Jamaica Ends JPS License: Cheaper Electricity Coming 2027?

The Government of Jamaica will not renew the Jamaica Public Service (JPS) Company’s all-island license under the existing terms when it expires on July 8, 2027. Hon. Daryl Vaz, Science, Energy, Telecommunications and Transport Minister, made the announcement at a special press conference on Tuesday (July 1) at Jamaica House.

The government plans to develop a long-term plan for a modern and efficient electrical power system to create a sustainable pathway towards lower electricity prices. Before the current license expires, the government intends to negotiate new licensing terms with potential investors.

Government's Stance

Hon. Daryl Vaz stated the 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.

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

Hon. Daryl Vaz clarified the intentions of the government.

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

The government believes the current licensing arrangement does not sufficiently incentivize renewable energy and relies on costly imported fossil fuels. The Minister stated the licensing agreement is "deeply flawed and in need of significant reform". The goal is to "secure terms which better serve the people of Jamaica".

Hon. Daryl Vaz explained the government's determination that electricity consumers should benefit from developments in the energy sector.

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

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