All Processes on New Electricity License in Progress

Discussions with the Jamaica Public Service (JPS) Company for a new electricity licence are under way, and the necessary legal, policy and stakeholder consultation processes are progressing.

The Green Paper on Electricity Sector Reform is also on track for completion in July, with Cabinet submission expected later that month.

The update was provided by Minister of Energy, Transport and Telecommunications, Hon. Daryl Vaz, in a statement to Parliament on Wednesday (June 10).

He pointed out that the Government has reviewed the current JPS licence, which expires in July 2027, and identified significant shortcomings.

These include high electricity costs, inadequate provisions for system resilience, high losses passed on to the consumers, slow renewable energy integration, weak efficiency incentives, and limited opportunities for competition.

He noted that to address these issues, the Government has adopted a two-track approach.

“The first track involves negotiating a new licence with JPS that aligns with the national energy objectives and delivers better outcome for the consumers. The second track prepares alternative ownership arrangements should negotiations not produce a satisfactory result, ensuring continuity of service and protection of the public interest,” Mr. Vaz explained.

He emphasised that the Government’s broader goal is to reform the electricity sector by increasing accountability, improving affordability and resilience, promoting competition and preventing the re-emergence of an entrenched monopoly.

An electricity licence negotiating team, comprising representatives of the Energy Ministry; the Ministry of Finance and the Public Service; the Attorney General’s chambers; the Consumer Advisory Committee on utilities; local energy specialists and international technical, legal, and financial consultants, has been established to guide the process.

“The Government remains committed to creating an electricity sector that is more affordable, reliable, resilient, competitive, and responsive to the needs of the Jamaican consumers and businesses, while supporting national development and economic growth,” Mr. Vaz assured.

Meanwhile, the Minister noted that the June 5 islandwide blackout has reignited important discussions regarding accountability, consumer protection, and a regulatory framework governing Jamaica’s electricity sector.

“The incident has further strengthened my resolve to pursue a review of both the Electricity Act and the Office of the Utilities Regulations Act to ensure that legislative and regulatory framework is fit for purpose, provides stronger protection for consumers, and equips regulators with the tools necessary to promote greater reliability and accountability within the sector, with necessary sanctions,” Mr. Vaz maintained.

He emphasised that where Jamaicans have suffered demonstrable losses because of an outage of Friday’s (June 5) magnitude, the issue of compensation must be seriously addressed and considered by the JPS.

Minister Vaz said the event underscores the importance of ensuring that the future licensing arrangements contain clear performance standards, resilience requirements, customer service obligations, and appropriate mechanisms of accountability when major system failures occur.

He maintained that the outage has reinforced the importance of ensuring that all sectors are fully prepared to withstand adverse weather conditions.

“As we enter the Atlantic Hurricane season… preparedness must remain a national priority. Last Friday served as a timely reminder of how vulnerable critical infrastructure can be disrupted,” Mr. Vaz said.

He further urged Jamaicans to take personal responsibility for preparedness this hurricane season.