Jamaica lost four decades of economic growth because we are trapped in low and falling productivity. That means that we have to work harder to produce the same products. No one can make money doing that.

Lots of things make us unproductive, but one of the most damaging is the cost of energy.

Companies in the US pay one-third of what businesses in Jamaica pay for energy. Per capita income in the US is more than US$90,000, here it is under $8,000, but Jamaican households pay three times more than households in the US for less-reliable energy.

Our failure to grow will continue until we bring energy prices down. We have known this for many years and some attempts have been made to fix it. Private partners took a chaotic and failing utility and transformed it into a stable provider of energy.

Besides introducing international standards, Jamaica Public Service Company (JPS) has welcomed competition in generating energy such that 75 per cent now comes from independent producers. However, there are still communities that take electricity without paying, despite serious risk to lives and its precarious quality.

Another major unsolved problem is that more than 90 per cent of our energy is imported and soaks up the lion’s share of foreign exchange. Also, the price of oil and gas are very volatile. We’ve added some cheaper; local wind and solar energy, but not enough to bring prices down.

Jamaica’s cost of energy is amongst the highest in Caricom and the third-highest in the hemisphere.

Part of the slow transition to cheaper local energy sources is because our sole electricity utility, JPS, has little incentive to invest in replacing older, oil and gas equipment, as it makes about the same profit from using oil and gas as it does from using local renewable energy. For example, if the price of oil skyrockets because of war, JPS can simply pass the higher bill on to consumers and preserve its revenue.

Our agreement with JPS expires in July 2027, so there is a unique opportunity to chart a new course for this vital aspect of our lives. The timeline is much shorter, however, to get a better deal unless it can be extended, as Jamaica has the right to reacquire the utility from the majority owners, but we would have to inform them of that intention at least two years in advance. That means such a decision will need to be taken this summer in the midst of a contentious political struggle to win the general election due by September.

This decision should be elevated above petty party politics. There should be an urgent, bipartisan, public debate to decide Jamaica’s energy future that ensures our successful transition to renewable energy. Issues include the governance of the dialogue for energy reform; is there sufficient access for renewable energy under the current licence, for example in community energy; electricity wheeling, which is still not in effect; expansion of net billing; energy storage, particularly the role of battery systems; and generation procurement that still meets the need for JPS to earn the correct return on its capital. In short, incentives matter.

The leaders of both political parties need to make this debate their highest priority, bringing in whatever experts they need to prepare publicly transparent concrete proposals. Hopefully, both sides will agree on one way forward for Jamaica.