Paulwell urges Gov't not to make excessive licence concessions to JPS amid Hurricane Melissa devastation

Opposition Spokesman on Energy, Phillip Paulwell, is warning the Government not to make any excessive compromises to the Jamaica Public Service company (JPS) as it prepares to update the country on the utility's licence.

The call comes as JPS works to restore power in the aftermath of Hurricane Melissa which caused widespread power outages across the island.

Permanent secretary in the Ministry of Energy, Carol Palmer, has already revealed that the JPS has asked the Government to extend its current licence, which expires in July 2027. The request, she said, is intended to help the light and power company secure financing for major restoration work in parishes heavily affected by Hurricane Melissa.

However, Paulwell said in a statement on Friday that “In the face of the desperate situation that we now have, that there should be no greater concessions granted to the JPSCO than are necessary for it to secure funding so as to achieve full restoration of electricity to the grid.”

Minister of Energy, Daryl Vaz is expected to make a statement to Parliament next week on the negotiations with JPS, but the Opposition said any amendments to JPS’s licence must be for the public good.

He noted the Opposition’s preconditions for the granting of a new licence to JPS, key of which is that the licence would not be granted for more than 10 years.

The right of first refusal that the JPS now has should be abolished and any new generating capacity being brought to the grid must be subject to full and fair competition, Paulwell stated.

Further, he said those operators who do their business in the special economic zones should be able to generate and distribute electricity within those zones.

“We also believe that there ought to be greater regulations governing street lights. There are too many lights that do not work and there is no proper accountability for them. We also believe that there should be greater consumer rights protection in any new licence that is granted to enable consumers to have rights against JPSCO for damages to their equipment and so on,” he said.

Vaz previously announced that JPS will be required to reapply for its islandwide electricity licence, rather than receiving automatic renewal. Vaz has argued that opening up the process to competition from other prospective investors would better serve the interest of consumers, amid discontent and arguments that electricity rates are too high and put the country at a comparative disadvantage.

According to the Office of Utilities Regulation, OUR, Jamaica’s average residential electricity rate in 2025 is approximately $50 per kilowatt hour, or about US$0.30, depending on fuel charges and monthly adjustments — placing Jamaica near the top of the regional cost spectrum.

JPS, which holds the exclusive licence to distribute electricity across Jamaica, has historically operated under a licensing framework that allowed for automatic renewal. The current licence, issued on August 27, 2011, replaced the previous licence from 2001.

- Sashana Small

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