Cabinet greenlights heads of terms for fresh JPS licence talks

Cabinet has signed off on a heads of terms framework that will shape negotiations between the Government and the Jamaica Public Service (JPS) for a new operating licence, with the talks to proceed under a non-disclosure agreement between the two sides. A heads of terms document outlines the foundational conditions of a commercial deal between negotiating parties.

The disclosure came from Daryl Vaz, minister of energy, telecommunications and transport, during his contribution to the Sectoral Debate in Parliament yesterday. Vaz indicated that the Electricity Act and the wider regulatory architecture will be reviewed so that the new licensing arrangement can be properly accommodated.

The minister cautioned that should negotiations with JPS collapse, the administration is prepared to look beyond Jamaica's borders for an alternative service provider. He added that the ministry has already started lining up international legal counsel to assist with the upcoming talks, with the aim of producing the strongest possible outcome.

On the parallel power-wheeling reform, Vaz reported that the regulations have been finalised and published in the gazette. He said tariff levels and billing mechanics are in the closing phase of discussion, paving the way for early implementation that will widen access to the grid for additional players who wish to buy and sell electricity.

Opposition spokesman on energy Phillip Paulwell, in his own recent Sectoral Debate remarks, pressed the administration to roll out wheeling without further delay. Paulwell explained that the arrangement permits a sizeable commercial or industrial operator to generate electricity at one site and move it through the national grid to its other premises, in exchange for a fair transmission charge.

Turning to the recovery from Hurricane Melissa, Vaz reported that as at May 5, 2026, only 1,343 JPS customers remained off supply, meaning service has been returned to 99.81 per cent of the utility's account holders. Westmoreland accounts for 1,283 of those still in the dark, while St Elizabeth has 60 outstanding cases.

The minister said roughly 40 per cent of the remaining group, or 538 customers, cannot yet be safely energised because of damage to their own properties. That leaves about 805 households and businesses cleared for reconnection but still waiting for crews. Difficult terrain, restricted access to remote communities, poor weather and unstable ground conditions continue to slow the restoration effort, he said.

Vaz also pointed to progress on the country's renewable push, noting that the Generation Procurement Entity has issued what he described as the Caribbean's largest renewable energy tender. The original package combined 220 megawatts of renewable capacity with 110 MW of battery storage.

"Building on strong market interest and the Government's commitment to accelerating the energy transition, this has now been increased to 300 MW of renewable energy and 150 MW of battery storage, with the tender scheduled for August 2026," Vaz said.