With the stability of the electricity grid under threat and Jamaica’s economic competitiveness at stake, the Jamaica Public Service Company (JPS) will be investing just over $13 billion to tackle electricity theft.

This was stated by Minister of Energy Daryl Vaz on Tuesday during his contribution to the 2025/26 Sectoral Debate in the House of Representatives.

Vaz noted that Cabinet approved the National Electricity Loss Reduction Plan (2024-2034), in recognition of the twin threat facing the country.

“To combat this, JPS will invest $13.2 billion (US$84 million) over a 10-year period to improve its technical and commercial operations. Government oversight will include stricter regulations, penalties, public outreach and training, with the goal of reducing losses and renewing the system,” said Vaz.

He also told the House that the Government was committed to crafting a better electricity licence with the light and power company that will benefit all stakeholders, when the current JPS licence expires in 2027.

“We have laid the groundwork for greater resilience, lower costs and enhanced energy independence,” he said. But he stressed that the changes to the licence “cannot be considered in isolation”.

“JPS has done what it can to manage the system within the constraints of a regulatory framework, which is not suitable for a modern energy and electricity system. I thank their shareholders, both for this and for continuing to invest in Jamaica. However, the framework within which this licence operates needs to adapt; it doesn’t provide the right incentives and it’s failing the Jamaican people,” Vaz said.

“The world has changed; technology has changed and our expectations for energy provision have changed. We cannot continue with an electricity system which has such high costs, and we cannot continue with a system on which 30 per cent of the power is stolen,” he said.

“This is why the work of the joint select committee, which I chair, and which is tasked with reviewing the Act, is so critical,” he continued.

“We have consulted widely, encouraging participation from the public and industry alike, reviewing every aspect of the Act, from strengthening our response to natural disasters to options for reducing theft and losses, to considering competition where appropriate and regulation where it is not,” he said.

Vaz sought to assure that implementation of changes to the Act will be carried out in conjunction with changes to the licence regime, to ensure a holistic view is taken across the sector.

“It will not be easy, and the benefits will not come immediately. It will take time. Everyone must do their bit,” he said.

Speaking specifically to the licence, Vaz blamed the slow response of the JPS following Hurricane Beryl in July 2024 on its provisions.

Noting that every Jamaican was affected, Vaz, who at times appeared to clash with the JPS in the days and weeks following the hurricane due to JPS’ shifting deadlines, said “the delays in restoring power and the missed deadlines were unacceptable”.

“More broadly, under this licence, electricity prices remain among the highest in the region. This is intolerable; both for family budgets and our critical private sector, limiting the creation of jobs and economic prosperity.”

He said that for the first time since the 2015 licence was crafted, “we have the opportunity to deliver real change”.

“Whether it be through a newly negotiated licence with JPS or entirely new arrangements, we will not rest until we have an electricity sector our population deserves,” Vaz promised.