A Jamaica Public Service technician removes wires illegally connected to the company's grid.

Last year JPS lost just over US$28 million ($4.3 billion) through electricity theft.

This pushed the amount paid by legitimate customers to cover electricity theft from 17 per cent to 17.91 per cent.

This was revealed on Tuesday by minister with responsibility for electricity Daryl Vaz, who admitted that the illegal extraction of power from JPS was on the increase.

Vaz was responding to questions from his Opposition counterpart Phillip Paulwell during the sitting of the House of Representatives.

Asked to state the total amount of technical and non-technical losses experienced by JPS, Vaz said, “In the documentation provided by the Office of Utilities Regulation (OUR), it was outlined that in 2023 the Jamaica Public Service Company experienced technical losses amounting to 7.67 per cent and non-technical losses of 17.91 per cent.”

Non-technical losses are those related to electricity theft and the JPS licence allows the company to recoup this from its paying customers.

When asked to state the dollar value and percentage of electricity that is stolen from the JPS distribution system, Vaz again turned to documentation provided by the OUR for 2023.

“The dollar value of electricity stolen from the JPS distribution system was US$28,197,648.00, representing 19.82 per cent of the total electricity distributed,” said Vaz as he noted that technical and non-technical losses by JPS are paid for by its paying customers.

Vaz pointed out that these costs are reflected as part of customers’ electricity billing cycle under technical and non-technical losses.

He noted that under technical losses JPS customers cover the extra fuel costs through that charge on their bills.

“The extra operational and maintenance expenses resulting from technical losses are included in the non-fuel portion of the bill,” said Vaz.

In the case of the non-technical losses, Vaz said these are recouped by JPS through the energy and demand charges, which are adjusted annually based on the company’s performance in the previous year.

Responding to the question as to what is being done to reduce the amount of electricity that is stolen, Vaz said his ministry is in the process of securing the Cabinet’s position and directive to address and implement strategies aimed at tackling this problem.

He said that plan will be structured around four key pillars designed to reduce electricity theft at the macro level.

According to Vaz, the four pillars are:

* Empowerment: Focusing on providing communities with the tools and resources they need to acquire legal electricity, making it more accessible and affordable for all.

* Enforcement: Strengthening legislation and regulations to effectively deter electricity theft, with an emphasis on improving monitoring and penalties for non-compliance.

* Energy efficiency: Encouraging the use of energy-efficient appliances and removing access to inefficient lighting like incandescent bulbs to reduce overall electricity demand.

* Communication: Building stronger relationships and trust between key stakeholders, with the goal of shifting the culture away from non-payment and illegal usage towards responsibility and payment compliance.

Vaz explained that at the micro level the energy ministry plans to undertake detailed analytical assessments to accurately quantify non-technical losses at the medium voltage feeder level, targeting specific communities with historically high non-technical losses.

“This data will inform tailored technical solutions specific for each high-loss area, allowing for a more precise and effective reduction of electricity theft,” said Vaz.

In follow-up questions, Paulwell asked the minister if he was aware of a private member’s motion which he tabled in the House of Representatives with recommendations as to how to reduce electricity theft.

When Vaz said he was unaware and asked to be provided with a copy so they could discuss it, Paulwell told him the document was tabled nearly three-and-half years ago and was item number eight on the order paper.

Paulwell pointed out that, while there was an increase in the amount JPS customers have to pay because of the increase in electricity theft, the company was, at the same time, making bigger profits.

The Opposition spokesman sought answers as to what is being done by JPS to lower the amount of theft that the consumer has to pay for.

Vaz conceded that, based on the current licence, JPS recovers everything from the consumer.

“So the fact of the matter is, whether they have a very aggressive anti-theft programme in place or not it makes no difference to their bottom line; the fact of the matter is that this is something that requires not only JPS but all of the stakeholders, including the Government, to come up with a comprehensive plan to deal with non-technical losses, which in effect is theft,” said Vaz.

He told the House that the Government is working with the Inter-American Development Bank and the World Bank to come up with solutions, but this will require significant sums.

“There is a commitment to do so, it’s a matter of finding the fiscal space,” said Vaz.