Negotiations for new electricity licence under way - Vaz

Energy Minister Daryl Vaz says negotiations to develop a new electricity licensing arrangement for Jamaica have started.

He has further indicated that a consultant from overseas has been contracted by the Government.

Vaz provided the details while responding to questions during a press conference at the ministry’s offices in New Kingston on Tuesday.

“Negotiations have, in fact, already started. Preliminary discussions have started [and] meetings have taken place. Permanent Secretary [in the Energy Ministry], Carol Palmer, is the chair of the negotiating team and has very strong instructions in relation to the importance of this," Vaz said. We would hope that we can get it done before July 2027… but definitely by [then]. Stakeholders will be invited to consultations and, of course, we will keep the country abreast of the negotiations as [they progress]".

The current electricity licence held by Jamaica Public Service expires in July 2027.

In July, Vaz announced that the Government will not renew the all-island licence under the existing terms. At the time, he said prior to the expiration of the current licence, the Government intends to negotiate new licensing terms and conditions with potential investors “which are favourable to the people of Jamaica”.

Meanwhile, Vaz also indicated that the Government has taken note of the announced seven per cent adjustment in JPS electricity bills affecting customers with active supply.

The Office of Utilities Regulation has advised that this adjustment will be reflected in December bills, covering electricity consumed in November.

Minister Vaz said the adjustment reflects higher fuel costs and the temporary loss of natural gas availability in the aftermath of Hurricane Melissa.

“In approving this measure, the OUR has acknowledged that, given the scale and impact of the disaster, it may take up to six months for electricity-generation costs to stabilise and for energy consumption patterns to return to normal,” he stated.

Mr. Vaz said the announcement – equivalent to approximately $1,000 for customers using 250kWh of electricity – was made public in the interest of transparency and accountability.

He said, importantly, JPS and the OUR have worked collaboratively to defer a portion of these increased costs, spreading recovery over several months to avoid bill shock and ease the burden on customers.

“Recognising the risk that further adjustments could place additional pressure on households and businesses, the OUR has also urged JPS to engage closely with the regulator before applying any additional IPP and fuel charges over the next six months, ensuring that the recovery process remains gradual, transparent, and manageable for consumers,” Mr. Vaz stated.

He further noted that such rates are not unprecedented, pointing out that in May of this year, an 11 per cent increase was approved, driven by fuel prices and other variables.

The Minister noted that although the seven per cent increase is significantly less than the amounts announced after Hurricane Beryl in 2024 – some as high as 16 per cent – “the position of the Government is that we must have a licence that protects the interests of all stakeholders… a better licence must be the way forward”.

JIS News contributed to this report.

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