The Jamaica Public Service Company (JPS) may soon have to issue a hefty refund to its customers.
According to Irie FM, the power company has been ordered to refund almost $1 billion to its customers.
The order was given by the Office of Utilitiess Regulation (OUR) based on its findings, that the light and power company imposed the figure as foreign exchange adjustments on fuel supplied by Petrojam from March to December 2013.
The OUR says the company acted without the knowledge of the regulator.
The directive, which is effective February 16, 2015, was issued following consultations with JPS for a total of $973 million.
JPS has seven days in which to present details of how it proposes to effect the repayment including the commencement day by which the refund will be made to customers.
Customers are to be fully refunded within six months of the effective date of the directive.
The OUR had requested clarification from the JPS regarding the inclusion of a line item called “FX ADJ on Petrojam fuel” in the fuel oil statements for the relevant period.
During the period, this impacted The Fuel and IPP Charge which appears as a line item on customers’ bills.
The OUR, having received JPS’ explanation for making the adjustments, considered the matter and concluded that JPS had no authority under the existing regulatory framework to unilaterally impose the additional costs on customers.
Source: Irie FM