JPS urges customers to avoid new $6,000 and $10,000 deposit requirements

The new minimum deposits for residential and small commercial customers are $6,000 and $10,000 respectively. These new deposit requirements took effect in June 2021, after remaining the same for more than ten years.

All new customers are required to pay the new security deposits. However, existing customers will only be affected if their accounts are disconnected multiple times.

Multiple disconnections

Effective June 1, 2021 if an account is disconnected two times in 12 months, the customer will be required to upgrade the deposit to the minimum $6,000 or $10,000, based on their rate category. If an account is disconnected more than two times within 12 months, the customer will be required to upgrade the deposit even further, as follows:

• Residential (Rate 10) Customers – All further deposit upgrades as a result of disconnections will be equal to the average of the last two months’ consumption value.
• Small Commercial (Rate 20) Customers – All further deposit upgrades as a result of disconnections will be equal to the average of the last three months’ consumption value.

Avoid deposit upgrade

Customers can avoid the higher security deposit by staying up-to-date with their bill payments. JPS therefore encourages everyone to pay their bills in full and on time. Customers can use the JPS Mobile App to stay on track with their energy usage and payments, or set calendar alerts so they never miss another due date. JPS will also send reminders by email or text to persons with current contact details on their accounts.

Customers who need more time to pay are urged to contact JPS early to work out payment arrangements. Persons also have the choice of getting prepaid service, which gives them total control over how much they spend on electricity. And, there is no deposit requirement with prepaid.

Why a deposit upgrade?

JPS continues to be lenient in enforcing the provisions of the terms and conditions of service, which states that “a disconnected customer is required to upgrade his/her deposit to an amount equal to the last two months’ consumption value”. However, because of increasing bad debt among routinely delinquent customers, the company now has little choice but to increase the minimum deposit requirements. The new deposit levels are more in line with the average debt exposure per customer per month.

Interest on deposits & deposit refund

JPS has paid interest on customer deposits each year since the 1960s. The interest rate that JPS pays on deposits is the same as the Bank of Jamaica Treasury Bill Rate. JPS is the only utility that pays interest on deposits. In addition, the company has introduced a deposit refund option. Customers who pay bills in full and on time for 24 consecutive months, can request a refund of their deposits.