KINGSTON, Jamaica, CMC – Science, Vitality, Telecommunications and Transport Minister, Daryl Vaz, stated Tuesday that the federal government will not be keen to resume the all-island licence with the Jamaica Public Service’s (JPS) to provide electrical energy with out re-negotiation of the present phrases.
Vaz, talking at a information convention, advised reporters that the licence is because of expire on July 8, 2027, and that the Andrew Holness authorities is open to exploring different contracts with events.
“I want to guarantee the nation that the federal government’s serving of formal discover to JPS of its intention to accumulate the license enterprise augurs effectively in direction of stability within the electrical energy sector, whilst we negotiate phrases which higher serve the individuals of Jamaica.
‘There can be no disruption to service supply prompted by our transfer to place ourselves able to safe higher outcomes for the customers. The licence is explicit, and the phrases of the licence and till 2027, these situations are in place,” Vaz advised reporters.
Vaz stated he has already written to JPS in his capability as power minister, giving “formal discover” of the federal government’s intention upon the expiration of the all-island licence, to not renew beneath current phrases.
He stated the letter was written by the licence settlement, which supplies that the federal government of Jamaica could purchase the licence enterprise upon the expiration of the licence phrases…
“Let me make it clear it isn’t the intention of the federal government of Jamaica to take cost of the operations of the JPS,” he stated, noting that “earlier than the expiration of the present licence in 2027 we intend to renegotiate new licencing phrases and situations with potential traders that are favorable for the individuals of Jamaica”.
He insisted that the 20-year licence had given the JPS the facility to function, was “flawed”, leading to “flawed service”, and that beneath its present phrases, the licence has not served Jamaica effectively.
He stated that the phrases beneath the present licence have yielded electrical energy costs which might be amongst the best within the area.
“There was a big international discount in the price of renewables. The federal government of Jamaica is decided that customers of electrical energy in Jamaica must be positioned in one of the best place to learn from these developments.”
Vaz stated the present licensing preparations with the JPS don’t present adequate incentives to carry renewables onto the grid at scale, and so they present for era through imported fossil fuels, which isn’t cost-effective.
“We’re getting a possibility to attract a line within the sand, be taught from our errors on a fair keel to get one of the best outcomes,” Vaz stated, including he would cope with any dip in service high quality by using the power of the Workplace of Utilities Regulation (OUR).
