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Management and Operational Audit of JPS

Date: May 2014
OUR | Location: Jamaica
Area of Expertise: Energy Regulation
Project Manager: Tony Woods
Contact: tony.woods@ppaenergy.co.uk

Project Description:

The objective of this project is to provide extensive and objective insights into how the major electricity utility in Jamaica – Jamaica Public Service or JPS - operates, highlight any adverse performance consequences of its current approaches and practices and to inform the country’s regulator’s  - the Office of Utility Regulation or OUR - analysis during the upcoming tariff review.

The project is expected to evaluate the extent to which the acquisition, management, deployment and financing of resources are done efficiently as well as the degree to which there are opportunities for fundamental improvement in the business of the company to the benefit of the rate payers.

It will provide the OUR with a comprehensive and global view of the operation of the company as well as specific insights into the weaknesses and strengths in its policies and practices.

Description of Services Provided

This project consisted of two phases. 

Phase 1 was focused on a Rate Case Review and was made up of a number of tasks including reviewing the revenue requirements arising from fixed assets, operations and maintenance (O&M) costs and bad debt together with an analysis of the risks that had been captured in the ROE.  Phase I included two other major components - firstly, a review of financial performance and financial management and systems  and secondly a high level review of Third Party Transactions focusing on identifying the costs of services outsourced and procurement processes.

Phase 2 of the project consisted of compliance, management and operational reviews including an assessment of current processes regarding regional customer operations, HR management, and power generation including links to IPPs and system operation. Other topics covered included a review of management and operational performance, and a comparison of Key Performance Indicators.

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