Gov't says it will not renew existing JPS licence

The Government will not renew the Jamaica Public Service Company’s (JPS) all-island licence under the existing terms, the minister with responsibility for the energy sector has disclosed.

JPS is the sole distributor of electricity in Jamaica.

Energy Minister Daryl Vaz said the decision not to renew the licence under the current terms has already been communicated to the company.

Vaz, who was speaking at a media briefing on Tuesday, cited Condition 27 of the licence, which allows for the Government of Jamaica to acquire JPS’ operations at the expiration of the agreement.

The current JPS licence expires on July 8, 2027.

The energy minister noted, however, that the Government does not intend to take over JPS’ operations.

Instead, he said prior to the expiration of the current licence, the Government intends to negotiate new licensing terms and conditions with potential investors “which are favourable to the people of Jamaica”.

Vaz, in explaining the reasons for the Government’s decision, said: “I think we can all agree that the people of Jamaica have not been served well by the existing electricity supply agreement."

The existing licence came into effect in 2001 when the People’s National Party formed the government.

“The terms under the current licence have yielded electricity prices which are amongst the highest in the region. The arrangements are deeply flawed and in need of significant reform,” the minister said.

With the licence set to expire in two years, Vaz said this is the first opportunity for the current administration to secure terms which better serve Jamaicans.

- Livern Barrett

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