A screen grab of Opposition spokesman on energy Phillip Paulwell addressing a party meeting in St Andrew Northern on Sunday.x
April 2, 2025
JPS licence triggers political battle
Vaz slams Paulwell for engaging in ‘fearmongering’
CABINET member with responsibility for energy Daryl Vaz has scoffed at claims by the Opposition spokesman with responsibility for the portfolio that the Government has failed to respond to a looming crisis surrounding the operating licence of the Jamaica Public Service Company (JPS).
Addressing a meeting to present the People’s National Party’s (PNP) prospective candidate for St Andrew North Eastern last Sunday, Paulwell pointed out that the operating licence for the JPS expires in July 2027 and charged that negotiations for a new licence should have started by July 2023.
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“We are two years out of that but more importantly, the licence requires that by July 2025 the Government must signal to JPS what are its intentions in relation to the licence. We are three months away and all I could hear when I asked the question from the energy minister was that a team from the World Bank is coming to Jamaica to assist the Government in the negotiation, which should have started in 2023,” said Paulwell as he underscored that the deadline is some three months away.
“We are nowhere near that and you know the effect of not telling JPS what the Government is going to do means a roll-over of the current licence with all the present terms and you know that is bad for Jamaica if we are going to get changes to the net billing arrangements so that when you send energy to the JPS…they pay you a price that is reasonable.
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“And there are some important changes that we need to insert in a new JPS licence. For example, there are some consumer protection provisions that we want to put in the licence,” added Paulwell as he singled out issues such as when power surges impact the appliances of JPS customers.
“There are many things we need to do in relation to the [JPS] licence but this Government has sat by doing nothing and I call on the Government tonight to indicate to the country why it has not started these negotiations that were due from 2023. Why are they so tardy? Why have they not energised the Energy Council to get these negotiations going?” questioned Paulwell.
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But in a response on Monday, Vaz told the Jamaica Observer that Paulwell is well aware that negotiations have started with the JPS about the renewal of its operating licence.
Vaz shared a November 12, 2024 letter which his ministry sent to the president and CEO of JPS Hugh Grant signalling an intention to open negotiations on the company’s new licence to address issues including the Government’s policy goal of 50 per cent renewals in Jamaica’s energy mix by 2030.
“Key areas of focus will be the public and national interest which must underpin the terms and conditions to be agreed,” said the ministry in its letter to the JPS.
According to Vaz, Paulwell is well aware that the negotiations have started and he was only interested in “fear-mongering”.
“Despite repeatedly stating that we had already started the negotiations with the JPS several months ahead of the required date, Paulwell has persisted with this false claim,” Vaz told the Observer.
“I want to assure Jamaicans that your Government is working to secure the best possible JPS deal for you and will not allow the PNP or Mr Paulwell to use misinformation and political propaganda to derail this process,” added Vaz.
He said a team from his ministry met with a team from the JPS in January, eight months ahead of the July deadline to initiate discussions.
Meanwhile, the PNP introduced attorney-at-law Stacey Knight, the daughter of veteran politician KD Knight, as the person selected to oppose long-standing Member of Parliament Delroy Chuck in St Andrew North Eastern in the next general election.
