Minister of Energy Daryl Vaz has announced the government’s intention to ensure that the current Jamaica Public Service all-island licence will not be renewed under the existing terms upon expiration.

Vaz stated that a letter to the JPS was written pursuant to Condition 27 of the licence, which provides for the Government of Jamaica to acquire the licence business at the expiration of the terms of the licence. “That expiration date is July 8th, 2027,” Vaz said.

He said it is not the intention of the Government of Jamaica to take charge of the operations of the JPS. However, prior to the expiry of the current licence in 2027, the government intends to renegotiate new licence terms and conditions with potential investors which are favourable for the people of Jamaica.

“Our country will recall that in 2001, the former People’s National Party administration government entered into an all-island licence arrangement with the JPS. Subsequently, the same administration further entered into a binding agreement to amend provisions of the 20-year-old licence. I think we can all agree that the people of Jamaica have not been served well by the existing electricity supply arrangements.

“The terms and conditions under the current licence have yielded electricity prices which are amongst the highest in the region. The arrangement in relation to the licence is deeply flawed and in need of significant reform. The current juncture represents the first opportunity presented to the current administration of Prime Minister [Andrew] Holness to secure terms which better serve the people of Jamaica,” Vaz continued.

The energy minister highlighted that the Government of Jamaica has determined that consumers of electricity in Jamaica should be placed in the best position to benefit from developments surrounding the global reduction in the cost of renewables.

“The current licence arrangements with the JPS do not provide sufficient incentives to bring renewables into the grid at the scale, and they provide for generation via imported fossil fuels, which is not cost-effective. It is time to reform. As we negotiate a new licence, the government is determined to extend every effort to put the people of Jamaica in a position to take full advantage of the possibilities to reduce the country’s energy bill and to reduce the cost of electricity to Jamaicans.

“Improving Jamaica’s energy security and achieving decarbonisation goals are among our key objectives. The current JPS licence is approaching the end of its life in 2027. As I said before, this is the first opportunity presented to the current administration to negotiate real changes which benefit our country and its people,” Vaz added.

Vaz said the steps taken by the Government of Jamaica are reflective of the success of the administration over the past nine years in placing the economy on a stable footing and making the current climate conducive to investment.

“The formal notice given to JPS will give the government the remaining two years of the existing JPS concession to implement holistic changes through the development of a long-term plan to create a modern and efficient electrical power system which is more dependable and creates a sustainable pathway towards lower electricity prices for Jamaica households and businesses alike,” Vaz said.