JPS has 'grave concern' about plans to not renew its licence

The Jamaica Public Service Company (JPS) is expressing "grave concern" about the Government's announcement that it will not renew the company’s all-island licence under the existing terms.

In a media release on Tuesday, JPS confirmed it is in receipt of formal notification from the Government, indicating its “intention of acquiring the Licensed Business at the expiration of the term of the Licence (being July 8, 2027)”.

JPS President and Chief Executive Officer, Hugh Grant, said "this development has several implications for the energy sector, and for the country in general. The JPS leadership, shareholders and legal teams will review the implications, while engaging key stakeholders.

"Regardless of the path forward, we assure our customers that JPS remains steadfast in our commitment to deliver safe, reliable, resilient and cost-effective electricity service to the nation,” he said.

The current JPS licence expires on July 8, 2027.

Energy Minister Daryl Vaz 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”.

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 Vaz said at a press conference on Tuesday morning.

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