Finance minister outlines ‘ambitious’ electricity theft reduction programme
Published:Wednesday | March 12, 2025 | 12:07 AMEdmond Campbell/Senior Parliamentary Reporter
The Government is moving to roll out what it describes as “the most ambitious programme” to allow affordable access to prepaid electricity, particularly for those stealing light and power from the Jamaica Public Service (JPS) grid.
Targeting 20,000 first-time JPS customers, the Government will be providing $4,000 credit for electricity per month for six months under its House Wiring and Inspection Programme.
In her maiden opening of the Budget Debate in Gordon House on Tuesday, Williams said a solution had to be found for Jamaicans who steal electricity as the cost of postpaid electricity was prohibitive relative to their earnings.
The Government has allocated $1 billion to assist the first 20,000 first-time JPS prepaid customers who sign up for prepaid electricity.
The finance minister said this billion-dollar funding will go towards paying for house wiring and inspection in order to get those with illegal connections to get legally and safely connected to the JPS grid.
Williams said the Government would be absorbing the cost of house wiring and inspection in an effort to cauterise the massive electricity theft problem.
“Prepaid electricity will put legal electricity within reach of many. Because prepaid electricity allows you to buy the amount of electricity that you can afford, when you can afford it; you have complete control,” Williams said, adding that cards or vouchers would be accessible from outlets across the country.
PROVIDING SIGN-UP PROCEDURES
The Jamaica Social Investment Fund will administer the programme and is expected to work with JPS to identify the vulnerable communities and provide the sign-up procedures.
“To give a sense of the value of the $4,000 credit, it is worth 50 per cent of the average monthly bill of a typical prepaid customer currently on the JPS system,” Williams noted.
Legal customers of the JPS were paying an estimated 17.5 per cent of bills to defray costs associated with electricity theft.
It has been reported that the dollar value of electricity stolen in 2023 was approximately $40.4 billion.
At the same time, Williams also said the commitment to reduce the general consumption tax (GCT) on electricity to seven per cent and eliminate the 150kWh threshold for postpaid residential customers was on track for implementation by JPS starting on May 1, 2025.
Additionally, the finance minister said those postpaid residential customers who use 250kWh or less will see a rebate of seven per cent and a three per cent subsidy for a total of 10 per cent.
The estimated revenue loss associated with the reform of the GCT on the supply of electricity to residential customers is approximately $2.994 billion.