By Prince Moore
The Office of Utilities Regulation says it has no application for, nor is there any current plan to increase electricity rates to strengthen the Electricity Disaster Fund, following the passage of Hurricane Beryl.
The EDF is a self-insurance fund, established by the OUR in 2004 to set aside a pre-determined sum annually for disaster occurrences.
The OUR monitors and periodically reviews it to ensure a minimum adequacy threshold is maintained.
The OUR says, at a webinar last Friday, it discussed the EDF and indicated that the Jamaica Public Service Company has submitted preliminary estimates of approximately US$26.1 million to finance recovery efforts following the hurricane. This sum, which will be subject to approval after rigorous assessment, will be taken from the EDF.
The OUR says, at the webinar it was made clear that the regulator, as is the practice after every payout, would review the EDF, post-Beryl, to ensure it is properly funded to meet future liability arising from natural disaster occurrences.
According to the OUR, that statement sparked a misinterpretation that it was currently contemplating an increase in electricity rates.
Ansord Hewitt, THE OUR's Director-General, says there is no proposal to increase customer contribution to the EDF. He says, as the economic regulator, the OUR will analyse costs associated with the recent hurricane events to ensure their legitimacy.
Mr Hewitt says the OUR will also need to examine where the payment leaves the Fund with regard to its ability to meet future claims and activate its usual consultation process with all stakeholders, to ensure transparency.
He adds that, at this stage, that analysis has not yet been done, so any suggestion of the need for an increase is premature.
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