Carol Palmer, Permanent Secretary in the Minister of Energy
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Carol Palmer, Permanent Secretary in the Energy Ministry, responding to PAAC chairman Peter Bunting
Permanent Secretary in the Minister of Energy, Carol Palmer, has disclosed that the Jamaica Public Service Company (JPS) has asked the government to extend its current licence, which expires in July 2027.
She said the request is intended to help the light and power company secure financing for major restoration work in parishes heavily affected by Hurricane Melissa.
Speaking during Wednesday's meeting of the Public Administration and Appropriations Committee (PAAC), Mrs. Palmer said the company cannot attract the necessary capital with only two years remaining on the licence as they would not be able to repay within that timeframe.
"And there's no guarantee that there will be a renewed or new licence unless JPS is willing to agree to new terms. And we cannot step back on that. So the issue is, we are now seeking to see how we can assist and facilitate them securing capital," she shared.
"Do you mean by that a sovereign guarantee? asked PAAC chairman Peter Bunting.
"Not sovereign guarantee. I cannot tell you that. But what is being done is that there is a request before us for an extension of the licence that will give them wiggle room is the word I want to use, so they can secure some financing," she explained.
The government is expected to begin formal talks in January on whether to renew or revoke the JPS licence.
A tender to hire a consultant for the process closed on October 30.
JPS currently holds an exclusive licence to distribute electricity across Jamaica, issued in August 2011.
Meanwhile, the Ministry of Energy has written to the Office of Utilities Regulation (OUR) to issue instructions to the Jamaica Public Service to provide communities with projected timelines for restoration of electricity.
Mrs. Palmer said the ministry shares the dissatisfaction of customers still without power, especially in areas that were not hard hit.
The light and power company has shied away from publicising this information out of fear that expectations will not be met. It has instead been giving the percentage of its customer base that has been restored.
Mrs. Palmer said the Energy Ministry has impressed upon the JPS the need for timelines to be made available to the public.
"We have asked JPS to break down the figures because telling people percentages don't mean anything to the average person, right? 76 of what? So we have been pushing, but only this morning I've sent a letter to the OUR because we need the OUR to help us to fight this fight," she insisted.
Based on current projections, it could take up to six months to achieve full electricity restoration to all affected communities following Hurricane Melissa.
But Prime Minister Dr. Andrew Holness said the government wants to see the projected timeline shortened and is working with the JPS to achieve this.
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