Justice Brian Sykes says JPS Co exclusive license invalid - Energy Sector Liberalization CURE and Bourne Legacy for Phillip Paulwell

“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 30^th 2012, a two (2) days before Jamaica launched into our Jamaica 50 Celebrations on Wednesday August 1^st 2012AD and Monday August 6^th 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” Published Wednesday August 15, 2012, The Jamaica Gleaner.

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 14^th 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”, published Wednesday  August 15, 2012 by Daraine 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” Published Wednesday August 22, 2012 by Steven Jackson, The Jamaica Gleaner and “Europe on the edge of recession” Published Wednesday August 15, 2012, The Jamaica Gleaner.

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” Published Sunday March 18, 2012, The Jamaica Gleaner. 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.