Opposition urges Government to secure fairer terms in JPSCo licence negotiations

The parliamentary Opposition has cautioned the Government to ensure that its negotiations on a new Jamaica Public Service Company (JPSCo) licence result in fairer terms, real competition, and lower energy costs.

At the same time, the People’s National Party (PNP) appeared to mock the reason given by the Government for its decision not to renew JPSCo’s all-island licence.

“After nine years in office, the Government is only now waking up to the reality that the high cost of electricity is strangling growth,” said Opposition Spokesman on Energy, Phillip Paulwell.

He accused Energy Minister Daryl Vaz of failing to improve the energy sector.

“It is unacceptable that Minister Vaz has failed to bring forward updated legislation for the sector, even though the Electricity Act passed under the PNP Government in 2015 required a review by 2020,” Paulwell said in a statement on Tuesday.

“Yet up to now, in 2025, no review or new legislation has been brought to the House (of Representatives) by this Minister. Jamaicans deserve bold, timely leadership, not last-minute announcements and excuses.”

The decision not to renew JPSCo’s licence under the existing terms was announced by Vaz earlier on Tuesday during a media briefing at Jamaica House in St Andrew.

JPS has a monopoly on the distribution of electricity in Jamaica.

Vaz said the decision not to renew the licence under the current terms has already been communicated to JPSCo.

He cited Condition 27 of the licence, which allows for the Government of Jamaica to acquire JPSCo’s operations at the expiration of the agreement.

The current JPSCo licence expires on July 8, 2027.

“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 minister told journalists.

The existing licence came into effect in 2001 when the PNP formed the government.

Paulwell acknowledged that a lot has changed since then.

He noted, as an example, electricity price has increased from US$0.25 per kilo-watt-hour in 2016 to the current rate of US$0.40 per kWh today, driven in large part by heavy taxation and neglect.

“I have long held the view that the conditions under which the JPSCo licence was granted in 2001 have changed substantially, and this reality demands new terms that better serve Jamaicans today,” he said.

Paulwell said the Opposition will continue to “fight for lower electricity costs and policies that grow the economy and protect families.”

- Livern Barrett

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