Daryl Vaz outlines next steps after Jamaica blackout, fare hikes and oil exploration update

Energy, Transport and Telecommunications Minister Daryl Vaz says Jamaica’s June 5, 2026 islandwide power outage was unacceptable and will be reviewed beyond the preliminary reports from the Jamaica Public Service Company and the Office of Utilities Regulation.

Vaz said the early report, required within 48 hours under the OUR Act, points to issues similar to past national blackouts. He said the failure began during heavy rain and lightning, with a problem linked to the Rockfort area and the Hunts Bay-Rockfort transmission line, but should have been contained instead of spreading across the grid and shutting down generation, including independent power suppliers.

The minister said he will seek an independent consultant to examine the JPS and OUR reports. He also said the existing JPS licence does not clearly require compensation for customers, but argued the company has a moral responsibility to consider losses suffered by its roughly 690,000 customers. Vaz said planned changes to the Electricity Act, the OUR Act and the new electricity licence due in 2027 should include stronger compensation and accountability provisions.

On public transport, Vaz said the approved fare adjustment was split into two 8 per cent increases, effective June 2 and July 1, to reduce the inflationary shock of applying the full 16 per cent at once. He said operators had waited since 2023 for the balance of an agreed increase, but the Government also had to consider consumers and wider transport costs. He warned that the Transport Authority will have to monitor routes where operators may try to charge above the new regulated fares.

Vaz also said Jamaica has not discovered commercial oil, but United Oil and Gas has found traces of oil and gas under its exploration licence. He said the company would need an investment partner before applying for a drilling licence, with one well estimated at US$60 million to US$80 million. Any drilling proposal, he said, would require environmental and social assessments, stakeholder consultations, permits and Cabinet approval, particularly as the area of interest is in eastern Jamaica, including St. Thomas.

On telecoms, Vaz said the OUR is close to acquiring equipment to independently test service quality amid complaints about dropped calls and calls going to voicemail. He said stronger verification, possible sanctions, network investment and competition will be important to improving service.