Cabinet Approves New JPS Licence Terms

Cabinet has approved the Heads of Terms for a new electricity licence to be negotiated with the Jamaica Public Service Company (JPS), subject to the execution of a Non-Disclosure Agreement (NDA) between the Government and the company.

Minister of Energy, Transport and Telecommunications, Hon. Daryl Vaz, made the disclosure during his 2026/27 Sectoral Debate presentation in the House of Representatives on Tuesday (May 5).

Mr. Vaz further stated that the Electricity Act and the regulatory framework will be reviewed to give effect to the new licence regime.

“It is to be noted that, as was already outlined, if there can be no agreement with JPS, we will approach the international market to identify a provider. The Electricity Licence Negotiations Team awaits the signing of the NDA to proceed with negotiations,” the Minister stated.

“At the same time, the process is under way to engage international Legal Counsel to support the process as the Ministry strives to achieve the most efficient and effective process,” he added.

Meanwhile, Mr. Vaz advised that a White Paper on Electricity Sector Reform has been drafted and is now subject to review.

He added that the Paper will be brought to Parliament as soon as Cabinet approval is secured.

In March 2025, the Ministry engaged Francis Maude Associates to support a rigorous analysis and review of the electricity sector, with particular emphasis on an all-island electricity licence and strengthening the sector’s regulatory framework.

Mr. Vaz said this was achieved through funding provided by the Energy Management and Efficiency Programme.

“That phase-one assignment provided a very detailed report outlining a detailed, timed plan of action. This report was analysed and accepted by the Ministry and submitted for Cabinet decision on the way forward. The position was taken to have a new licence, being mindful of citizen welfare and the national interest, specifically lower energy costs to the consumers and a competitive energy price for the industry,” he stated.

Mr. Vaz said the consulting firm was re-engaged in November 2025 with funding from the Government, adding that activities towards securing an acceptable licence continued in earnest.

Meanwhile, the Minister reported that the LED streetlight replacement project was completed in April 2022.

Mr. Vaz further told the House that a total of 114,223 High Pressure Sodium (HPS) streetlights were replaced with smart LEDs, noting that approximately 6,000 HPS units remain outstanding, pending an audit and approval from the Office of Utilities Regulation. He added that all new streetlights procured by JPS are of the smart LED type.

Similarly, Mr. Vaz reported that the smart-metering provisions under the 2016 licence have reached 99.7 per cent completion as of April 2025.

To date, approximately 698,000 meters have been replaced with smart meters, while 2,000 remain outstanding due to access constraints.