JPS workers uneasy about decision on company's licence, but customers happy

 

The Union of Clerical, Administrative and Supervisory Employees (UCASE), which represents workers at the Jamaica Public Service Company (JPS), is raising concern about the announcement by the government that it will not renew the licence of the power company when it expires in 2027.

 

The government says renewing the all-island electricity licence for the JPS under the current terms would place the country at a disadvantage. 

 

Speaking with Radio Jamaica News, UCASE President Vincent Morrison said the announcement is causing jitters among JPS workers. 

 

"We have some concerns. We are going to call a delegate's meeting to hear the matter and discuss fully. But we have some immediate concerns. We think the statement is very wide.... Is it going to be a government takeover? Is this the policy of the government going forward, taking over business? 

 

"So we believe that a meeting with not only the management of the JPS, but a meeting with the minister is absolutely important going forward. There are too many questions that are needed to be answered. Jobs are very important going forward. A lot of workers are employed to the Jamaica Public Service, and we would want to know exactly what is the final position of government going forward in this matter," he contended. 

 

Mr. Morrison warned that the government is also sending a bad signal to investors.

 

"We think the announcement of how it was done is very bad for industrial relations. It's bad for business, as I said earlier, because...I don't think the government should be giving the impression that this is their new policy as it relates to private investment," the UCASE president argued.

 

President and CEO of the JPS, Hugh Grant, has expressed concern at the government's announcement. 

 

Mr. Grant said the development has several implications for the energy sector and for the country in general. He added that the JPS leadership, shareholders and legal teams will review the implications while engaging key stakeholders.

 

The wider business community has welcomed the government's decision, but energy consultant Owen Gunning, President of the Jamaica Society of Energy Engineers, believes it is not feasible for the government to take over the licence of the JPS. 

 

And as the government weighs its options, one energy consultant believes a revenue cap and a financial buffer should feature heavily in upcoming negotiations for a new power distribution licence. 

 

President and Chief Executive Officer of the Jamaica Energy Partners Group and Country Manager for InterEnergy, Dr. Wayne McKenzie, believes this will help to shield customers from the kinds of losses suffered under the current terms. 

 

"So the leverage that JPSCo have in terms of how much debt they can have on the company is something I believe anybody who is going to be operating the company needs to change. I think the leverage could change. The losses, I don't think we should be transitioning losses to the rate-payer. And whatever they do to fix it, becomes bottom line cash to the company as well," he reasoned. 

 

Dr. McKenzie, who was a guest Wednesday on the Morning Agenda on Power 106 FM, said there must be a holistic, impartial, consultative and transparent process heading into the new energy licence agreement.

 

 

Despite not knowing which power company will replace JPS, some customers are welcoming the government's decision, citing years of frustration and dissatisfaction with the country's main power provider.

 

"Jamaican people is suffering a long time, you know. So it's no problem for us to get a different light and power company because the light bill we are paying is too high.... So if we can get a change, it would be very good for us," said one customer. 

 

"They are working from solar energy, so how is it that that level of innovative thinking has not gone down to the consumer?" another questioned. 

 

A third customer declared: "For years, we have been complaining about JPS and the cost of energy. So if it is that they are going to be renegotiating a new licence, hopefully, it's for a more favourable rate for the Jamaican consumers."