The Office for Utilities Regulation (OUR) says it has no request for, and no current plans to increase, electricity tariffs to bolster the Electricity Disaster Fund (EDF) in the wake of Hurricane Beryl.

“The FED is a self-insurance fund established by the OUR in 2004 to set aside a predetermined amount annually for disaster events. OUR monitors and reviews periodically to ensure that a minimum threshold of adequacy is maintained,” the regulator said in a press release.

Last Friday, OUR in a webinar discussed EDF and indicated that Jamaica Public Service Company Limited (JPS) has submitted preliminary estimates of approximately $26.1 million to fund post-hurricane recovery efforts. This amount, which will be subject to approval after a rigorous evaluation, will be taken from the EDF.

“At the webinar, it was made clear that the OUR, as is the practice after each payment, will review EDF, after Beryl, to ensure that it is adequately funded to meet future liability arising from natural disaster events. That statement has given rise to a misinterpretation that OUR is currently considering an increase in electricity tariffs,” the statement said.

Reacting to recent public comments, OUR managing director Ansord Hewitt said: “We have no proposal before us to increase the customer contribution to EDF. As an economic regulator, OUR will review the costs associated with recent hurricane events to ensure their legitimacy. Of course, we will also need to examine where the payment goes from the fund in terms of its ability to meet future demands and activate the OUR’s usual process of consultation with all stakeholders to ensure transparency. At this stage, that analysis has yet to be done, so any suggestion that an increase is necessary is premature.”

The OUR added, “Electricity tariffs are not arbitrarily increased as the Electricity Licence, 2016 provides clear guidelines on how and when such matters are considered, including in the consideration of tariff applications by JPS, which are due annually or every five years”.

The opposition National Party, in a statement Monday, said it strongly opposes OUR’s proposal to increase consumer contributions to the FED, in light of JPS’ request for $26 million from the fund to cover hurricane repairs.

Phillip Paulwell, the party’s shadow minister for energy and climate change, called for greater transparency from the OUR and JPS, stressing that consumers deserve a clear and detailed explanation of the basis for this request and the justification for any increase.

“I think consumers have a right to a transparent process where the details of the claim are disclosed,” Paulwell said. “I also do not support an increase in consumer contributions to the disaster fund at this time. The Jamaican people cannot continue to bear the brunt of every financial shortfall in the energy sector,” he said.