OUR explains how fuel costs can affect JPS electricity bills

The Office of Utilities Regulation says customers could see movements in their Jamaica Public Service electricity bills if fuel prices rise on the international market because of the current crisis in the Middle East.

In response to a customer query about whether JPS can absorb the increase, the OUR said some expenses faced by utility providers are not fully within their control. It pointed to global fuel prices and the foreign exchange rate as examples of charges that can move up or down based on market conditions.

The regulator said those items are treated as direct pass-through costs to electricity customers. That means consumers may feel the effect when the costs increase, but they should also benefit when those same items fall.

The OUR said Jamaica has been advancing its fuel-diversification efforts, with natural gas now serving as the main fuel source. It said that shift should help reduce the effect of higher fuel prices on household and business electricity charges.

The regulator also said it is concerned about the burden on consumers and is engaging JPS on ways to ease the impact of fuel-related increases on bills. It said customers will be kept informed as the issue develops.