The Office of Utilities Regulation (OUR) has expressed concerns over the decision of the Jamaica Public Service Company (JPS) to schedule increases in electricity bills over several months.
The JPS has said with the hardships consumers are facing, it will only pass on part of the expected increase in bills due to higher oil prices, this month.
Some consumers see it as relief, but the OUR, says it may not be.
On Monday the JPS said it would hike electricity bills by just over 4% this month, instead of the required 10%, because of higher oil prices.
The company said the rest of the increase would be scheduled in upcoming months when oil prices start to trend downwards.
But the OUR says it is uncomfortable with the JPS deciding to phase in the delayed price increase when oil prices get lower in the future.
In a release Tuesday the regulator said that "while the JPS' decision may be a relief now" it could mean adverse consequences for consumers in the future since "there is uncertainty in the movement of oil prices".
The OUR says if oil prices continue to rise and the JPS is either unable or unwilling to continue delaying the normal increases, it could result in "a rate shock" for consumers when electricity costs are eventually adjusted to reflect the true price of oil.
The regulator further warns consumers that if oil prices do decline, they will not see the benefits on their bills, because at that time, the JPS will be asking them to pay the costs which are now delayed.
And seeing that, the OUR asks, how long will the JPS continue to defer hiking electricity bills when oil prices rise; and at what price of oil will the JPS stop delaying price hikes.
The OUR also wants to know how the deferred costs will be dealt with for persons who create new accounts after this month.
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