Jamaica Public Service Company Limited Electricity Wheeling Framework - Determination Notice

An amendment to the Amended and Restated All-Island Electric, Licence 2011 (the “Licence”) in August 2011 included, among other things, a provision for the wheeling of electricity across the national grid. The main objective of this new provision is to encourage greater competition in the electricity sector.

Condition 12 of the the Licence stipulates that the Jamaica Public Service Company Limited (“JPS”) should within a 12-month period, which ended in August 2012, submit to the Office of Utilities Regulation (“OUR”) proposed wheeling charges for approval. According to the provisions of the Licence, these wheeling charges should be based on a cost-of-service study conducted by the company within the 12-month period prior to the stipulated date for the submission of the wheeling tariffs for approval. JPS made a rate submission but the application failed to satisfy certain critical criteria, such an analysis informed by a new cost-of-service study.

Against this background, the OUR proceeded to conduct a Cost-of-Service Study, and developed the electricity wheeling framework, which involved consultations with JPS and other key stakeholders. The OUR was supported by consultants PPA Energy (the “Consultant”). The OUR met with stakeholders and two public consultation meetings were held to ensure that the issues pertaining to wheeling were fully aired and feedback received as to how best to shape the framework.

This Determination concludes the conceptual developmental phase of wheeling, and sets out the decisions made with respect to the main features of the framework and the methodologies applicable for the construction of wheeling charges.

Document Type: 
Determination Notices