Government of Jamaica Serves Formal Notice to JPS: Current Licence Will Not Be Renewed Under Existing Terms
The Government of Jamaica has formally notified the Jamaica Public Service Company (JPS) of its intention not to renew the current all-island electricity licence under the existing terms upon its expiration on July 8, 2027.
Energy Minister, the Honourable Daryl Vaz, MP, made the announcement on Tuesday (July 1, 2025), underscoring the Government’s commitment to meaningful reform in Jamaica’s electricity sector and the delivery of better outcomes for the Jamaican people.
“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,” Minister Vaz announced.
The Government’s decision is rooted in the need to reduce Jamaica’s high electricity costs, expand the use of renewables, and introduce more favourable licensing arrangements. Minister Vaz emphasized that “the people of Jamaica have NOT been served well by the existing electricity supply arrangements. The terms under the current licence have yielded electricity prices which are amongst the highest in the region. The arrangements are deeply flawed and in need of significant reform.”
The Government’s notification to JPS is in accordance with Condition 27 of the current licence, which provides for the Government of Jamaica to acquire the licensed business upon expiration.
Minister Vaz was clear in stating that the Government does not intend to take over operations of the JPS. Instead, the Government will pursue negotiations for a new licence with more favourable terms for the Jamaican people and is open to exploring offers from potential investors, including JPS.
“The action I have taken today, on behalf of the Government of Jamaica, in giving formal notice to the JPS of the Government’s intention to acquire the licensed business at the expiration of the term of the licence, is a step towards achieving the change which our country demands,” Minister Vaz stated.
The Energy Minister assured Jamaicans that this move will not disrupt electricity services and that stability will be maintained throughout the transition period.
In the meantime, Minister Vaz reaffirmed the Government’s goal: “This administration of Prime Minister Andrew Holness will NOT enter into arrangements which do not provide a framework for positive reformation of the energy sector. We fully intend to deliver real and sustainable results for the people of Jamaica.”
The Government will now move forward with the development of a long-term plan aimed at securing more reliable, affordable, and renewable energy solutions for Jamaican households and businesses.