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: