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Paulwell outlines PNP’s plan to reduce electricity cost
PAULWELL... the PNP has plans for a transformed energy sector, designed to lower electricity costs for all Jamaicans when it is returned to power
News
January 20, 2025

Paulwell outlines PNP’s plan to reduce electricity cost

OPPOSITION spokesman on energy Phillip Paulwell has outlined a five-point strategy which he says will revolutionise the energy sector under a future People’s National Party (PNP) Government.

Addressing residents of Cornwall Court, Farm Heights, Green Pond, and neighbouring communities last Thursday during an energy town hall hosted by Senator Janice Allen, the PNP’s caretaker for St James Central, Paulwell declared that his party has plans for a transformed energy sector, designed to lower electricity costs for all Jamaicans when it is returned to power.

According to Paulwell, the strategy will include legislative reforms for liquefied natural gas (LNG) competition. “Introducing competition in the LNG market will drive down price due to the competitive market place that exist globally,” argued Paulwell.

Jamaican consumers reportedly saved between $38 billion (US$244 million) and $74 billion (US$473 million) in electricity costs from 2017 to 2023, with the switch from using heavy fuel oil (HFO) and automotive diesel oil (ADO) to LNG to generate electricity.

The data shared with Jamaica Observer by Jamaica Public Service Company (JPS) showed that with the switch to LNG consumers’ electricity bills were 3.7 per cent to 7.2 per cent lower than they would have been based on the prices for HFO and ADO compared to LNG over the period.

But the island’s sole supplier of LNG to New Fortress Energy and Paulwell wants the market opened up. Since NFE began operating in Jamaica the country has reduced its exposure to volatility in crude oil prices while adding value to several industries across 25 customers.

Among NFE customers are JPS, The University of the West Indies, Jamaica Urban Transit Company, and bauxite and alumina producer Jamalco.

Meanwhile, Paulwell said the other four areas of the PNP’s strategy include JPS licence renegotiation to ensure more consumer-friendly terms when the company’s licence expires in 2027; oil and gas exploration leveraging local resources to reduce reliance on costly imports; micro solar grids for underserved communities; and a massive solar power expansion.

He said the solar power expansion can be achieved by adding 200 MW (megawatts) of solar energy to the national grid and incentivising households to adopt rooftop solar systems, enabling surplus energy contributions to the grid.

“In terms of the underserved communities, there are 200,000 homes where people currently steal electricity and the microgrids would make it cheaper for consumers who now see 17 per cent added to their bills monthly because of electricity theft,” Paulwell later told the Observer.

The Opposition spokesman, a former energy minister, said these measures are rooted in the principle of “Power to the People”, with the ultimate goal of ensuring every Jamaican has access to affordable, reliable, and sustainable energy.

In her remarks Allen declared her commitment to putting the community first, and told her audience that this was the first in a series of town hall meetings aimed at presenting the PNP’s solutions to critical issues such as security, education, housing, and health.

“This is what leadership should look like — listening to the people, engaging them directly, and delivering real solutions that improve lives,” Allen stated.

PNP’s five-point strategy to improve the energy sector are:

1. Legislative reforms for LNG competition — Introducing competition in the liquefied natural gas (LNG) market to drive down costs.

2. JPS licence renegotiation — Pursuing consumer-friendly terms when the Jamaica Public Service (JPS) licence expires in 2027.

3. Oil and gas exploration — Leveraging local resources to reduce reliance on costly imports.

4. Micro solar grids for underserved communities — Expanding renewable energy access through innovative microgrid solutions supported by the Hedge Fund, tackling electricity theft in the process.

5. Massive solar power expansion — Adding 200 MW of solar energy to the national grid and incentivising households to adopt rooftop solar systems, enabling surplus energy contributions to the grid.

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