Jamaica moves ahead with JPS licence talks as electricity sector reform advances
Key Points(5)
- The Government is pressing ahead with negotiations for a new electricity licence for the Jamaica Public Service Company Jamaica Public Service Company, as officials also move forward with broader plans to overhaul the country’s power sector ahead of the current licence’s 2027 expiration.
- Energy, Transport and Telecommunications Minister Daryl Vaz told Parliament on Wednesday that discussions with JPS are under way, alongside legal, policy and stakeholder consultations aimed at reshaping the regulatory framework governing electricity supply.
- To address these issues, Vaz outlined a two-track approach.
- The first involves negotiating a new licence aligned with national energy goals and consumer protection priorities.
- The second prepares alternative arrangements in the event talks do not deliver what the Government considers acceptable outcomes.
The Government is pressing ahead with negotiations for a new electricity licence for the Company Jamaica Public Service Company, as officials also move forward with broader plans to overhaul the country’s power sector ahead of the current licence’s 2027 expiration.
Energy, Transport and Telecommunications Minister Daryl Vaz told Parliament on Wednesday that discussions with JPS are under way, alongside legal, policy and stakeholder consultations aimed at reshaping the regulatory framework governing electricity supply.
He said the Government has already reviewed the existing licence and identified several weaknesses, including high electricity costs, limited incentives for efficiency, slow renewable energy integration, significant system losses passed on to consumers, and insufficient provisions for grid resilience and competition.
To address these issues, Vaz outlined a two-track approach. The first involves negotiating a new licence aligned with national energy goals and consumer protection priorities. The second prepares alternative arrangements in the event talks do not deliver what the Government considers acceptable outcomes.
“The Government remains committed to creating an electricity sector that is more affordable, reliable, resilient, competitive, and responsive,” Vaz said, adding that continuity of service and protection of the public interest remain central to the process.
A dedicated negotiating team has been established, including representatives from the Energy Ministry, the Ministry of Finance and the Public Service, the Attorney General’s Chambers, the Consumer Advisory Committee on Utilities, local experts, and international legal and technical advisers.
The Government is also preparing a Green Paper on Electricity Sector Reform, which is expected to be completed in July before being submitted to Cabinet for review.
Vaz said the reforms aim to strengthen accountability in the sector, improve affordability, promote competition, and prevent the re-emergence of an entrenched monopoly.
He also pointed to the June 5 islandwide blackout as a catalyst for renewed scrutiny of Jamaica’s electricity framework. The incident, he said, has intensified discussions around consumer protection, regulatory oversight, and compensation for losses linked to major system failures.
The minister added that the Government is reviewing both the Electricity Act and the Office of Utilities Regulation Act to ensure stronger enforcement tools, clearer performance standards, and improved accountability mechanisms.
He further stressed that future licensing arrangements must include resilience requirements, customer service obligations, and penalties for significant system disruptions.
As the Atlantic hurricane season continues, Vaz urged greater national preparedness, noting that the recent outage underscored the vulnerability of critical infrastructure to external shocks.
He also called on Jamaicans to take personal responsibility for emergency readiness while government and utility providers strengthen system resilience.
