Durrant Pate/Contributor

A draft Heads of Terms for an all-island electricity licence, scheduled to take effect in 2027, has been approved by the Cabinet of Jamaica.

Minister of Energy, Transport and Telecommunications, Daryl Vaz, explains that the document outlines the principal features of the proposed licensing framework, noting that once the detailed legal structure has been finalised, formal negotiations will begin with the Jamaica Public Service Company (JPS), which holds the current all-island electricity licence.

“Work is being carried out by a dedicated electricity licensed negotiation team comprised of officers of the Ministry of Energy, Transport, and Telecommunications; Attorney General’s Chambers; Ministry of Finance and the Public Service; the Office of Utilities Regulations (OUR), as well as energy specialists from the private sector and academia,” Vaz reported.

Last November, the ministry entered a new contract with Francis Maude Associates, representing phase one of a structured three-phase reform process to establish a modernised licence framework, with the initial phase running until next month. This stage is focused on establishing the key commercial, regulatory, and legal foundations that will underpin the new licensing regime.

16-month development and implementation phase

He told journalists last week beginning April ’26, Francis Maude Associates’ broader work stream schedule, which will advance into a 16-month sectoral framework development and implementation phase. This work comprises the preparation of a new Electricity Act, amendments to the OUR Act, strengthened enforcement provisions, renegotiation of power purchase agreements, updated policies to address system losses and enhance grid resilience, as well as the publication of a draft White Paper outlining the full scope of reforms.

Minister Vaz added that the process also establishes structured pathways depending on the outcome of negotiations. These include potential new licensing arrangements for transmission, distribution, and generation; transition support for government valuation mechanisms where required; and, where feasible, the competitive engagement of alternative operators.

For him, “This approach is deliberate, structured and reform-driven. It assures that, by 2027, Jamaica will have in place a modern, transparent and resilient electricity licence framework that protects consumers, strengthens regulations, attracts investment, and aligns the sector with the country’s long-term development objectives.”