Government Negotiating New Electricity Licence With JPS but Keeping a Backup Plan

Kingston, Jamaica, 16 July 2026

The Government is negotiating with the Jamaica Public Service Company (JPS) over a new all-island electricity licence, while also keeping other options open, Energy Minister Daryl Vaz has told Parliament. The current licence runs out on 8 July 2027.

Mr Vaz, Minister of Energy, Transport and Telecommunications, gave the update in the House of Representatives on Tuesday, 14 July.

Strengthening the negotiating team

The Minister said the talks follow a set process that includes a range of valuations carried out alongside the negotiations. He noted that JPS’s two majority shareholders, East-West Power of Korea and Marubeni of Japan, are highly rated international companies, and said Jamaica needs strong support behind its own team.

A first phase of technical assistance has ended, and the Government is seeking Cabinet approval for a second phase. It is also considering hiring financial advisers to set out its options, and, through the Attorney General’s Chambers, looking for outside legal and technical specialists to work with the department.

Two tracks

Mr Vaz confirmed that other parties have approached the Government about the licence. He said negotiations with JPS will continue in good faith, but the Government must have a fallback plan because time is short, and it will not allow anyone to run down the clock to force unfavourable terms on the country.

He described the process as difficult and said “time is not on our side”, promising to update Parliament as soon as there is something concrete to report.

What it means for households

The terms of the next electricity licence will shape how Jamaica’s grid is run and invested in for years, which in turn affects the cost and reliability of power for homes and businesses. Electricity is one of the largest recurring expenses for many households and landlords, and a factor in the cost of running rental and commercial property. Homeowners and investors will want to watch how the talks progress over the coming year, as the July 2027 deadline approaches.