The Government says it is willing to consider amending legislation to allow investors within special economic zones (SEZs) to generate and sell electricity to occupants in the zones.

Currently, only the Jamaica Public Service Company (JPS), under an exclusive licence, has the right to supply electricity in Jamaica.

According to Minister of Industry, Investment and Commerce Senator Aubyn Hill, a broader implementation of electricity distribution is necessary within these zones.

“I believe, truthfully, after [Hurricane] Beryl, we need more sources of investors and more sources of delivery of power, so that the country really is not held hostage by only one main supplier of power… so we need to consider this,” he said.

Hill, who was addressing Tuesday’s sitting of the joint select committee currently reviewing the Electricity Act, was commenting on the recommendation put forward by the SEZ Authority for self-generators within SEZ to be able to sell electricity directly to tenants within the SEZs without having to enter internet billing arrangements with JPS.

“This is the time where we are looking at the Act and this is the time to consider this [broader distribution] and I believe we would do the country well if we were to do that and arrive at a solution that serves us better into the future, given the experiences we’ve just had and the ones that we’ve had in the recent past,” he said.

The JPS, in recent times, has come under heavy criticism over its performance, particularly regarding the slow pace at which it has been restoring electricity to customers after the passage of Hurricane Beryl on July 3.

In the meantime, Hill told the committee that SEZ developers clearly want to be able to produce their own electricity, given the high associated costs.

“What the SEZ is suggesting… is that people who are spending significant amounts of money to build out their space do want the right to produce their electricity. They have to buy a tremendous amount of transmission and all kinds of stuff from… JPS. They want to look at developing their own,” he said.

In its submission, the SEZ Authority said that in order to ascertain the appetite for the provision of electricity within SEZs, a survey of SEZ stakeholders was undertaken. The survey had 27 respondents comprising nine multi-purpose developers, 16 single entities and two specialised zones.

“Of the 27 [stakeholders], 20 expressed having interest in electricity generation in their zone, either for self-use or for providing electricity to their occupants and zone users, citing cost cutting and sustainability as the top two reasons,” the authority said.

In considering the authority’s proposal, the energy ministry said that the services for which authorisation is proposed for developers within the SEZ is currently the responsibility solely of JPS, pursuant to the terms of its licence. It said that the SEZ Act, also in keeping with the Electricity Act and in recognition of the terms of the JPS’s licence, prohibits the supply of electricity by a developer or occupant to any other person other than the single buyer for net billing purposes.

The ministry said that in order for developers to be permitted to supply and sell electricity to customers or tenants within the SEZ independent of the grid, the SEZ Act, Electricity Act and the JPS licence will need to be amended to allow for this change.

Hill said that his ministry will be looking at the SEZ Act, guided by the policy decisions to be taken by the energy ministry and possibly Cabinet.

Energy Minister Daryl Vaz said that in terms of amendment to the JPS’s licence, consultation will be done with the Attorney General’s Chambers and other entities, including the Office of Utilities Regulation.

“This is something that we have been talking about for years and obviously, time is of the essence. So we really want to get this particular situation, a conclusion to it, one way or another,” he said.

Opposition committee member Anthony Hylton, who has been pushing for a solution to allow SEZs to have cheaper electricity costs, welcomed the SEZ Authority’s proposal, noting that it has broadened the original scope of the committee.

“It will really introduce a whole different module in the sector, perhaps… I believe the debate should begin, but I’m very clear that it widens the lenses very much — much beyond anything that was initially contemplated,” he said.