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Time to shake up the one-player model
Letters
October 25, 2024

Time to shake up the one-player model

Dear Editor,

The Electricity Act of 2015, the rule book of Jamaica’s energy game, is up for a makeover.

Its current one-player model — dominated by the Jamaica Public Service Company (JPS) — is leaving many wishing for a fresh start, particularly after the chaos Hurricane Beryl stirred up in 2024. The storm exposed how fragile Jamaica’s centralised energy system really is, as power outages spread like wildfire, leaving the island in the dark far too long.

Enter Phillip Paulwell, the shadow minister for energy, calling for a power-play shift. He argues that Jamaica’s electricity sector needs competition, whereby multiple players generate and distribute energy, lowering prices and boosting efficiency.

Currently, high electricity costs plague consumers, partially due to the monopoly of New Fortress Energy in the Liquefied Natural Gas (LNG) space. Paulwell suggests a fairer cost-sharing model could lighten the financial load.

Beyond just reacting to hurricanes, Paulwell envisions a future in which independent power producers (IPPs) can directly supply energy, sparking innovation and resilience. Special economic zones (SEZs) could even become self-sustaining energy hubs, fostering economic growth.

The People’s National Party always wanted a competitive energy landscape, not this monopoly-driven reality. The dream was lower prices — US$0.15 per kilowatt-hour — but now they’re soaring at US$0.40, a clear sign the system needs a shake-up.

What’s the fix? Think of it like “Digicelising” the energy sector, mirroring the telecom revolution. Inject competition, modernise the grid, and decentralise. This could transform Jamaica’s energy game, making it affordable, resilient, and ready for the future.

 

Horatio Deer

horatiodeer2357@gmail.com

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