It would seem to me that the current Jamaica Public Service (JPS) policy represents a somewhat short-sighted approach to electricity theft. Either that or it demonstrates an unwillingness to tackle the problem in a holistic manner.

About five years ago, JPS offered a moratorium on irregular or illegal connections. Illicit users were asked to regularise their connection by getting their houses wired by an electrician and passed by a government electrical inspector (GEI).

What the JPS was unintentionally promoting was the overcharging, at best, and rip-off (bandoolooism), at worst, by those same electricians and their surrogates. This was compounded by the lack of knowledge of what is required and the need for some standard and published charge for doing same. Making it more complicated was the bureaucratic and lengthy nature of the entire process. I recently applied for electricity and the entire process took well over two months with the bulk of time spent waiting for GEI certification.

The result was that the number of persons eventually taking up this offer was just a fraction of those wanting to regularise their situation. A more effective solution that would bring more users into the net could be arranged if resourceful deliberation is applied to this problem.

According to the JPS's website, the JPS loses 13 per cent of total electricity produced due to theft.

In an attempt to reduce the amount of electricity theft by just one per cent, the JPS plans to spend US$9 million per year for the next five years. (That's a whopping US$45 million or over J$4 billion - a lot of money). Of this amount, the JPS intends to spend US$5 million (J$450 million) this year alone on their new Advanced Meter Infrastructure Residential (AMIR) system which allows up to 24 electronic metres with remote disconnect/reconnect switches to be installed inside a single metre cabinet. Metre cabinets have tamper-proof locking capabilities that, if activated by JPS, can disconnect all the premises served by the metres located inside that cabinet, should someone attempt to tamper with the system.

Remote monitoring

The AMIR project, which targets loss-prone areas, will facilitate remote monitoring of customer metres and quick detection of attempts at tampering. The bugbear with that, however, is the AMIR project still requires suitably installed and certified electrical systems.

My solution is as follows:

1) Have two electrical plans drawn-up with minimal electrical requirements. For example:

a) Two lights and three electrical outlets.

b) Three lights and four electrical outlets (including one for refrigerator)

The above takes into account the fact that over half of all users of electricity are very small consumers.

2) Have electricians tender to install (a) and (b). This should be done region by region.

3) JPS should pre-purchase/package the necessary materials for these two options. Any material needed over and above the minimum required would have to be paid out-of-pocket. In this way, economies of scale would be achieved.

4) Negotiate with GEIs the lowest charge for inspection of same. This could also be done on a tender basis. With some 900 licensed GEI's islandwide, this could get quite competitive.

5) Develop a special department/window for fast-tracking these applications. This could be aided by working alongside community-based organisations.

6) Offer a four-year loan to cover these initial expenses payable monthly with their electricity bill.

There is always a cost of having an irregular/illegal connection - even if it is just throwing up a wire. It may sound callous but human lives are worth something.

Moreover, the bulk of the illegal users pay 'exorbitant' fees to the few who are responsible for their supply. More times than not, these same 'suppliers' are themselves extracting electricity illegally. Oftentimes, the end users pay many times over the comparable cost of legal supply. This is so simply because they have no reference for them to compare the relatively low cost of electricity - low relative to the cost of their current illegal supply. You see, they have never been legal.

The JPS must stop enforcing a 'Corolla' (high) standard on a 'Cherry' (low) need. The majority of users live in a one or two room apartment and a few do not even have a refrigerator. They require just a 'Cherry'' connection. Again, it must be pointed out that even the AMIR solution pre-supposes properly-wired premises.

Affordable installation

My research indicates that when all the negotiations and tenders, pushed by competitive forces, are finalised, the total cost to purchase materials, install and pass a minimum two lights/three electrical outlets supply is under $32,000 - (assuming that this is a new installation requiring pot-head, meter socket, breaker panel, the works). This will be so particularly if the JPS employs bulk purchasing to establish these pre-packaged material kits.

The repayment per month would be just $842.68 per month (over 48 months) at 12 per cent per annum. This could be incorporated in the first 48 monthly bills. It is not inconceivable to anticipate some international aid organisation or similar agency providing some assistance, at least to cover the interest charge. In this latter case, the monthly repayment would be just $666.67 monthly.

The actual interest on $32,000 at 12 per cent p.a. on the reducing balance repayable in 48 equal instalments is exactly $8,448.77 over the life of the loan. Helping 1,000 such users would cost around $8,448,770 while facilitating 10,000 would cost just $84,487,700 - or less than US$1 million. This is manageable by any standard.

Imagine how far J$450 million, the amount allocated to the AMIR project, would go. Perhaps JPS could even subsidise some aspect of these new low need/usage electrical installations.

I am convinced that, while a few illegal electricity users may be thieves, a good portion of them would appreciate regularising themselves if facilitated. They are willing to pay the monthly charges for electricity. What they cannot find is the relatively large up-front cost, made even larger by unscrupulous 'electricians' and their cronies.

The payback to JPS will be in the revenue collected from these small users.

Of course, this scheme could be extended to cover small shops/businesses.

Finally, extend the time period after electricity is disconnected during which electricity can be restored, without getting re-certification, to 12 months instead of the current six months. This would induce more customers who have been going through a period of difficulty to restore their legal supply, rather than resorting to illicit sources, without having to undertake an additional charge or delay.

Egerton Chang is a businessman who may be reached at e_rider69@hotmail.com or columns@gleanerjm.com.