Gov’t Urged to Fast Track Liberalisation of Electrical Grid

Opposition Spokesperson on Energy, Information and Communication Technologies, Mr. Phillip Paulwell, is urging the Government to begin negotiations with the Jamaica Public Service (JPS) to fast track the process of liberalising the electrical grid.
“This will provide greater meaning and benefit to the public and complete the process of .liberalisation of generation,” Mr. Paulwell said in his contribution to the 2010/11 Budget Debate yesterday (April 14) in the House of Representatives.
He contended that the Government is in a strong position to negotiate as the country owns 20 per cent of the JPS.
Mr. Paulwell also urged the Government to eliminate the practice of allowing generated capacities to directly pass through the fuel cost to customers. “In a more competitive environment, with the providers having the ability to interconnect reasonably to the grid, competitive pricing will be achieved with the providers being compelled to utilise improved technologies and fuel sources that relate directly to their cost,” Mr. Paulwell argued.
He also called for the implementation of a feed-in tariff system that mandates the JPS to purchase renewable energy sources at a fixed, favourable price, which may be the actual cost of supplying the energy, plus a 15 per cent premium. The move, he said, would provide an incentive for investment.
Mr. Paulwell further suggested that the Government move to finalise and implement a carbon credit policy that will provide financial benefits for renewable projects and create “many suitable jobs from the new providers of electricity.”