Is there Light at the end of the Tunnel for Consumers?

I am diligently following in The Gleaner an emerging news story about a contract awarded to Azurest Cambridge Power by the Office of Utilities Regulation.

According to the article, ‘A consortium of five firms will combine under the umbrella of Azurest Cambridge Power to construct the US$690-million 360-megawatt barge-mounted power plant, which will supply half of Jamaica’s energy needs to the national grid.’

Click to read the full article http://jamaica-gleaner.com/gleaner/20130920/lead/lead4.html

The title of the article also really made my day as it read: “We are confident that we can cut Power Costs” This bold assertion by the company who won the bid is music to my ears and my pockets.

I had started to think that J.P.S. was never going to face any real competition and continue to be our only choice for providing electricity. As the bills continued to climb, I despaired every having a bill that would not put a serious dent in my salary.

Although the plans for the alternative power grid is still in its infancy stage, it seems like a viable plan on paper and hopefully they will be able to overcome any challenges they might face.
I especially like the focus on using gas methane as a natural alternative while oil will only be used as backup.

What impact will this have on consumers?

I have always said that competition is healthy and this is no exception. The fact is that when faced with a choice, consumers will be able to demand better value for their money.
There will also be a need of increased incentive for customers to stay with their current provider or switch to their competitor.

The new company has promised to reduce the energy cost from US$0.42 cents per kilowatt-hour to between US$0.15 and US$0.18 cents. They state that this move will reduce the overall electricity bill for consumers.

This will be a welcome relief for everyone’s pockets!

There is another aspect to the situation that concerns me. Although the promises sound so fantastic suppose after some time passes they could not afford to maintain the low cost of providing electricity to consumers.
It would be so disappointing if they were not able to fulfill their promises.

However, on a positive note, the timeline they have set for the implementation of their factory is September 2015. So in a year they will hopefully address any concerns and be our solution to hefty electricity bills.

Should consumers start celebrating or will we be left in the dark once again?
What’s your take on the issue?

Tags: energy, Light