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  • The Government and the Jamaica Public Service (JPSCo) have signed off on an amendment to the JPSCo Licence.
  • In 2011, the previous administration amended the JPSCo licence to confer the management and administration of the procurement of new generation capacity on the Office of Utilities Regulation (OUR).
  • The Energy Minister pointed out that he has written to Energy World International (EWI) to indicate that the licence to construct the 381-megawatt power plant has been revoked.

The Government and the Jamaica Public Service (JPSCo) have signed off on an amendment to the JPSCo Licence.

“This will allow the Cabinet to manage the procurement process (for increased capacity) through the Electricity Sector Enterprise Team (ESET). It will also grant the JPSCo the right of first refusal in relation to the replacement of any of its existing generation facilities,” Minister of Science, Technology, Energy and Mining, Hon. Phillip Paulwell, said.

The Minister was closing the 2014/15 Sectoral Debate in the House of Representatives on Tuesday, July 8.

Mr. Paulwell said the amendment and related matters are pertinent to the critical and urgent issue of the procurement of the new base load generation capacity, while adding that it removes constraints on the ability of ESET to proceed with its mandate.

In 2011, the previous administration amended the JPSCo licence to confer the management and administration of the procurement of new generation capacity on the Office of Utilities Regulation (OUR).

“We do not believe that this is a role for the regulator. The role of the OUR as the overall regulator of prescribed electricity services, as outlined in the OUR Act, will be maintained,” Mr. Paulwell said.

Meanwhile, the Energy Minister pointed out  that he has written to Energy World International (EWI) to indicate that the licence to construct the 381-megawatt power plant has been revoked.

Mr. Paulwell further noted that consistent with the provision of the licence, the revocation takes effect on July 21, 2014.

“However, the Government regards the new base-load generation plant as a large-scale major project. As a result, all steps are being taken to give momentum to efforts to make this a reality, and allow for Jamaicans to benefit from cheaper electricity rates,” he said.

In this regard, Mr. Paulwell said Cabinet has been advised by ESET that consultancy services are being engaged to complete, within two months, the following: a least cost generation plan; power plant site options; and the business model and projected financial long term plan for JPSCo.