Gov't will reset electricity sector to benefit the people, says Vaz

 

The Jamaica Public Service Company (JPS) could lose its monopoly as the country's sole power provider as the Ministry of Energy engages in full negotiations for a new electric licence.

 

During his contribution to the Sectoral Debate in the House of Representatives on Tuesday afternoon, Energy Minister Daryl Vaz said the government intends to reset the electricity sector in such a way that the people primarily benefit. 

 

He added that the country has not been well served by the electricity industry, referencing the arrangements established by the previous administration - the JPS licence issued in 2001 and the Electricity Act in 2015.

 

"Under this licence, electricity prices remain among the highest in the region. This is intolerable, both for family budgets and our critical private sector. However, I can assure you that we will do whatever it takes to do that, whether it be through a newly negotiated licence with the JPS, or entirely new arrangements, all options are on the table. JPS have done what they can do to manage the system with the constraints of a regulatory framework. I thank their shareholders. However, the framework within which this licence operates need to adapt and we cannot continue the system where 30% of the power is stolen," he declared. 

 

The current electric licence issued to JPS will expire in 2027, and renewal discussions have started. 

 

The Minister previously indicated that the government has engaged a third-party negotiator through the Inter-American Development Bank. 

 

He said extensive consultations will continue as the government works to arrive at the best possible outcome. 

 

Mr. Vaz added that the government's plans in relation to the licence will soon be made public.