JPS moving to refinance debt

The Jamaica Public Service Company (JPS), is moving to refinance more than $20 billion  of  its debt.

As part of  its Extraordinary Rate Review application to the Office of  Utilities Regulation (OUR), the JPS proposed to refinance US$179.2 million   of  its existing long term debt to reduce the interest rate from 11 per cent to 8 per cent per annum. 

The company says the refinancing would translate into savings of US$ 5.37 million  per annum for the remaining three years of  the life of  the debt.

Given the benefits to customers, the OUR agreed to approve the refinancing initiative under which it is allowed US$2.7 million  or half  of  the amount requested by the utility company to cover costs provided that it pursues its refinancing plan.

The benefits accrued from the refinancing will be channeled to customers through an expected lowering of JPS's annual revenue target in the next two annual reviews by at least US$3.4 million   per annum.

NWC - biggest electricy consumer

Prime Minister Andrew Holness says the National Water Commission (NWC), is still the biggest consumer of  electricity in Jamaica.

He notes that the high electricity usage is part of  the reason the Water Commission's current business model is unsustainable.

Holness who was speaking on Monday at the opening of  the 27th annual Caribbean Water and Wastewater Association Conference and Exhibition in Montego Bay said there are plans to reduce the NWC's electricity bill:


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