Gov’t begins negotiations with JPS over licence – Holness

Prime Minister Dr Andrew Holness says the Government is currently engaged in “good faith” negotiations with the Jamaica Public Service Company (JPS) to redesign its existing licence.

“The structure of the licence has to be renegotiated for greater efficiency, but also for greater accountability,” Holness said today at the launch of the new LNG-powered co-generation processing plant by Best Dressed Chicken at its facility in Spring Village, St Catherine.

“That is under way already, and the country can be assured that the same way we have tackled the big problems — debt, fiscal management, [and] crime — we’re going to tackle and bring down the cost of energy to households and firms,” he added.

Energy Minister Daryl Vaz indicated last month that the Government would not renew JPS’s all-island licence under the existing terms.

JPS is the sole distributor of electricity in Jamaica.

The current JPS licence expires on July 8, 2027.

At the time, Vaz cited Condition 27 of the licence, which allows for the Government to acquire JPS’s operations at the expiration of the agreement.

However, he said the Government does not intend to take over JPS’s operations, but intends to negotiate new licensing terms and conditions with potential investors “which are favourable to the people of Jamaica.”

In his address, the Prime Minister noted the impact that energy production and consumption can have on the environment.

Although Jamaica’s contribution to climate change is negligible, Holness noted that the island is extremely vulnerable to its consequences, emphasising the importance of achieving energy security.

“If we are going to raise our voices globally about climate change, then we can’t at the same time be irresponsible in how we conduct our own energy consumption. So it's important for us to integrate within our energy provision and our energy mix more climate-friendly fuels,” he said.

He pointed to solar energy, hydro energy, and small modular nuclear plants as options for Jamaica to achieve energy security.

“We should explore all the possible potential energy sources, at least put ourselves in a position that, should they become feasible, we can jump on it very quickly,” he charged.

“It took us almost nine years to plan and transition from heavy fuel oils into having a secure supply chain of LNG,” he said.

Jamaica Broilers Group, the parent company of Best Dressed Chicken, has invested US$8 million into the new plant, which it said will significantly improve fuel efficiency.

The Prime Minister commended the company for the move.

“Jamaica Broilers has now secured for themselves greater energy efficiency. It means that they are far more insulated from the volatility of international shocks in the energy market, which would be chiefly responsible for any unpredictable rise in the price of chicken,” he said.

- Sashana Small

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