Power pact push - Cabinet signs off on agreement to be negotiated with JPS as new licence hangs in the balance

The Cabinet has approved a “heads of terms” agreement for a new licence that the Government is to negotiate with the Jamaica Public Service (JPS), subject to a non-disclosure agreement between the company and the administration. 

A heads of terms agreement sets out the basic terms of a commercial transaction between parties. 

Daryl Vaz, minister of energy, telecommunications and transport, made the announcement in Parliament yesterday, saying that a review of the Electricity Act and the regulatory framework will be undertaken to give effect to the new licensing regime. 

In his contribution to the Sectoral Debate, Vaz reminded the country that if the Government is unable to reach an agreement with the JPS, it intends to turn to the international market to identify another provider. 

According to Vaz, the process has also begun to engage international legal counsel to support the negotiations as the ministry seeks to secure the most efficient and effective outcome. 

The minister also announced that the power-wheeling regulations have been completed and gazetted. He said final discussions are under way to settle tariffs and billing arrangements so that implementation can begin shortly. This, he said, will allow more participants to access and trade electricity across the grid. 

In his recent contribution to the Sectoral Debate, opposition spokesman on energy Phillip Paulwell urged the Government to implement wheeling immediately, noting that the facility allows a large commercial or industrial enterprise to generate power at one location and transport it across the national grid to its other facilities, subject to a reasonable transmission fee. 

Giving an update on the restoration of power following Hurricane Melissa, Vaz said that, effective May 5, 2026, the number of customers without electricity stood at 1,343. To date, he said, power has been restored to 99.81 per cent of JPS customers. 

In Westmoreland, 1,283 customers remain without power, while the number in St Elizabeth stands at 60. Vaz noted that of the remaining customers awaiting restoration, approximately 40 per cent, or 538 customers, are not yet ready to safely receive power because of property-related damage. That leaves about 805 customers who are able to receive electricity service still awaiting reconnection. 

He said restoration work continues to be affected by difficult terrain, limited access to remote areas, adverse weather, and challenging ground conditions, all of which have slowed progress. 

Vaz also highlighted that the Generation Procurement Entity has launched the largest renewable energy tender undertaken in the Caribbean, initially comprising 220 megawatts of renewable energy paired 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.” 

edmond.campbell@gleanerjm.com