In todays gleaner link
http://jamaica-gleaner.com/gleaner/20110731/lead/lead12.html
Too many of us have not taken the time to understand our bills and end up paying more to JPS that we should.
Today I will focus on what some manufacturers were complaining about today and that is Demand ( Kva/KW).
Let me explain the KVA demand portion of the bill for those who have not taken the time to unda stand dem bill.
Firstly for industrial customers there are 5 components to your bill.
1. KWH consumption i.e. energy use over time. (Energy charge)
2. Demand charges KW or KVA. KVA is used when you are being charged for low power factor.
3. Fuel charge (IPP)
4. Exchange rate adjustment
5. Customer charge.
KVA Demand Charge.
JPS must make available to you that instantaneous demand when you need it and as such must have the generation capacity to meet this even if you only need it for a short period of time.
JPS measures your demand using a demand meter, which records your demand in 15 or 30 min periods and notes the highest demand in this period.
Now lets say today your demand if 500 Kva then for the rest the month its 250KVA, what you will get billed for is 500KVA for this month and not 250kva even though that was what you registered for 29 out of 30 days.
Now its gets worst as JPS uses (most utility uses this) what is called a ratchet clause, which means for the next 5 months your demand charges will by 80% of the highest demand recorded or the highest demand record during the month in question which ever is higher.
e.g. July highest Demand registered is 500kva one day.
August highest demand register is 250kva
Sept highest demand is 100Kva.
What you will get billed for in July is 500kva
Aug you get billed for 500x 0.80 = 400va
Sept = 400 kva.
Now if in November you hit 600KVA, you get billed for 600 Kva and 80% of 600 Kva for the next 5 months starting in December.
Only who unda stand jps bill can cross over d river to get savings if u nuh unstand it st tamas pand must get u.
Correction : (I made a correction to the above based on the 2010 tariff structure as approved by the OUR, the % of demand charges is 80% vs the 85% previously stated and is in effect for 5months instead of 11 months as previously stated)
Jay,
ReplyDeleteGood work and plainly written for the average consumer.
How does it work when I hear of businesses being billed even months after closure/disconnection?
Mmike, here is how it works.
ReplyDeleteThe demand charges(Kva) represents what the business requires from the utility company at any point in time.
Let me give you a quick example.
If you should turn on all the pipes in your house at once you would expect that you would get water from each pipe, that represents your maximum demand.
Similarly when a business is starting up say in the mornings it expects that JPS will be able to provide what it(the business needs) in terms of electricity to start up, that is your demand.
Once the plant start your demand falls off and become relatively stable. So your start up demand could be say 100Kva but your stable demand is 50Kva.
Because JPS must maintain the generating capacity to meet your 100Kva demand you have to pay JPS for this even when you are not using it.
JPS tariff structure of 2010 allows JPS to build you for 80% of your maximum demand for the next 5months or at your current demand which ever is higher.
So In Aug I reached a demand of 100kva and close business in early Sept, I will be billed for 80Kva for the months of Sept - Feb 2012.
In essence I am paying JPS for the next 5months following the closure of the business.
JPS cannot simply move its generator and as such it seeks compensation for this asset even when its on standby.
Hope I have now cleared this up.