GOJ in the process of selecting consultant for review of JPS licence
Published:Wednesday | November 12, 2025 | 12:05 AM
The Government of Jamaica will begin formal discussions in January to either renew or revoke the licence of sole power utility Jamaica Public Service Company Limited, JPS, following the close of a tender to secure a consultant to guide the process.
The tender closed October 30.
“The consulting services are ... to provide advisory on the electricity sector and JPS licence renewal,” the Ministry of Science Energy Telecommunications and Transport said in the tender document.
The assignment, part of the Energy Management and Efficiency Programme, is backed by financing from the Inter-American Development Bank, with additional support from the Japan International Cooperation Agency and the EU Caribbean Investment Facility.
The selected firm must prepare the ministry “to begin formal discussions on implementing the new framework with JPS or alternative investors by January 2026”.
The firm must also determine the appropriate method for “transferring ownership of the JPS”, but the document does not elaborate on what that relates to and whether it impinges on the GOJ’s near 20 per cent ownership in JPS.
Additionally, the consultant will be tasked with developing a comprehensive framework for the Jamaican electricity sector and reviewing documentation submitted by JPS in accordance with the contract. The firm is expected to engage broadly with market stakeholders — including JPS — to ensure the proposed framework is “attractive to potential investors”.
Energy Minister Daryl Vaz previously announced that JPS will be required to reapply for its islandwide electricity licence, rather than receiving automatic renewal. Vaz has argued that opening up the process to competition from other prospective investors would better serve the interest of consumers, amid discontent and arguments that electricity rates are too high and put the country at a comparative disadvantage.
According to the Office of Utilities Regulation, OUR, Jamaica’s average residential electricity rate in 2025 is approximately $50 per kilowatt hour, or about US$0.30, depending on fuel charges and monthly adjustments — placing Jamaica near the top of the regional cost spectrum.
JPS, which holds the exclusive licence to distribute electricity across Jamaica, has historically operated under a licensing framework that allowed for automatic renewal. The current licence, issued on August 27, 2011, replaced the previous licence from 2001 and is set to expire in July 2027.
JPS is jointly owned by Marubeni Corporation, a Japanese conglomerate with a 40 per cent stake, and East West Power Company Limited of South Korea, which also holds 40 per cent. The Government of Jamaica retains 19.9 per cent and individual Jamaicans, through the public market, hold the remaining 0.1 per cent.