Utility Providers Urged to Incorporate Disaster Preparedness In Operational Model

With the increase in severe weather events impacting the island, utility providers are being urged to incorporate disaster preparedness into their operational and financial models.

The call comes from Energy, Transport and Telecommunications Minister, Hon. Daryl Vaz, who says this should include mechanisms such as insurance coverage for critical infrastructure; investment in catastrophe or resilience bonds; emergency contingency; strengthened infrastructure; and risk management planning for major weather events.

“These measures ensure that when damage occurs, utilities already have financial resources available to begin rebuilding immediately,” he said.

Minister Vaz was addressing the Office of Utilities Regulations (OUR) 12th Annual Director-General’s Stakeholders Engagement, on Thursday (March 19), at The Jamaica Pegasus hotel, in New Kingston.

Pointing out that this is where regulators play an important role, the Minister said the OUR’s mandate is to ensure that utility providers operate within a regulatory framework that promotes resilience, accountability, and long-term sustainability.

“Regulatory oversight can help ensure that utilities plan responsibly for disaster risks and incorporate contingency financing into their operations. And this should be the case or the requirement, irrespective of sector dynamics, because even in sectors that operate under market competition, such as telecommunications, where the market itself drives innovation and investment, the networks are also critical infrastructure, especially during emergencies. Governments and regulators must still ensure that resilience and recovery planning, and not only profit, are a priority,” he said.

Citing the significant infrastructure damage from Hurricane Melissa in 2025 and Hurricane Beryl in 2024, Mr. Vaz said those experiences have helped to shape the Government’s approach to financing recovery going forward.

Importantly, he emphasised that in post-disaster recovery, the Government’s role is not to “bail out” service providers. Rather, its role is to ensure that the policy and financial frameworks exist, so that essential services can be restored quickly while protecting the interests of consumers and the wider economy.

“Even with the best preparation, severe weather events can cause significant damage to national infrastructure. When that occurs, utilities must have access to financing that allows restoration efforts to begin immediately,” he said.

Minister Vaz said post-disaster recovery financing should take several forms, including Government emergency support mechanisms; insurance payouts from rearranged products; multilateral development financing; loans and grant facilities and pre-arranged access to regional disaster risk insurance programmes.

“Jamaica participates in regional insurance arrangements, such as the Caribbean Catastrophe Risk Insurance Facility, which helps provide rapid financial support following major disasters,” Mr. Vaz noted.

He pointed out that at the national level, institutions such as the Development Bank of Jamaica also provide financing options that can support recovery and infrastructure rebuilding.

“These financial instruments help ensure that reconstruction can begin quickly, while allowing economic activity in affected communities to resume as soon as possible,” he said.