The island’s foremost private sector groups are commending the government for its “transparency and decisive action” in formally advising the Jamaica Public Service Company (JPS) of its intent not to renew, under the existing terms, the current all-island license, which expires July 2027.

“We welcome the minister’s clear recognition that Jamaica’s electricity sector is in urgent need of reform. High energy costs have long presented a significant barrier to growth for businesses and an undue burden on households.

“The government’s objective to renegotiate licensing terms in pursuit of more competitive pricing and improved national energy security is aligned with long-standing calls from the business community for structural transformation in this space,” the Jamaica Chamber of Commerce (JCC), the Jamaica Manufacturers and Exporters Association (JMEA), and the Private Sector Organisation of Jamaica (PSOJ) said in a joint statement on Tuesday.

The joint statement follows Minister of Science and Energy Daryl Vaz’s disclosure at a press conference Tuesday that he wrote to the JPS about the issue.

In making the announcement, Vaz advised 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. 

But the minister was quick to explain that it is not the intention of the government to take charge of the operations of the JPS, noting that prior to the expiration of the licence in 2027, the government intends to renegotiate new terms and conditions with potential investors, which are favourable for the people of Jamaica.

Prior to the joint statement being released, PSOJ president Metry Seaga said he was excited that the government is choosing to have a complete relook at the licence.

Asked by Our Today about any new provisions the PSOJ would want to see in the new licence to be negotiated, Seaga responded, “I think it would be premature for me to start telling you of things I would want to see or not see. However, I did ask the minister in the press conference if he is willing to have the private sector at the table, and he said, ‘Yes’, so we are looking forward to being in those meetings and to come up with proposals that work for everybody.”

The PSOJ has complained for years about the high cost of electricity in Jamaica compared to the wider Caribbean.

Even as the powerful private sector groups hailed Vaz’s announcement, they said, “as we move toward reform, we must also confront” these hard truths:

• Jamaica loses approximately 28 per cent of the electricity it generates—one of the highest system loss rates in the region, far exceeding the Latin American and Caribbean average of 15 per cent. These include both technical losses and non-technical losses, such as electricity theft.
• These losses significantly drive up electricity costs for paying consumers, deter much-needed investment, and undermine confidence in the energy system.
• Jamaica’s electricity rates remain among the highest in the Caribbean, averaging US$0.28–0.30/kWh, compared to countries like the Dominican Republic and Trinidad & Tobago, which have rates closer to US$0.12–0.15/kWh.

“Reform is not optional. It is essential. As representatives of Jamaica’s private sector, we fully support the Government’s commitment to developing a modern, efficient, and sustainable electricity system—one that leverages the global decline in renewable energy costs and prioritises affordability, reliability, and environmental responsibility,” the joint statement continued. “This transition is critical to Jamaica’s long-term economic resilience.”

To guide this reform, the JCC, JMEA, and PSOJ emphasised that any new license or regulatory framework must be anchored in three core pillars:

 1. Fuel Mix and diversification: Accelerate the integration of renewables and cleaner fuels into the national grid. This includes re-evaluating legacy power purchase agreements (PPAs) that lock consumers into uncompetitive pricing and taking advantage of the falling global costs of solar, wind, and battery storage.

2. Implementation and execution policy: Ambitions must translate into real-world improvements. This includes updated time-of-use tariffs, expanded wheeling arrangements, streamlined approvals for renewable projects, and modernised grid access rules, especially for commercial-scale producers

3. Finance and affordability: Access to affordable financing is vital for businesses to invest in cleaner energy. We urge the creation of concessional loan facilities in the four to six per cent interest range, backed by guarantees to de-risk lending for financial institutions. Additionally, we call for modernisation and digitisation of the grid to reduce technical losses and improve reliability, aggressive action against electricity theft, including surveillance, metering upgrades, enforcement, and public education, greater data transparency, particularly from the OUR and industry players, to support evidence-based policymaking and investment decisions alignment with national energy goals, including achieving 50 per cent renewable energy by 2030 and reducing average electricity costs toward US$0.12/kWh.

The joint statement concludes: “We are particularly encouraged by the minister’s assurance that this process will be consultative, and we respectfully request formal engagement of private sector stakeholders throughout the design and implementation of the new energy framework. The private sector is not only a major energy user—it is also a potential partner and investor in this critical space. This is a once-in-a-generation opportunity to correct longstanding inefficiencies, promote innovation, and deliver a more equitable, cost-effective energy future. Together, we must seize this moment with clarity, courage, and collaboration.

“The PSOJ, JCC, and JMEA reaffirm our commitment to working with the Government of Jamaica and all stakeholders to deliver an energy system that supports inclusive economic growth, energy justice, and strengthened national competitiveness.