Vaz: New electricity licence to deliver real change
Published:Wednesday | May 21, 2025 | 12:11 AM
Calling the current cost of electricity in Jamaica “intolerable”, Energy Minister Daryl Vaz has criticised the existing licence framework with the Jamaica Public Service Company (JPS), stating that local electricity rates remain among the highest in the region.
He said the framework within which the current licence operates needs to change, noting that it does not provide the right incentives and it is failing the Jamaican people.
“The world has changed, technology has changed, and our expectations for energy provision have changed. We cannot continue with an electricity system which has such high costs, and we cannot continue with a system on which 30 per cent of the power is stolen,” Vaz said in his contribution to the Sectoral Debate in Parliament on Tuesday.
Vaz indicated that the current arrangement was not favourable to family budgets and the private sector as it limits the creation of jobs and economic prosperity.
He argued that for too long, the country has been locked into this legacy arrangement, which does not work for a modern Jamaica.
The energy minister reiterated that the global and economic situation has changed substantially since 2001 and, as such, the terms of the licence, which was renewed in 2015, were not suitable then and are even less suitable now.
BERYL BLACK EYE
“A stark example of this, and one that was felt by every single Jamaican, was the failure of JPS in the aftermath of Hurricane Beryl. The delays in restoring power and the missed deadlines were unacceptable,” he said.
Noting that the Government now had the “opportunity to deliver real change” for the first time since 2015, Vaz said this will be done through a newly negotiated licence with JPS or entirely new arrangements.
He said the proposed changes to the licence cannot be considered in isolation, adding that JPS had done its part in managing the system within the constraints of a regulatory framework which is not suitable for a modern energy and electricity system.
Vaz hailed the work of the joint select committee of Parliament that was tasked with reviewing the Electricity Act.
He said the committee consulted widely, encouraging participation from the public and industry alike as it reviewed every aspect of the law.
The JPS licence will come to an end in 2027, but negotiations for a new licence should have started from 2023.
Vaz said the Government will present its plans shortly in relation to the licence.