Gov’t to End Current JPS Licence in 2027

The Government of Jamaica will not be renewing the Jamaica Public Service (JPS) Company’s current all-island licence under the existing terms, upon its expiration on July 8, 2027.

Science, Energy, Telecommunications and Transport Minister, Hon. Daryl Vaz, made the announcement at a special press conference on Tuesday (July 1) at Jamaica House.

He indicated that the JPS has been officially advised.

“My letter to the JPS was written pursuant to Condition 27 of the licence, which provides for the Government of Jamaica to acquire the licensed business at the expiration of the term of the licence,” he informed.

The Energy Minister said the formal notice given to the JPS will allow the Government the remaining years of the existing JPS concession to implement holistic changes.

This is through the development of a long-term plan to create a modern and efficient electrical power system that is more dependable and creates a sustainable pathway towards lower electricity prices for Jamaican households and businesses.

Minister Vaz said the terms under the current licence have yielded electricity prices that are among the highest in the region.

“It is not the intention of the Government to take charge of the operations of JPS. Prior to the expiry of the current licence in 2027, we intend to negotiate new licensing terms and conditions with potential investors that are favourable to the people of Jamaica,” he pointed out.

Minister Vaz said the Government’s decision to not renew the JPS licence under the existing terms, comes within the context of developments in the wider electricity sector where there has been significant global reduction in the cost of renewables.

“The Government of Jamaica is determined that consumers of electricity in Jamaica should be placed in the best position to benefit from these developments. The current licensing arrangement with the JPS does not provide sufficient incentives to bring renewables onto the grid at scale and it provides for generation via imported fossil fuels, which is not cost-effective. It is time for reform,” he said.

Stating that the existing arrangements are “deeply flawed and in need of significant reform”, Minister Vaz reiterated that the decision by the Government is to “secure terms which better serve the people of Jamaica”.