Christmas shock for Jamaicans as light bills jump 7%

Jamaicans already feeling the squeeze are set to feel it even more, as electricity bills jump by seven per cent this December, for November's electricity consumption, the Office of Utilities Regulation (OUR) says.

"This adjustment was anticipated as JPS had to rely on more expensive fuel sources for generation because natural gas was unavailable in the period leading up to, and immediately after, Hurricane Melissa," the regulator said in a statement on Monday.

It explained that among other things, the hurricane resulted in an approximately 30 per cent reduction in sales, which it said contributed "significantly" to the increase in the Fuel and Independent Power Producer (IPP) rates.

"Together, these factors could have translated to a big hike in the 2025 November bills," the OUR said.

The OUR said that to avoid "bill shock" to customers, JPS, in consultation with the agency, has opted to defer some of the increase in fuel and IPP costs and recover it by spreading it over the upcoming months.

"Therefore, for example, the average residential customer who consumes 165kWh per month would see a bill adjustment of approximately $655 on the previous bill of about $9,000," the OUR said.

In approving the adjustment, the OUR noted that given the scale of the disaster, it could take up to six months for electricity generation costs to stabilise and for energy consumption to return to normal levels.

The regulator has urged JPS to consult with the OUR before applying further IPP and fuel charges over the next six months to ensure that customers are not faced with sudden large increases.

"The objective is to ensure gradual, manageable recovery while avoiding additional bill shock for customers," the OUR said.

The category five storm, the strongest to hit Jamaica, made landfall on October 28. It has claimed at least 45 lives and cost more than US$8.8 billion in damage.

Ahead of the system, JPS president and chief executive officer Hugh Grant warned that the storm's impact on the fuel mix for generators could result in "potential upward trends in regards to bills" as the company will have to rely on more expensive fuel sources.

The OUR's announcement comes as the Government and the Opposition clash over the provision of a five-year loan of US$150 million to the entity to speed up restoration. JPS's licence is due to expire in 2027.

The Government currently holds a 19.9% share in JPS, whose majority shares are owned by private international investors.

Energy Minister Daryl Vaz is scheduled to host a news conference on JPS' restoration efforts on Tuesday, at 10 a.m.