Private Enterpise vs. Public Interest

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Re: Private Enterpise vs. Public Interest

[ QUOTE ]

an smaddy haffi sign di paper fi agree to di lift off of di equipment

[/ QUOTE ]
That somebody must be getting paid to sign the paper...
Still, I wonder where is the watchdog?

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Re: Private Enterpise vs. Public Interest

Team to probe blackout arrives today
published: Wednesday | August 9, 2006



A team of Canadian and United States experts will be arriving in the island today to conduct investigations into the all-island power outage last month.

The team comprises members of the 2003 U.S./Canada Task Force, which was established to investigate a similar incident which affected New York in the U.S., and Ontario, Canada. The team members are: David McFadden, Tom Rustler, Dr. Frank Massado, Chris Mock and Dr. Jon Carr.

Engineering causes
Information Minister Senator Colin Campbell said the experts would begin investigations on the technical and engineering causes of the blackout. The team will also probe administrative and regulatory aspects of the Jamaica Public Service Company's (JPS) operations.

The investigation is expected to last one week.

On July 15, homes and businesses islandwide were plunged into darkness for hours as a result of a systems shutdown, according to JPS initially.

Two weeks later, JPS reported that the blackout was triggered by a fault on the high-tension transmission line from Bogue in Montego Bay to Duncans, Trelawny.

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Re: Private Enterpise vs. Public Interest


$300m tourism investment for Ocho Rios
published: Friday | August 11, 2006


Rainforest Arial Trams, a Miami-based outfit that operates forest-based eco-tourism and adventure attractions in Central America and the Caribbean, is to take a 50 per cent stake in a similar facility planned in the hills overlooking the Jamaican north-shore tourist town of Ocho Rios, one of the developers, Horace Clarke, confirmed yesterday.

"We have just signed an MoU (memorandum of understanding) with them," Clarke, a one-time Jamaican Cabinet Minister, said. "They have a number of similar types of attractions, so they will bring expertise to the project."

Awaiting NEPA ruling

Clarke and his partner, the Ocho Rios-based water sport operator, Mike Drakulich, using a vehicle called Mystic Mountain Ltd., have leased 97.3 acres of land from two Government agencies - Jamaica Bauxite Mines Ltd. and the Urban Development Corporation (UDC) - for the project and are now awaiting a ruling from the National Environment Planning Agency (NEPA) on their environment impact assessment to start the development.

The NEPA board was to review the environmental impact assessment (EIA) on Wednesday. Clarke, last night, said the environmental watchdog had approved the permit.

"After we have got our permits and we put the finance in place, it will take us one year to put the facility in operation," Clarke said.

The investment is estimated at US$4.5 million (J$292.5 million), he confirmed.

Documents filed by Mystic Mountain with NEPA, indicated that the aim of the investors is to tap into the growing number of tourists, especially on cruise liners, who come to Jamaica and not have enough to do. Most of these cruise passengers land in Ocho Rios.

For instance, of the 2.5 million tourists who visited Jamaica last year, 44 per cent were on cruise liners and 70 per cent of those landed in Ocho Rios. Nearly 300,000 stopover tourists also stayed in the Ocho Rios area. Nearly half of the tourists who come to Jamaica are below the age of 35 and increasingly seeking experiences other than sun, sea and sand holiday. In recent years a handful of adventure-type attractions have emerged to tap into this market, but apparently not enough, especially in the face of plans for additional cruise pier development in Ocho Rios and the coming on stream of new hotels.

Attractions

The Mystic Mountain project will include triple chair lift ride, just above the treetop canopy, to a look-out point more than 700 feet above sea level; a 3,300 feet bobsled coaster run; a 2,000 harnessed thrill ride at 50 miles and more than mile long nature trail, including over wooden walkways, suspension bridges and elevated platforms. There are also plans for an Olympic village, displaying memorabilia and medals from Jamaica's sporting performances, but also taking advantage of tropical Jamaica's unusual participation in the bobsled competition at the winter Olympics, immortalised by the movie, Cool Runnings.

Clarke said that much of the engineering had been done, which would would make it easy to move ahead once his company gets the go-ahead from NEPA. "A substantial amount of work has been done," he said.

The EIA commissioned Mystic Mountain held the project will have negligible negative impact on the natural environment and will in some respects lead to an improvement in the natural forests, areas of which had been under threat from degradation because of a lack of management.

"We are committed to acting in concert with the environment," Clarke said. "Our partners have a track record in this regard."

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Re: Private Enterpise vs. Public Interest

Complete overhaul recommended for JPS
published: Saturday | August 26, 2006

Investigations by the second team of Canadians looking into the July 15 all-island blackout have revealed that a complete and comprehensive overhaul of the generation, transmission and regulatory regime governing electricity production and distribution may be the solution to the nation's power outages.

The revelation came during a briefing with Phillip Paulwell, Minister of Industry, Technology, Energy, and Commerce (MITEC), yesterday.

<font color="green">Lightning caused blackout</font>
Preliminary reports from the first team of Canadians confirmed statements from the Jamaica Public Service Co. Ltd. that lightning was the cause for the blackout.

However, according to a release from MITEC yesterday, the second team emphasised that, in addition to the forensic investigation being undertaken to determine the immediate cause of the blackout, the regulatory regime that governs the power sector is being carefully examined to determine the extent to which legislation, effective regulation and industry best practices can affect Jamaica's electricity industry.

The Canadians, who are from the firm Gowling Lafleur Henderson LLP and Rusnov &amp; Associates Limited, arrived in the island on August 9 and carried out their investigations up to August 15.

They left the island yesterday but the group is scheduled to return within three weeks to continue investigations.

A preliminary report is to be submitted to Minister Paulwell by October 31 and a final report on November 30.

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Re: Private Enterpise vs. Public Interest

Power competition for dummies
By Robert F Evans
Sunday, August 27, 2006

One has to turn back but a few pages in the book of Jamaica's history, to learn how competition in a utility area can bring immense benefit to the consumer. I refer, of course, to Cable and Wireless, the one-time monopoly, whose rates dropped so dramatically in the face of competition.

Its primary competitor, Digicel, entered into the market five years ago and has made service more affordable to a great many Jamaicans.

The "Digicelisation" of JPS
The increasing rates and declining service from the incumbent monopoly, Jamaica Public Service (JPS), must encourage Jamaicans to desire to see the "Digicelisation" of electricity provision in this country. This is no pipe dream: competition in electricity provision has been in vogue for years in the first world. Let me give you the 'Power Competition for Dummies' version of how it works.

Four elements make up the process - generation, transmission, distribution and supply
JPS currently purchases power from other generating entities and sells it to consumers. For example, they buy from the Wigton Wind Farm at less than 6 US cents per kilowatt hour (kwh) and resell that power at over 24 cents per kwh. It could be argued that they are charging some 18 cents per kwh to bring that power to your meter. Perhaps it was no great surprise when it was recently on the news that Wigton is coming under financial stress.

I understand, though, that because Jamaica's prime time for power demand is at night (when Wigton does not produce), it is at that time they would really require power. Some renewable entities overseas overcome this challenge by using excess power to pump water uphill to a reservoir and, when not producing energy, release the water to produce hydroelectric power.

What is happening now, however, is not competition in generation. How the real contest works in deregulated jurisdictions is that virtually any company can advertise rates and feed that power into the grid. Anyone can subscribe to Company X. In reality, one does not necessarily get Company X's power; what one gets is Company X's rates.

The purchaser, of course, pays additional amounts for transmission, distribution and supply. If Company X is oversubscribed it has to purchase power from its rivals to meet the demand. (So why can't I have Wigton rates by day and JPS rates by night?) For generation, all these companies do is produce and sell electricity - nothing else.

Transmission
Now for transmission. This aspect of the supply chain is the business of connecting directly to the power generators and moving the electricity at high voltage on high towers or poles around their designated franchise area. We could, in Jamaica, have three franchises for transmission - one for each county. The counties would be interconnected, so as to compensate for shortfalls in any zone. The disadvantage is that you tend to be stuck with the one franchise holder for your county.

This is not true competition, of course, but with three entities side by side (barring cartelisation), the regulator could better manage the process. Through interconnection, Cornwall could purchase power from Middlesex or Surrey through the transmission system. These companies operate and maintain their high voltage network and collect a fee for all power passing through their system - nothing else.

The distribution network is the wiring from the transmission line to the pole near your home. For example, one could run a pole line into a large community of say 1,000 houses and connect to the transmission wires on the main road. Again, we do not have competition here, because in Jamaica we are stuck with a single provider. But if there were ten distribution companies islandwide, regulation would be commensurately simplified. These companies operate and maintain the wires that bring the electricity from the transmission line to your gate - nothing else.

Supply
Supply is the final link in the chain. The supplier is the entity that provides you with a meter and connects the distribution line to your home or business. Obviously, there can be many suppliers within a zone and here true competition is possible because you need not have the same supplier as your neighbour.

This company operates and maintains your connection to the distribution system, meters your electricity and collects the money to pay for its services plus the distribution, transmission and generation.

Who is buying and selling is not as complex as it may appear. The solution is similar to interconnection in the telecommunications industry.

This is a big money business with room for local entrepreneurs. JPS' gross revenue for 2004 was about J$30.4 billion. If competition causes a reduction in costs then perhaps a reasonable estimate of the current electricity market demand could be $24 billion annually. The pie chart shows that, at that scale of revenue earnings, the business of generation is worth $12 billion; transmission $1 billion; distribution $7.2 billion and supply $2.2 billion.

Telecommunications services can be provided through the electricity network by optimising the use of the wires. By so doing, the costs to the consumer could be reduced.

Philip Paulwell has done well for Jamaican consumers by smashing the telecommunications monopoly, and his 2006 budget presentation indicates awareness that electricity must follow. His announcement of duty waivers on certain renewable energy appurtenances and promulgation of a net metering policy signals his own appreciation of the circumstances.

If Jamaica does not take the path all the way down the road of deregulation of both electricity and water - a well-known road worldwide - and quickly too, then perhaps we are "Dummies".

(Robert Evans is an engineer working in the construction sector).

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Re: Private Enterpise vs. Public Interest

Thumbs down for OUR
published: Wednesday | August 30, 2006
Yahneake Sterling, Staff Reporter


The Office of Utilities Regulation (OUR) has received a highly unfavourable rating for its customer service performance, a survey commissioned by the OUR shows.

Its ratings are lower than the very utility companies it regulates, the data revealed.

According to the study which was conducted by Psearch Associates Ltd., on a scale of one to five, with five being the highest, the OUR received ratings of between one and 2.45. All the utility companies monitored by the OUR received ratings above three, with the lowest being 3.03.

Trying to help customers
The survey revealed that customers were pleased with the fact that the OUR was trying to help customers with their problems. However, they accused the regulatory body of not doing enough to help customers; not inspecting meters properly; granting bill increases; protecting companies instead of consumers and not ensuring that consumers receive good service from utility providers.

When contacted, David Geddes, director of consumer and public affairs at the OUR, told The Gleaner that his division would be implementing a raft of procedures to address the experience that consumers have when they contact the OUR.

Noting that the OUR was the final stop for customers, Mr. Geddes said, "There will be an escalation of calls. When customers call the OUR, if they are not satisfied with the point of contact, the call will be passed on to the supervisor, the manager and even me as the director until we can address their issues."

"One of the basic things will be education. The public needs to understand what they come to the OUR for and what the OUR can do."

The survey also found that persons in the low-income brackets were least aware of the existence of the OUR and its role.

Expanded its presence
To reach these customers, Mr. Geddes said the OUR has expanded its presence on radio as the programme 'Ask the OUR' is now on five national stations as well as a community station in the parish of Westmoreland.

Additionally, he explained that the regulatory body will expand its quarterly supplements to all three newspaper companies as well as to community newspapers. Noting that in the past, cases have dragged on for years, Mr. Geddes said a three-month deadline for resolving issues brought before the OUR is also in effect.

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Re: Private Enterpise vs. Public Interest

<font color="blue"> Paying for the privilege...of paying your bills!
____________________________________________ </font>

NCB to charge for utility bill payments

The National Commercial Bank (NCB) last night confirmed that it will be introducing a service charge on utility bills paid at its branches in a move designed to ease customer traffic and recover some of the processing cost.

Complete Story ...

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Re: Private Enterpise vs. Public Interest

Bumping for reference