“It
is a major victory, because the claimants have been able to break the monopoly
licence”
Attorney-at-Law Hugh Wildman
representing CURE during victory over JPS Co
It
seems a bit of history has occurred on Monday July 30th 2012, a two
(2) days before Jamaica launched into our Jamaica 50 Celebrations on Wednesday
August 1st 2012AD and Monday August 6th 2012AD, which
Minister of Education, Youth and Culture Lisa Hannah said was a success as
stated in the article “Hanna says Ja 50
celebration was a success”
I’m
not referring to our successes at the Olympics, as is evidence by our medal
tally as stated in the article “Grenada,
Jamaica real Olympic winners, study shows”, published Wednesday, August 15,
2012 BY VERNON DAVIDSON, The Jamaica Observer.
This
event is also as historical as the rate declines in the Telecom Sector that is
now being regulated by Interim Telecom Regulator the OUR (Office of Utilities
Regulation) as stated in my blog
article entitled “OUR's
JA$5.00 Cross Network Flat Rate ratified by Judge Ingrid Mangatal - GOJ's Telecoms Tax applied and Digicel's
victory in FTC Case assured”.
Rather,
it has to do with the fact that we the Citizens of Jamaica have liberated
ourselves from the Monopoly called JPS Co (Jamaica Public Service Company) as
stated in the article “JPS licence not exclusive,
court rules”, published Tuesday, July 31, 2012 by Paul Henry, The Jamaica Observer and “Court
rules JPS exclusive license not valid”, published Monday July 30,
2012 4:42 pm by Barbara Gayle, Justice Coordinator, The
Jamaica Gleaner!
The
victory of CURE (Citizens United for the Reduction of the cost of Electricity),
represented by claimants Dennis Meadows, Betty Ann Blaine and Cyrus Rousseau
over JPS Co in the Supreme Court is the other big story in the Media that may
have been smothered by the Olympics and the Jamaica 50 Celebrations.
Thus
its significance is lost upon most Jamaicans as it is a historic occurrence,
being as it heralds the coming of competition in the Distribution of
Electricity in the Electricity Sector in Jamaica via a legal argument that
challenged the validity of the JPSC Exclusive Electricity Distribution License.
The
group, whose lead attorney Hugh Wildman matched wits with QC (Queen’s Council)
Michael Hylton, argued against the validity of the JPS co twenty (20) year
license granted in 2001AD based on Section 3 of the Electric Lighting Act of
1890. This piece of legislation does not allow for any one Electricity Producer
to have exclusive rights to distribute Electricity in Jamaica and is actually
based on a similar legislation from England.
Thus
it calls into question the powers of the OUR, as the OUR’s ability to regulate
and all other Acts of Law that give the OUR power to Regulate Electricity in
Jamaica, all of which were based on the Electric Lighting Act. This would bring
into question all regulatory work done by the OUR, an arm of the GOJ
(Government of Jamaica) and bring to question the Minister of Energy,
Telecommunications and Mining, Phillip Paulwell, who had signed the 20 year
license for the JPS Co.
In
short, Supreme Court Judge Bryan Sykes decided to avoid the long drawn out
investigative argument to look back into history at the OUR as well as previous
Ministers of Energy, Telecommunications and Mining signing of JPS co Licenses
and declared the License invalid. Justice Supreme Court Judge Bryan Sykes
summary judgement sums up best, quote: “That is not what Section 3 [of the
Electric Lighting Act of 1890] in my view, intended. The exclusive licence to
JPS did that. The minister does not have the power to grant a licence upon
terms that bars the possibility of any other person entering the market for
transmission of electricity. The term of JPS' licence granting it exclusive
right to transmit electricity is not valid.”
JPS
Co’s Lawyer QC Anthony Hylton is set to appeal the judgment of Pusine Judge
Bryan Sykes as stated in the article “JPS to
appeal Supreme Court ruling”, published
Tuesday July 31, 2012 10:41 am, The
Jamaica Gleaner.
The
ruling not only means that JPS Co has to accept competition via energy Sector
Liberalization, but also continue making losses to theft of Electricity and
Distribution inefficiencies in their Power Grid. Not to mention the JPS Co and
the GOJ having to pay the legal expenses of CURE! Interestingly too Minister
Phillip Paulwell was cleared of any wrongdoing, mainly due to the fact he made
the decision on the advice of his well-paid Advisers on matters relating to
Electricity Generation and Energy.
It’s
good to note to his credit, Minister Phillip Paulwell was in Korea negotiating
with majority shareholder in JPS Co Korean Company EWP (East West Power) as
stated in the article “Paulwell
reacts to JPS court ruling”, published Tuesday July 31, 2012 8:40 am
by Jerome Reynolds, The
Jamaica Gleaner.
His
reaction to the development was that this would bolster his move to step up the
liberalization of the Electricity Grid to allow for competition in the
Distribution of electricity. That is, after he got back home and got his wits
about him and read Supreme Court Judge Bryan Sykes ruling and how it impact on
the JPS Co’s twenty (20) year exclusive Distribution License.
Curiously
enough, one of his Advisers on Energy matters, Dr. Carlton Davis, who is also
the head of the LNG Steering committee that chose Contractor Samsung C&T
Corporation of Korea for the Floating Regasification Terminal and LNG Plant
construction as stated in my blog
article entitled “Samsung
C&T Corp of Korea secured for LNG Regasification Plant and Pipelines -
Jamaican Contractors to benefit from National Project to Secure Jamaica's
Energy Future”, has gone bonkers!
For
some strange reason at the Tuesday August 14th 2012AD Gleaner
Editor’s Forum, Dr. Carlton Davis declared that a properly regulated monopoly
on Electricity Distribution is best for Jamaica as stated in the article “Monopoly is
best”, pDaraine Luton, Senior Staff
Reporter, The Jamaica Gleaner.
Dr.
Carlton Davis received much criticism from HOD (Head of Department) of the
Management Studies at UWI (University of the West Indies), Dr DensilWilliams,
who said his arguments were, quote “flawed” as stated in the article “Williams
flays Davis over power distribution monopoly comment”, published Wednesday
August 15, 2012, The
Jamaica Gleaner.
Dr.
Carlton Davis comments prompted Opposition spokesman on Energy Gregory Mair to
question the PNP-led GOJ’s position on the Liberalization of the Electricity
Grid, to which the GOJ re-affirmed it’s commitment as stated in the article “Government
says it's committed to competition in energy sector”,
Published Wednesday August 15, 2012, The
Jamaica Gleaner.
To
their credit despite the rantings of Dr. Carlton Davis, JPS Co has been making
strides towards making their Power Grid more efficient by upgrading their
Analog Metering Facility to a Digital Smartmeter Facility that is capable of
Remote Billing as explained
in my blog article
entitled “JPS Co New
Digital Meters are all Smart Meters - Winsome Callum's A Simple Twist of Fate” and my Geezam blog
article entitled “JPS Co Analog Meter upgrade heralds Remote Billing Revolution”.
Customer suspicious of JPS Co should take
relief in the fact that the Digital Meter higher accuracy due to having no
mechanical moving parts results in the higher bills, albeit JPS Co’s
back-billing is questionable as noted in my blog
article entitled “JPS Co
cleared on Digital SmartMeters but chastized on 10-year backbilling - Future
Plans from the Penguins of Madagascar”.
For what it’s worth, the whole process of
Energy Sector Liberalization was started by Energy Minister Clive Mullings when
the JLP (Jamaica Labour Party) was in power, despite at first seeming to
support the JPS Co as noted in my
blog article
entitled “Minister Clive Mullings retrogade step on Energy
Sector Liberalization - JPS Co's Monopoly An Inconvenient Truth”
But in an about face then Energy Minister Clive
Mullings implemented changes that would see the introduction of Net Billing to
Jamaica and advantages for AEPP (Alternative Energy Power Providers) to sell
power to JPS co’s Grid as stated in my blog
article entitled “Ministry
of Energy Clive Mullings alters the JPS Co License for Energy Sector
Liberalization - Jamaica and The Sun Salutes You”.
Minister of Science, Technology Energy and
Mining Phillip Paulwell has since followed through with his ambition for Energy
Sector Liberalization as stated in my blog article
entitled “Phillip
Paulwell wants Full Energy Sector Liberalization – JPS Co’s Dan Theoc holding
on to his Hard” and the Geezam blog
article entitled “JPS Co to build Jamaica’s first Gas Turbine Power Plant in
St. Catherine”.
The Telecom Sector was Liberalized under his
watch back in 2001AD. He has since made Net Billing a part of the Energy Sector
Landscape, with himself being one of the first eleven (11) applicants for the
facility that allows owners of Alternative Energy Gear to make money by selling
Excess power to JPS Co as stated in my blog article
entitled “Phillip
Paulwell makes Net Billing official with 11 licenses issued - JPS Co invited
via Mavado's Come Round a Mi Yard”.
With AEPP (Alternative Energy Power Providers)
such as Canadian
Solarmon Energy Corp and American-Based Green RG as stated in the article “Solamon
Energy Corp & Green RG invest in Jamaica's Alternative Energy Future - Let
the Cheaper Energy Hunger Games for Latin America Begin”
coming to Jamaica, Minister Paulwell with the introduction of Net Billing has
begun to lay the groundwork for them to compete.
Lower
electricity rates will encourage other FDI (Foreign Direct Investors) to come
to Jamaica that have high energy demands. Companies such as Oregon-based
all-electric Vehicle Manufacturer Porteon as explained in my blog
article entitled “Porteon
to manufacture All-Electric Vehicles in St. Lucia - Strengthening CARICOM ties
with Jamaican Skilled Labour”.
Ditto
too an increase in Call Centers as noted in my blog
article entitled “Convergys
and Aegis Communications Call Centers Coming – FDI powered Call Center
Renaissance in Jamaica thanks to our Good English” and “Digicel cuts 120 Call Center Jobs - Fullgram
Solutions to benefit as Antonio Graham speaks of an AEPP future by the Ocean”, which
usually have high energy demand and thus need lower Electricity Rates to be
viable in Jamaica.
Add
to that the fact that the GOJ is trying to be more efficient in its use of
electricity as stated in my blog
article entitled “GOJ and
Government Ministry's Energy Usage - Senator Audley Shaw and the Langoliers” as
being done by the Ministry of Labour and Social Security as stated in my blog
article entitled “Ministry
of Labour and Social Security JA$9 Million Energy Savings - Mad Money for Happy
Workers”.
The
GOJ is even looking for ways to cut back on usage of Electricity by
streetlights, many of which are still on even after night is over as noted in
my blog
article entitled “Alternative
Energy Contract for JPS Co Streetlight Upgrade Coming - JPS Co Winsome Callum's
Bourne Supremacy”..
I make note of these examples of the GOJ’s
efforts to curb its appetite for Electricity to make the point that is also
benefits the GOJ and the country as a whole. This as lower electricity rates
help to attract investors otherwise wary of the high cost of utilities. The
jobs created for Power Engineers is only a very small side benefit as noted in my blog
article entitled “Senator
Phillip Paulwell chooses LNG over Coal - Power Engineers in Steven King's
Graveyard Shift”
A necessity as Jamaica is facing the prospect of a worsening
Economy based on estimates from the PIOJ (Planning Institute Of Jamaica) as
stated in “PIOJ
offers tentative economic forecast ... After getting March quarter estimate
wrong” “Europe
on the edge of recession” .
There is now the very real possibility of a Fourth Recession
coming from the EU (European Union) as prognosticated in my blog article
entitled “EU,
USA and the Second Recession - Economist Dennis Chung's Andromeda and The Long
Night”. This despite a debt deal being reached in the Fourth Quarter of
2012AD to bail out Greece and by extension the EU as stated in my blog article
entitled “EU
Debt Deal Reached on Wednesday October 27 2011 - Austerity measures for
sustained Recovery”.
Throw
in the fact that Peak Oil is scheduled to occur in 2015AD as stated in my blog article
entitled “Alternative
Energy and the Caribbean - Peak Oil in 2015 and The Day After Tomorrow” and
the possibility of China Real Estate Bubble
bursting as prognosticated by London
based journalist Gwynne Dyer article “Brace
for China's impending crash” . Thus Energy Sector Liberalization is a MUST before
2015AD in what will be Minister Philip Paulwell Bourne Legacy
(2012): Saving Jamaica from a
Fourth Recession.
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