Blackout bite

SEVERAL small businesses across the island are still counting their losses following the June 5 islandwide power outage that disrupted operations.

Energy Minister Daryl Vaz announced in Parliament last week that future electricity licences will include mandatory compensation provisions as he insisted that a mere apology from utility provider Jamaica Public Service Company (JPS)was not enough for customers and businesses which suffered losses.

That came more than 13 years after an Office of Utilities Regulation (OUR) technical committee, which investigated the electricity grid shutdown in August 2012, recommended that the regulator be given the power to impose sanctions when there are serious breaches.

The technical team was most concerned about system shutdowns “which affect the entire country, resulting in significant financial and economic impact to the various rate categories, including industrial and residential customers”.

“Consequently, if there are situations where there has been a clear breach of set standards, practices, or codes, or where such breach continues to be in existence, despite the reasonable efforts of the OUR, then sanctions should be applied,” said the OUR.

“It is necessary that the OUR be vested with the authority to impose sanctions on regulated entities in the electricity sector in instances of serious breaches under the OUR Act or in a situation of ongoing non-compliance with the directives of the OUR,” the committee said.

That recommendation was never implemented and now Vaz has vowed that a similar system will be implemented when the new electricity licence is implemented.

“I have consistently maintained that businesses and Jamaicans have suffered demonstrable losses because of an outage of this magnitude. The issue of compensation must be seriously addressed and considered by JPS. The commitment that I’m making is that the new licence and the new Act that will go with the licence will have mandatory compensatory measures and sanctions,” Vaz said during a sitting of the House of Representatives last Wednesday.

But that promise of future action is not enough for Howard Nelson, owner of Northside Barbers in Liguanea, who told the Jamaica Observer that the June 5 blackout forced him to close up shop and turn away customers.

“It really jerk us bad. I didn’t expect it. It slowed things down. We had a few people here at the time, and we had to turn them away. It really slowed me down,” Nelson said.

Althea Morgan, manager of Shoppers Delight supermarket located at Chancery Street, Kingston 19, said that although the business had a backup generator, it still had to close earlier than planned.

“The next day the light was in and out. We had to close the doors for about 20 minutes to fuel up the generator. It’s kind of frustrating. Sales dropped… We were affected,” said Morgan.

In Seaview Gardens, Susan Barrett, operator of Mizzy Wholesale and Retail, reported a significant reduction in sales, as many customers were unwilling to venture outdoors during the blackout.

Minister of Science, Energy, Telecommunications, and Transport Daryl Vaz (left) looks on as Jamaica Public Service President and CEO Hugh Grant makes a point at a joint press briefing at JPS Corporate Offce in New Kingston after the June 5 blackout. Vaz announced in Parliament last week that future electricity licences will include mandatory compensation provisions as he insisted that a mere apology was not enough for customers and businesses which suffered losses. (Photo: Joseph Wellington)

“We ended up losing couple customers and sales because of the outage. No one wants to wake in the darkness, then eventually light did go weh the following day. So it really affected us. This is a garrison and no one is going to take the risk or chance to walk, so persons stayed in,” Barrett said.

Meanwhile, Family Pride supermarket in Havendale reported minimal disruption because it had a generator in place.

“It wasn’t any different for us. We had a generator. When we have a power cut the generator comes on, so it doesn’t really affect us business-wise,” a representative told the Observer.

He said, however, some card transactions could not be processed because of Internet connectivity issues during the outage.

“Even though we have a generator, when there is a power cut certain point of sale cards don’t work, so when that doesn’t work we lose business because the customer cannot run their card because we need the Internet,” he said.

Garnett Reid, president of the Small Business Association of Jamaica (SBAJ), expressed disappointment following the recent power outages, describing them as a setback for small businesses across Jamaica.

He pointed out that bars, supermarkets, shops, barbers, hairdressers, pharmacies and food vendors were among the businesses hardest hit during the blackout, a period when many small enterprises earn a significant portion of their revenue.

“On a weekend, that’s when the bars make their money. That’s where the small supermarkets and shops make their money. That’s where the hairdresser, the barber, the chicken vendor, and the list goes on… We are talking about the 425,000 [small businesses] islandwide. We hope that this never happens again, because power is a very great component of small businesses and business operators,” Reid told the Observer.

He also raised concerns about losses resulting from spoiled refrigerated goods, particularly for businesses without access to backup power.

The SBAJ head called for greater transparency from the JPS as he urged the company to quickly provide Jamaicans with a detailed explanation of what caused the recent outages and the steps being taken to prevent a recurrence.

“To date, we have not seen a real official report of what happened, how it happened, and what is going to prevent it from never happening again. I am disappointed, and I hope something like this never happens again to the Jamaican business people, who are still struggling from Hurricane Melissa,” Reid urged.

He also argued that customers should be compensated when prolonged outages result in damaged appliances or significant financial losses.

The JPS has attributed the latest islandwide blackout to system failures related to severe weather affecting its Hunt’s Bay-Rockfort line. Another blackout was reported across several parishes on Tuesday, June 9.