New Electricity Licensing Arrangement in the Works — Vaz

Negotiations have begun to develop a new electricity licensing arrangement for Jamaica, ahead of the expiration of the current licence held by the Jamaica Public Service (JPS) in July 2027.

Details were shared by Energy Minister Daryl Vaz during a press conference at the ministry’s offices in New Kingston on Tuesday, where he confirmed that preliminary discussions and meetings have already taken place and that the Government has contracted an overseas consultant to assist with the process.

According to Vaz, Permanent Secretary Carol Palmer is chairing the negotiating team and has been given strong directives on the importance of the talks. The minister said the Government is hopeful the negotiations can be concluded before July 2027, adding that stakeholders will be invited to consultations and the public will be kept informed as discussions progress.

The current all-island electricity licence held by JPS expires in July 2027. In July, Vaz announced that the Government will not renew the licence under the existing terms, noting that new arrangements must be more favourable to the people of Jamaica.

Vaz also addressed the recently announced seven per cent adjustment in electricity bills, which the Office of Utilities Regulation (OUR) has advised will take effect in December bills, covering electricity consumed in November.

The minister said the increase reflects higher fuel costs and the temporary loss of natural gas following Hurricane Melissa, and that the OUR has indicated it may take up to six months for electricity-generation costs to stabilise.

He noted that the adjustment — estimated at about $1,000 for customers using 250kWh — was disclosed in the interest of transparency, and that JPS and the OUR have agreed to defer part of the increased costs to reduce bill shock.

While noting that similar increases have occurred before, including an 11 per cent adjustment in May, Vaz stressed that the Government remains committed to securing a better electricity licence that protects the interests of all stakeholders.

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