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The
Energy, Electricity and Water sector showed an increase of 2.2 per
cent in GDP.
This was as a result of an increase in the demand for electricity and water. Total
Gross Domestic Product (GDP) for this sector increased to $17,570.7
million in 2009 compared to 17,197.7 in the previous year. A
marginal increase was recorded for electricity generation due to
higher output levels from non-Jamaica Public Service Company (JPSCo)
sources.
The overall contribution of the sector to real Gross
Domestic Product (GDP) stood at 3.6 per cent compared to 3.4 per
cent in 2008. The total labour force in the sector increased by
850 to 8,700 persons in 2009 compared to 7,850 in 2008.
In
2008, sale of electricity declined by 1.1 per cent but showed an
increase of 3.2 per cent in 2009 to 3,231.5 gigawatt hours.
Although there was an increase in sales, revenue for 2009
decreased by $0.1 billion to $71.51 billion relative to $71.7
billion in 2008. Water production grew by 2.2 per cent to
299,294.0 megalitres compared with 292,994.5 megalitres in 2008.
Due to drought conditions in the second half of the year, a total
of 92,697.8 megalitres was consumed 327.1 less than in 2008. The
drought conditions in
Kingston
and St. Andrew resulted in the introduction of water restrictions
by the National Water Commission. As a result of the restrictions,
water connections decrease by 4.7 per cent to 416,888 in 2009
compared to 437,280 in 2008.
Energy
The
reduction in demand for oil on the international market was due
mainly to the global economic crisis as well as a reduction in
demand by the Organization for Economic Co-operation and
Development (OECD) countries. This resulted in a decrease in
supply by 1.5 per cent to 84.9 million barrels per day (mbd). Total
world oil supply decrease by 1.8 per cent as a result of a 6.1 per
cent reduction in OPEC supply. However,
non-OPEC supply grew by 1.2 per cent in 2009 to 5.13 mbd
compared to 50.7 mbd in 2008. This was as a result of higher
production levels from countries such as the former
Soviet Union and
Latin America
.
The
price of crude
oil on the international market fell by 36.3 per cent to US$61.76
per barrel, US$35.23 less than 2008. The decrease was fuelled by
several factors which included a decrease in demand due to the
global economic recession and a build up in inventories.
Petrojam
reported that
Jamaica
imported 8.7 million barrels of crude oil in 2009 compared to 8.3
million barrels in 2008. This resulted from the downturn in crude
oil prices earlier in the year.
Venezuela
continued to be the main source of most of
Jamaica’s imports under the Petro-Caribe Agreement on Energy
Cooperation with an average cost per barrel of US$57.58. In terms
of finished products imported by Petrojam, the total value
declined by 44.9 per cent to US$502.1 million. This decline was
due to the combined effect of lower import volumes and lower
prices of crude oil
prices.
The
value of imports by the petroleum marketing companies also fell by
47.6 per cent to US$180.1 million. The
total cost of imported petroleum products was 13.8 per cent of the
country's
total oil bill which stood at US$1.3 billion in 2009.
There was a decline in sales for petroleum products due mainly to a downturn in demand and the
introduction of Special Consumption Tax on gasoline in April 2009.
This resulted in a downturn in unleaded 87 of 60.3 per cent,
kerosene/turbo of 98.6 per cent, automotive diesel oil of 19.2 per
cent, fuel oil of 41.2 per cent and asphalt of 26.5 per cent. The
sale of unleaded 90 however increased by 21.6 per cent.
Energy
consumption
Total
energy consumption measured in barrels of oil (BOE) stood at 20.6
mb or 24.3 per cent lower than 2008.
Fuel oil recorded the largest decline of 36.3 per cent. An
increase in consumption was recorded for alternative energy
sources due to increased use of coal and wind products.
Reduced petrol prices in 2009 resulted in a 1.1 per cent
increase in consumption for road and retail transportation.
The Energy consumed by the Bauxite and Alumina sector drastically declined to
3.5 mb in 2009 compared to 9.4 mb in 2008. This was due mainly to
the closure of two plants. Cement manufacturing also
registered a decline in demand for energy as a result of a contraction in construction
activities.
Electricity
There
was an increase in electricity generation as a result of increased
generation from Non-Jamaica Public Service Company sources
of 7.1 per cent and JPSCo sources of 0.1 per cent. This positive
out turn was due to improved demand after the first quarter of the
year. Consequently,
both JPSCo and non-JPSCo sources recorded the highest level of
quarterly production ever.
Increased
production in electricity for 2009 grew marginally as a result of
increase generation from JPSCo steam units of 1.2 per cent.
There was a fall off in electricity generation from its
hydro and gas turbines which fell by 11.1 per cent and 1.3 per
cent respectively. Total
fuel consumption increased by 0.5 per cent while total fuel cost
declined by 14.8 per cent to $32.1 billion due to lower crude
oil prices on the international market.
During 2009, JPS recorded an increase in sales to consumers
of 3.2 per cent which reversed the decline incurred in 2008.
Consumers
accounted for 76.7 per cent of total electricity generated while
line losses and other unaccounted for net generation stood at 23.7
per cent. Growth in
sales was as a result of increase demand in most consumer
categories. The Residential category was the main contributor with
an increase in usage of 59.9 GWh. The General Service and Power
Service categories recorded increases of 19.6 GWh and 17.9 GWh
respectively. The
overall increase may be attributed to a rise in the number of
consumers in the category associated with high usage such as for
Large Power and Power Service. The JPS customer base declined by
0.6 per cent in 2009 to 582,633 compared to 586,138 in 2008. This
was due to a decline in Residential and General Service categories
which was attributed to inactive accounts.
Water
Total
water connections from National Water Commission (NWC) declined
from 437,280 in 2008 to 416,888 in 2009.
There was a 4.4 per cent reduction in connection in Kingston, St.
Andrew and St. Thomas, and also a 4.8 per cent decrease in Other Parishes.
NWC's revenue increased by 15.4 per cent to $15,003.6 million compared with
$12,978.1 million in 2008. The factor which contributed to the
increase in revenues was the Annual Price Adjustment Mechanism.
Policies,
Programmes and Other Developments in the Sector
The
National Energy Policy (NEP) 2009-2030 was revised updated and
restructured to reflect the current energy situation and to align
the policy direction with those of Vision 2030. The new policy
focuses on seven areas:
-
A
modernized energy infrastructure;
-
Security
of energy supply;
-
Efficiency
and conservation;
-
Development
of renewables;
-
A
governance and regulatory framework;
-
The
eco-efficiency and green economy by industries; and
-
Government
leading in energy conservation practices
Other
policies developed to support the NEP also included the Energy
Conservation and Efficiency (ECE) Policy, Carbon Emission
Trading Policy and the Biofuels Policy.
Source:
Economic and Social Survey Jamaica 2009
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