Generation 2000

Generation 2000 (G2K) the young professional affiliate of the Jamaica Labour Party says it is in full support of today’s Black Friday protest as a result of consistently very high electricity bills to consumers from the Jamaica Public Service Company Limited.

G2K says it has written to Energy and Mining Minister the Honourable Clive Mullings asking him to consider including the following four recommendations into the terms of reference for a possible Commission of Enquiry:

• A review of the sale of the JPS to Mirant in 2001 by the previous administration
• A review of the purpose and powers of the Office of Utilities Regulation (OUR),as it frankly appears that the Regulator is a monumental failure
• An assessment of the JPS’ Complaints mechanisms and review of the the monopoly’s Executive management team
• A look at the revolutionary and Jamaica's first ever long term National Energy Policy tabled in Parliament over a year ago by former Energy and Mining Minister James Robertson. The very commendable National Energy Policy serves to achieve by 2030 “a modern, efficient, diversified and environmentally sustainable energy sector providing affordable and accessible energy supplies with long-term energy security and supported by informed public behaviour on energy issues and an appropriate policy, regulatory and institutional framework”.

G2K said that ever since the controversial sale of the Jamaica Public Service Company in 2001 by the previous administration the Jamaican consumer has been pummeled by very high electricity rates that rank among the highest in the world.

G2K pointed out that former Prime Minister and Opposition Leader Edward Seaga expressed very serious concerns about the then proposed sale of the Jamaica Public Service Company.

See February 2001 Gleaner report below.

Nb. G2K President Delano Seiveright and other executive members are currently on a political visit in China.

Jamaica Gleaner

15 February 2001

Seaga demands answers on JPSCo sale

JAMAICA LABOUR Party leader Edward Seaga is calling on the Government for transparency in the soon-to-be-finalised divestment of the Jamaica Public Service Co. Ltd., to Mirant Energy Inc. of the USA.

To this end, he urged the Government in a television broadcast on Tuesday night to table the JPSCo. agreement for divestment in Parliament before the sale is completed. This, he argued, would "enable the country to be fully informed and to raise any questions necessary."

Describing the JPSCo. as the "most important asset owned by Government", Mr. Seaga said the negotiations had taken place entirely in secret, "ignoring many important areas and leaving critical questions to be answered".

Electricity rates had been a burden to consumers and a serious handicap to the competitiveness of Jamaican manufacturing industries, tourism and agro-industry, he said.
The JLP had repeatedly stated that because Jamaica had the second highest electricity rate in this region, any divestment of the power-and-light company should be only to a firm which has the technology to lower electricity rates significantly, he said.

But Mr. Seaga said that this had not been done. "The purchasers of JPSCo do not possess any such credible technology. Hence we are about to lose, once and for all, any possibility of reducing the substantial burden of high rates leaving the way open for cheaper imports from countries with lower electricity costs and closing the door to Jamaican exports by failing to reduce our cost of production to competitive levels. The vital opportunity to revive the sick manufacturing sector is about to be lost".

Mr. Seaga said that according to the agreement the purchaser was to invest US$500 million over the next 10 years in new generating capacity, and asked what penalties were built into the agreement to enforce it.

Also, he asked whether there were provisions to require the JPSCo under the new ownership to give access to the company's transmission lines to other new generators of power in the future.
"Because of the secrecy and lack of information", Mr. Seaga said, "the JLP calls on the Government to table the JPSCo agreement for divestment in Parliament before the sale is completed to enable the country to be fully informed and to raise any questions necessary".

http://jamaica-gleaner.com/gleaner/20010215/news/news5.html

For more information contact:

Delano Seiveright
President
Telephone: 809-2906

Collin Virgo
General Secretary
Telephone: 388-6165

Marlon Morgan
Chairman, Public Relations, Communications and Policy
Telephone: 369-0127