THE Jamaica Public Service Company's "amended and restated" All Island Electric Licence has so many features affecting consumers that the JPS should publish the relative sections as part of its consumer education programme. The media has not given much coverage to the licence which affects so many people. There are conditions in the licence of which the general public may not be aware.

One of the conditions of the licence is that the JPS shall publish a code approved by the Office of Utilities Regulations, the regulatory body, setting out, in respect of connections, within 100 metres of an electricity distribution line and not requiring transformation, forming part of the system (local connections), its standard terms and conditions for connection together with a schedule of its charges. The code shall include a methodology indicating the principles by which the charges have been calculated.

The JPS shall also publish a code, approved by the OUR, setting out, in respect of connections, at a distance greater than 100 metres from an electricity distribution line forming part of the system (complex connection) the basis upon which charges for complex connections will be made in such detail as shall be necessary to enable any person to make a reasonable estimate of the charges to which it would become liable for the provision of a connection. The company shall prepare its charges for complex connections on a basis which is cost-reflective, including a reasonable rate of return.

On an application by any person for a complex connection, the company shall, within the periods specified, offer to enter into an agreement to connect that person to the system on fair and reasonable terms and at charges consistent with its published code for complex connections and shall simultaneously notify the person of the procedure to be followed in the event of a failure by the company and the person to agreed terms. There are many more conditions under the section "Duty to connect".

The section ,"Charges and terms and conditions for the supply of electricity" states, among other things, the JPS shall save where it enters into special contracts with customers for the supply of electricity pursuant to section 14 of the OUR Act, charge its customers for such a supply according to published tariffs, approved by the OUR, as dated from time to time. Such published tariffs should be cost-effective unless otherwise directed by the OUR. Each tariff category will apply uniformly across the island and there will be no discrimination to customers on the tariff charged, based on location. In accordance with policy directives issued by the minister, the OUR may require JPS to provide a concessional or lifeline tariff for residential customers in such a manner that will not compromise the allowed revenue across retail customer classes served by the company.

Under "Price controls", the licence states in part that the prices to be charged by the JPS in respect of the supply of electricity shall be subject to such limitation as may be imposed by the OUR. The JPS shall publish the statement of the terms and conditions related to duty to connect, and its scale of tariff in such places and by such methods as will bring them to the attention of the greatest number of its actual and potential customers and make its terms and conditions available to customers on demand.

Under "Price controls" the JPS is subject to a number of conditions, including the prices to be charged in respect of the supply of electricity which shall be subject to such limitation as may be imposed from time to time by the OUR; the accounts and records of the company shall be maintained in such a manner as may be imposed from time to time by the OUR.

With respect to "Codes of Practice", the licence says that at the direction of the OUR, from time to time, the JPS shall prepare and publish codes of practice in respect of the various matters that affect customers. These would address such issues as efficient use of energy, payment of bills, disabled customers and customers of pensionable age; handling of customer complaints. Notwithstanding this, the company may issue codes of its own. In drafting codes of practice and in carrying out any review, the JPS shall consult with such bodies as the OUR may designate, from time to time, and shall have regard to any representations made by them about the code of practice or the manner in which it is likely to be or (as the case may be) has been operated. At the discretion of the OUR, from time to time, the JPS shall prepare and publish codes of practice.

The condition relating to the "guaranteed standards and overall standards" is most definitive. It says that the company shall use all reasonable endeavours to achieve the guaranteed and overall standards. Breach of the guaranteed standards shall result in the company making the applicable compensatory payment to the affected customer. The company shall give all reasonable assistance to the OUR or such person as the OUR may designate to assist it, in the monitoring of the company's performance of both standards.

There is a clause in the licence that states that the government shall have the right to acquire the JPS electricity undertaking at the expiration of the term of the licence, that is July 8, 2027, under certain conditions.

It seems to me that the OUR will have a tremendous task to see that the conditions of the licence are met. Consumers also have a role to play.

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