Private sector groups welcome government’s decision on JPS licence

The Jamaica Chamber of Commerce, the Jamaica Manufacturers and Exporters Association, and the Private Sector Organisation of Jamaica have welcomed news that the Government will not renew the Jamaica Public Service Company’s (JPS) all-island licence under the existing terms.

JPS is the sole distributor of electricity in Jamaica.

Energy Minister Daryl Vaz, speaking at a media briefing on Tuesday, said the decision not to renew the licence under the current terms has already been communicated to the company.

Vaz 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”.

In a joint statement today, the private sector organisations argued that Jamaica’s electricity sector is in urgent need of reform.

They stated that high energy costs have long presented a significant barrier to growth for businesses and an undue burden on households.

“The Government’s objective to renegotiate licensing terms in pursuit of more competitive pricing and improved national energy security is aligned with longstanding calls from the business community for structural transformation in this space.”

Reform is not optional, it is essential, they stated.

“As representatives of Jamaica’s private sector, we fully support the Government’s commitment to developing a modern, efficient, and sustainable electricity system—one that leverages the global decline in renewable energy costs and prioritises affordability, reliability, and environmental responsibility. This transition is critical to Jamaica’s long-term economic resilience.”

“We are particularly encouraged by the Minister’s assurance that this process will be consultative, and we respectfully request formal engagement of private sector stakeholders throughout the design and implementation of the new energy framework.”

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