KINGSTON, Jamaica, CMC – Science, Energy, Telecommunications and Transport Minister, Daryl Vaz, said Tuesday that the government may not be willing to renew the all-island licence with the Jamaica Public Service’s (JPS) to supply electricity without re-negotiation of the current terms.
Vaz, speaking at a news conference, told reporters that the licence is due to expire on July 8, 2027, and that the Andrew Holness government is open to exploring other contracts with interested parties.
“I wish to assure the nation that the government’s serving of formal notice to JPS of its intention to acquire the license business augurs well towards stability in the electricity sector, even as we negotiate terms which better serve the people of Jamaica.
‘There will be no disruption to service delivery prompted by our move to put ourselves in a position to secure better outcomes for the consumers. The licence is particular, and the terms of the licence and until 2027, those conditions are in place,” Vaz told reporters.
Vaz said he has already written to JPS in his capacity as energy minister, giving “formal notice” of the government’s intention upon the expiration of the all-island licence, not to renew under existing terms.
He said the letter was written by the licence agreement, which provides that the government of Jamaica may acquire the licence business upon the expiration of the licence terms…
“Let me make it clear it is not the intention of the government of Jamaica to take charge of the operations of the JPS,” he said, noting that “before the expiration of the current licence in 2027 we intend to renegotiate new licencing terms and conditions with potential investors which are favorable for the people of Jamaica”.
He insisted that the 20-year licence had given the JPS the power to operate, was “flawed”, resulting in “flawed service”, and that under its current terms, the licence has not served Jamaica well.
He said that the terms under the current licence have yielded electricity prices that are amongst the highest in the region.
“There has been a 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.”
Vaz said the current licensing arrangements with the JPS do not provide sufficient incentives to bring renewables onto the grid at scale, and they provide for generation via imported fossil fuels, which is not cost-effective.
“We are getting an opportunity to draw a line in the sand, learn from our mistakes on an even keel to get the best results,” Vaz said, adding he would deal with any dip in service quality by employing the strength of the Office of Utilities Regulation (OUR).
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