Government Open to All Parties for New Electricity Licensing Arrangement

Science, Energy, Telecommunications and Transport Minister, Hon. Daryl Vaz, says the Government is open to all parties desirous of entering a new electricity licensing arrangement, including the current licensees.

“The terms of the new arrangement must be consistent with the Government’s primary objective of reducing the country’s energy bill and securing more reasonable and affordable electricity costs for Jamaicans,” he said at a special press conference held at Jamaica House on Tuesday (July 1).

Minister Vaz noted that with the current Jamaica Public Service (JPS) licence approaching its end, there is an opportunity to negotiate real changes that will benefit the country and its people.

He said a letter was written to the JPS advising that the Government will not be renewing the current all-island licence under the existing terms upon its expiration on July 8, 2027.

The Minister pointed out that the Government intends to negotiate new terms that are consistent with the vision for a reformed energy sector.

“Even as we pursue the pathway towards reformation, I wish to assure the nation that the Government’s serving of formal notice to JPS of its intention to acquire the licensed business, augurs well towards stability in the electricity sector, even as we negotiate terms that better serve the people of Jamaica,” he noted.

The Energy Minister said the decision follows extensive deliberation and consultation with industry experts and consultants.

Mr. Vaz said in consideration of the future of Jamaica’s energy sector and the terms under which a new JPS licence will be governed, the Government will not enter into arrangements that do not provide a framework for positive reformation of the energy sector to deliver real and sustainable results for the people of Jamaica.

The Minister said it is part of a transformative move by the Government to pivot towards achieving more sustainable and feasible outcomes in the energy sector.

“As we negotiate a new licence, the Government is determined to extend every effort to put the people of Jamaica in a position to take full advantage of possibilities to reduce the country’s energy bill and to reduce the cost of electricity to Jamaicans. Improving Jamaica’s energy security and achieving decarbonisation goals are also among our key objectives,” he said.