CAPRI recommends measures to cut electricity rates

The Caribbean Policy Research Institute (CAPRI) has outlined measures which, it claims, would significantly reduce electricity bills, if implemented. The recommendations are the result of  a recent study done by CAPRI. 

Lemar Nicholson, lead researcher at CAPRI, believes the rate structure, if adjusted, would facilitate lower consumption and consequently reduce the demand for oil.

The adjustment in the rate structure could be fashioned in such a way as to create an incentive and rewards for savings, he argued, while discussing the matter on RJR's Beyond the Headlines.

In that regard, CAPRI is recommending a change in the nature of the system of tiers currently used by the Jamaica Public Service Company (JPS), the country's sole electricity distributor.

Under the proposed adjustments, there would be three tiers: a first tier for consumption under 100 kilowatt hours, which would be left "constant," and another tier for 100-150 (kilowatt hours), and another tire for consumption over 150.

"Then I think we would see a situation where people are incentivised to get their consumption under 150, and that would benefit the customers and JPS," Mr. Nicholson said.
 
He added that the strength of  the measures, would depend on consumers and JPS.
    
The study looked at the factors which contribute to the cost of electricity, and outlined the developments needed for long term reduction in prices.