JPS President and CEO Michel Gantois
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Michel Gantois
The Jamaica Public Service Company (JPS) is warning that Jamaica's supplies of oil could be cut off as a result of the Russia-Ukraine conflict.
The company's president and CEO, Michel Gantois, says if the war escalates or the European Union decides to suspend gas imports from Russia, this could create opportunities for oil and gas suppliers to divert supplies to richer markets, to the detriment of smaller ones.
"The EU plans to reduce its dependence on Russian gas by two-thirds. It's a huge volume. They may therefore tap energy markets from suppliers that normally provide gas to countries like Jamaica, so the effect may be long lasting," he warned.
Mr. Gantois said while New Energy Fortress and Petrojam are confident with their supply of fuel, he is not comforted that supplies will be maintained in a worst case scenario.
"We reminded them that in times of war, legal and contractual niceties quickly evaporate, and the only certainty you have is the fuel you have physically in storage on the island."
As a result, the JPS head has encouraged the government and local fuel suppliers to secure existing supplies and identify alternative sources.
He said commercial or industrial customers should also consider investing in projects and assets that use less energy.
To ease the pressure on consumers who have been faced with high electricity bills following the recent surge in oil prices, he has suggested the government suspend the fuel tax.
Addressing energy poverty
Mr. Gantois has also called for the government to provide electricity benefits under a social security programme as a means of reducing electricity theft and its effects on energy cost.
He said for the last few years, electricity theft has accounted for 18 to 20 per cent of all electricity generated and costs Jamaica around US$200 million per year in fuel and lost revenue.
Mr. Gantois believes that a social safety net programme would help to combat genuine energy poverty.
"As long as people cannot afford to wire their house or to pay for electricity, or as long as they will not fear the wrath of a judicial system coming after them, we will not solve the theft of electricity. Energy poverty alleviation must be included in the social security net and we need strong enforcement of the rule of law," he suggested.
Still, the JPS boss argued that deterrence only works if enough offenders are caught and prosecuted. But given the "pervasive occurrence of electricity theft," he noted that Jamaica's court system would be overwhelmed.
For this reason, he believes a special court should be established for mass processing of utility offences.
Additionally, Mr. Gantois wants the government to help with house wiring and certification, arguing that the cost is a barrier to customers going on to the grid legitimately.
He called for a ban on the use of incandescent bulbs, which he said are cheap, wasteful and preferred by those who steal.
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