GOVERNMENT TO END JPS LICENCE — PLANS NEW ENERGY DEAL FOR JAMAICA

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📍KINGSTON, JAMAICA — JUNE 25, 2025

In a bold move to reshape Jamaica’s energy future, the Government has officially notified the Jamaica Public Service Company (JPS) that it will not renew the current all-island electricity licence when it expires in July 2027.

⚖️ NO TO OLD TERMS — YES TO NEW DEALS

Speaking at a press conference Tuesday, Energy Minister Daryl Vaz announced the decision, citing a need for more affordable electricity, energy security, and the inclusion of renewable energy.

“It is not the intention of the Government of Jamaica to take charge of JPS operations,” said Vaz. “We intend to negotiate new licensing terms with potential investors — terms that are more favourable to the Jamaican people.”

📃 WHAT THIS MEANS

  • The Government gave notice under Condition 27 of JPS’s licence.

  • This clause allows the State to either acquire or end the licence at the 20-year mark.

  • The current licence began in 2001, with amendments under the PNP.

JPS, currently majority-owned by Marubeni Corporation (Japan) and Korea East-West Power, may reapply — but other investors may now enter the mix.

💰 THE PROBLEM: HIGH COST, LOW RENEWABLES

“The existing arrangements are deeply flawed,” said Vaz.
“Jamaica has some of the highest electricity prices in the region.”

He criticized the licence’s failure to encourage large-scale integration of renewables. Over 90% of Jamaica’s power is generated from imported fossil fuels, making energy bills volatile and expensive.

🌱 THE PLAN: CLEANER, CHEAPER POWER

Vaz made it clear: Jamaica must pivot to renewables.

“We are determined that consumers should benefit from the global shift in energy production,” he said.

He emphasized lower energy bills, better national energy security, and climate-friendly solutions as goals of the new licensing strategy.

🛑 WILL POWER GO OUT?

Not likely. Vaz says the Office of Utilities Regulation (OUR) is prepared to ensure continuous electricity supply during the transition.

“I am not concerned,” he said. “We handled Beryl. We’ll handle this.”

👥 STAKEHOLDER TALKS PLANNED

The Government has two years to negotiate and intends to include:

  • JPS

  • Private Sector Organisation of Jamaica (PSOJ)

  • Opposition leaders

  • Local energy experts and investors

“This is a national issue — not a partisan one,” Vaz added.

Tired of high light bills? So is the Government.

Watch this space as Jamaica prepares for an energy revolution.
Share your thoughts — should JPS stay or go?

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