Decision on JPS Licence Signals Gov’t’s Intent to Explore Alternatives – Minister Williams

Minister of Finance and the Public Service, Hon. Fayval Williams, says the Government’s decision not to renew the Jamaica Public Service Company (JPS) all-island licence under its current terms does not imply an intention to purchase the utility.

Rather, it enables the Government to explore alternative options ahead of the licence’s expiration on July 8, 2027.

“It allows us to negotiate new terms on behalf of the Jamaican households and businesses, and it also allows us to look globally at others who may be desirous of coming to Jamaica and lead in this industry,” Mrs. Williams said.

She was speaking during a press conference at Jamaica House on Tuesday (July 1) where she was joined by Minister of Science, Energy, Telecommunications and Transport, Hon. Daryl Vaz, who disclosed that a formal letter was sent to JPS advising of the Government’s decision.

Mr. Vaz said the Government will use the next two years to engage potential investors in negotiating new licensing terms that better serve the interests of the Jamaican people.

Minister Williams expressed strong support for the decision, stressing that renewing the current terms would leave Jamaican residents and businesses at a disadvantage, as they would continue to bear the burden of high energy costs.

“We know, because we are all consumers of electricity, that these terms and conditions… have only generated high electricity costs for Jamaicans, which have prevented us from being as competitive as we could be, relative to the rest of the world,” she argued.

“It is no secret that our manufacturing sector cannot expect to accelerate its growth unless it has significantly lower energy prices. And in the process of going through all this, I took a look at the comparison data that exists… and when you compare energy prices on a per kilowatt hour for Jamaicans, whether it be residential or business, it is significantly higher than the average experienced across the world,” Mrs. Williams maintained.

She described the decision not to renew the contract under its existing terms as a pivotal step towards reforming the energy sector, as the Government seeks more favourable conditions to benefit the Jamaican people.

“And so, we stand in full support of this, knowing the positive impact that the reduction in energy prices, which we will be seeking, will have in the Jamaican economy, on households, on business and for our future,” the Finance Minister stated.