less fuel for the electricity generation process.

JPS has tried to address this issue with its latest request for a rate increase, buy its attempt to reduce the KWH charge for large industrial customers , in the hopes that it will keep them on the grid.  This is one of the problems with deregulation, which I pointed out in an article I wrote back in 2011.

So until the 381 MW plant is on stream,  consumers can expect to see more increases coming.

Reduce your consumption to reduce your overall cost, its as simple ast that, we must change the way we do business.

 

 

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