Government Notifies JPS: No Renewal of Current Licence Terms Beyond 2027 Amid Rising Public Concerns

Kingston, Jamaica – July 1, 2025 | Jamaica Live

In a landmark move that could reshape Jamaica’s energy landscape, Minister of Energy Daryl Vaz has formally written to the Jamaica Public Service Company (JPS), notifying the utility provider that the Government will not renew the current All-Island Electric Licence under existing terms upon its expiration on July 8, 2027.

The notice, issued under Condition 27 of the current licence agreement, provides the Government of Jamaica with the option to acquire the licensed business at the end of the licence term. However, Minister Vaz made it clear that the Government has no intention to operate the utility directly.

“It is not the intention of the Government of Jamaica to take charge of the operations of JPS,” the Minister stated. “Prior to the expiry of the current licence in 2027, we intend to negotiate new licensing terms and conditions with potential investors that are favourable to the people of Jamaica.”

“I wish to advise the country that this morning in my capacity as Energy Minister, I wrote the Jamaica Public Service company (JPS) and gave formal notice of the Government’s intention upon expiration of the current all island licence NOT to renew under existing terms.

My letter to the JPS was written pursuant to Condition 27 of the licence which provides for the Government of Jamaica to acquire the licensed business at the expiration of the term of the licence –  that expiration date being July 8, 2027. It is not the intention of the Government of Jamaica to take charge of the operations of JPS. Prior to the expiry of the current licence in 2027, we intend to negotiate term new licensing terms and conditions with potential investors which are favourable to the people of Jamaica.”

Widespread Public Dissatisfaction

The announcement comes at a time of mounting public frustration with JPS over issues of cost, service access, and reliability.

Many Jamaicans have voiced concern about:

• High electricity bills, with numerous complaints of unexplained spikes, especially following natural disasters such as Hurricane Beryl. There is also growing resentment that paying customers are being burdened with the financial consequences of electricity theft, a long-standing issue in several communities.
• The closure of 10 out of 15 JPS customer service offices, which has created service gaps and limited access to in-person assistance across several parishes.
• Service reliability, with the Office of Utilities Regulation (OUR) reporting a rise in forced outages, often linked to equipment failure and vegetation overgrowth. These recurring disruptions have led to questions about the adequacy of JPS’s infrastructure investment and maintenance programs.

Steps Toward Reform

In response to the escalating concerns, both the Government and regulatory bodies have begun taking measures to address the situation:

• The Government of Jamaica has set up official email channels for customers to submit complaints related to billing and service issues—especially in the aftermath of hurricanes.
• The OUR has called on JPS to present a comprehensive plan to address reduced service access and customer inconvenience resulting from office closures.
• Through a prepaid electricity program, the Government has allocated funding to assist first-time JPS customers in safely connecting to the grid, promoting better energy management and affordability.

JPS, for its part, has reported improvements in power reliability through the implementation of smart grid technology, updated equipment, and enhanced vegetation management. However, public confidence in the company remains shaky.

Monopoly and Market Structure Concerns

JPS currently holds a monopoly on electricity transmission and distribution, controlling the infrastructure that delivers power across the island. While the company does not have an exclusive licence on electricity generation, its grip on distribution has raised long-standing concerns about competition, pricing, and innovation.

The Jamaican Government owns roughly 20% of JPS, while regulatory oversight is conducted by the Office of Utilities Regulation. This complex relationship has sparked debate over the future of the electricity sector:

• Some stakeholders advocate for liberalizing the grid, arguing that opening the transmission and distribution market could lead to better service and lower costs.
• Others caution that dismantling the monopoly could risk destabilizing the power system, which relies on coordinated infrastructure management.

Looking Ahead

By choosing not to renew the current licence on existing terms, the Government has effectively signaled the start of a new chapter in Jamaica’s energy policy—one that may introduce new players, revised regulations, and a renewed focus on efficiency, equity, and accountability.

As 2027 approaches, the Ministry has committed to transparent negotiations and public engagement, ensuring that the country’s energy future serves the best interests of the Jamaican people.

Jamaica Live will continue to follow this developing story and provide updates as further decisions unfold.