Gov’t In Negotiations To Restructure JPS Licence – PM Says Energy Costs Must Come Down

Prime Minister Andrew Holness has confirmed that the Government is now locked in active negotiations with the Jamaica Public Service Company (JPS) to redesign its current all-island licence, which is set to expire on July 8, 2027.

Speaking at the launch of a new LNG-powered co-generation processing plant by Best Dressed Chicken in Spring Village, St Catherine, the Prime Minister emphasized the need to increase efficiency and accountability within the structure of JPS’s operations. The redesign is part of a broader strategy to bring down energy costs for households and businesses across the island.

The announcement comes weeks after Energy Minister Daryl Vaz revealed that the Government would not renew JPS’s licence under existing terms. Instead, officials plan to use Condition 27 of the agreement, which allows for the negotiation of new terms or investor participation, without seeking a full takeover of JPS operations.

Currently, JPS holds a monopoly on electricity distribution across the country. The restructuring aims to disrupt that monopoly, paving the way for more competitive and climate-resilient energy solutions.

During his address, the Prime Minister highlighted the urgency of achieving energy security, noting the vulnerabilities Jamaica faces from climate change. Though the country contributes little to global emissions, its exposure to natural disasters and energy shocks remains high.

The administration intends to integrate more climate-friendly fuels into the energy mix — including solar, hydro, and modular nuclear technology — and has pledged to remain ready to adopt emerging technologies as they become viable.

Holness also acknowledged the long transition from heavy fuel oils to LNG, a process that took nearly a decade, but positioned Jamaica for greater energy stability.

The Prime Minister commended Jamaica Broilers Group, parent company of Best Dressed Chicken, for its US$8 million investment in the new plant, which is expected to significantly boost fuel efficiency and shield the company from global energy market shocks.

This bold energy push, Holness suggested, reflects the Government’s broader commitment to fiscal discipline, national development, and climate responsibility.