LNG tax not expected to noticeably impact electricity bills – Tomblin

President and CEO of Jamaica Public Service Company (JPS), Kelly Tomblin, has indicated that the Government’s recent decision to apply a tax on liquid natural gas (LNG) will likely not have any noticeable impact on customers’ bills.

Speaking on Nationwide Radio on Thursday, Tomblin said: “Nobody likes something to be taxed, but when we look at the tax, it looks small - and, of course, we know that any increase does impact the customer - but in the scheme of things, it does look not substantial. So we are continuing to do the calculations. I don’t think it will be something - if we work together - that should be largely noticeable at the end of the day.”

While indicating the arrival of the first two shipments of LNG since the JPS recently completed the conversion of its Bogue power plant in Montego Bay to use both diesel oil and LNG, the JPS boss took the opportunity to clarify reports that suggested that a significant rate increase is being sought by the power company.

She said while the JPS has asked the Office of Utilities Regulation (OUR) for a 10 per cent increase to its annual revenue target, that request should not be read as the company actually asking for a significant rate increase. She said the company is, in fact, seeking only a one to two per cent increase in electricity rates from its consumers.

The OUR is expected to complete its review and make a determination on the JPS’ application by July 3.

Tomblin said she believes Jamaicans will appreciate that the funds are needed to further invest in the company’s infrastructure.