Energy Minister: “Time for change” as electricity prices remain among region’s highest
KINGSTON, Jamaica — The Government of Jamaica has officially notified the Jamaica Public Service Company (JPS) that it will not renew the utility’s all-island licence under its current terms when it expires on July 8, 2027.
The announcement was made by Minister of Science, Energy, Telecommunications and Transport, Hon. Daryl Vaz, during a press conference at Jamaica House on Tuesday, July 1.
Vaz said the Government had invoked Condition 27 of the current licence, which gives the State the option to acquire the licensed business at the end of its term.
Push for cheaper, modern, renewable energy
According to the Minister, the current licence has contributed to electricity prices that are among the highest in the Caribbean, and does not adequately support renewable energy integration or long-term affordability.
“The existing arrangements are deeply flawed and in need of significant reform,” Vaz declared.
He said that Jamaican consumers deserve lower electricity costs, greater reliability, and a power grid that embraces the global shift to renewables. The Government plans to use the remaining two years to develop a comprehensive reform plan for the energy sector.
JPS responds with ‘grave concern’
In response, JPS President and CEO Hugh Grant acknowledged receipt of the formal notice and expressed “grave concern” over the implications.
“This development has several implications for the energy sector and for the country,” Grant said, adding that the company’s leadership, shareholders, and legal teams will be reviewing the matter carefully.
Despite the uncertainty, JPS has pledged to maintain its commitment to delivering “safe, reliable, resilient, and cost-effective electricity.”
Government clarifies: No takeover intended
Minister Vaz emphasized that the Government does not intend to take over operations of the JPS.
Instead, new licensing terms will be negotiated with potential investors ahead of the 2027 deadline, with a focus on terms that “better serve the people of Jamaica.”
The existing JPS licence was granted in 2001 under a previous PNP administration. The current policy shift signals a strategic push toward energy sovereignty, affordability, and greener technologies.
