PNP wary of decision not to renew JPS licence but business community happy

 

The opposition People's National Party is calling for clarity on the government's decision not to renew the licence of the Jamaica Public Service Company when it expires on July 8, 2027.

 

The government has sought to justify its decision not to renew the all-island electricity licence for the JPS under the current terms on the basis of the argumet that it would place the country at a disadvantage.

 

Energy Minister Daryl Vaz says, despite the introduction of renewable energy, Jamaicans are still not seeing any significant reduction in electricity prices

 

The PNP's Phillip Paulwell, Opposition Spokesperson on Energy & Climate Change, wants the energy minister to tell the country if the government plans to acquire the business of the JPS.

 

Mr Paulwell, speaking Tuesday on Radio Jamaica's Beyond the Headlines, said any new licence should not go beyond 10 years.

 

He said a new licence must have certain provisions that enable a better framework than the one that currently exists.

 

In contrast with Opposition's reticence on the matter, the business community has reacted positively to the government's decision not to renew the existing Jamaica Public Service Company  all-island electricity licence.

 

Jamaica Chamber of Commerce, Jamaica Manufacturers and Exporters Association, and the Private Sector Organisation of Jamaica have commended Energy Minister Daryl Vaz for his  transparency and decisive action in formally advising the JPS of the government's decision.

 

The groups say the government's objective to renegotiate licensing terms in pursuit of more competitive pricing and improved national energy security is aligned with long-standing calls from the business community for structural transformation in this space. 

 

They contend that high energy costs have long burdened households and businesses. 

 

They also point to system losses of around 28 percent — nearly double the regional average.

 

Business leaders are calling for cheaper renewables, stricter action against electricity theft, and affordable financing for cleaner energy projects.

 

The private sector representatives say they stand ready to work with the government to deliver a modern, reliable, and more affordable energy system for Jamaica.

 

Owen Gunning, President of the Jamaica Society of Energy Engineers and Energy Consultants, is cautioning, though, that it is not feasible for the government to take over the licence of the JPS. 

 

Noting that, under the current licence, the generation of electricity is already open to competition, "and you have at least eight companies that are generating power," he said if the supply component of the taken away from  JPS, "it will affect them."

 

Mr Gunning has also highlighted the challenges any competitor in the supply of electriccity will face: "Who is going to pay for the transmission and distribution lines that you have, which is solely owned by JPS now? If you are to bring in a new supplier, how long will it take them to outfit the country with supply lines and poles... to supply electricity to consumers?"