KINGSTON, Jamaica— Private sector groups, the Jamaica Chamber of Commerce (JCC), the Jamaica Manufacturers and Exporters Association (JMEA), and the Private Sector Organisation of Jamaica (PSOJ) are welcoming the Government’s announcement of its intent not to renew the current all-island licence with the Jamaica Public Service (JPS) under the existing terms, set to expire on July 8, 2027.

Energy Minister Daryl Vaz made the announcement during a press conference on Tuesday.

“We welcome the minister’s clear recognition that Jamaica’s electricity sector is in urgent need of reform. High energy costs have long presented a significant barrier to growth for businesses and an undue burden on households. The Government’s objective to renegotiate licensing terms in pursuit of more competitive pricing and improved national energy security is aligned with long-standing calls from the business community for structural transformation in this space,” the three organisations said in a joint statement on Tuesday.

According to the groups, Jamaica loses approximately 28 per cent of the electricity it generates, which they noted is one of the highest system loss rates in the region, far exceeding the Latin American and Caribbean average of 15 per cent. These include both technical losses and non-technical losses, such as electricity theft.

They noted that these losses significantly drive up electricity costs for paying consumers, deter much-needed investment, and undermine confidence in the energy system. They said Jamaica’s electricity rates remain among the highest in the Caribbean, averaging US$0.28–0.30/kWh, compared to countries like the Dominican Republic and Trinidad & Tobago, which have rates closer to US$0.12–0.15/kWh.

The private sector groups said reform is not optional but essential.

To guide this reform, the JCC, JMEA, and PSOJ emphasise that any new licence or regulatory framework must be anchored in three core pillars:

* Fuel Mix & Diversification:

Accelerate the integration of renewables and cleaner fuels into the national grid. This includes re-evaluating legacy power purchase agreements (PPAs) that lock consumers into uncompetitive pricing and taking advantage of the falling global costs of solar, wind, and battery storage
* Implementation & Execution:

Policy ambitions must translate into real-world improvements. This includes:
• Updated time-of-use tariffs
• Expanded wheeling arrangements
• Streamlined approvals for renewable projects
• Modernised grid access rules, especially for commercial-scale producers

*Finance & Affordability:
Access to affordable financing is vital for businesses to invest in cleaner energy. We urge the creation of concessional loan facilities in the 4–6 per cent interest range, backed by guarantees to de-risk lending for financial institutions.

“Additionally, we call for:
modernisation and digitisation of the grid to reduce technical losses and improve reliability;
aggressive action against electricity theft, including surveillance, metering upgrades, enforcement, and public education; greater data transparency, particularly from the OUR and industry players, to support evidence-based policymaking and investment decisions,alignment with national energy goals, including achieving 50 per cent renewable energy by 2030 and reducing average electricity costs toward US$0.12/kWh,” the statement said.

“We are particularly encouraged by the minister’s assurance that this process will be consultative, and we respectfully request formal engagement of private sector stakeholders throughout the design and implementation of the new energy framework. The private sector is not only a major energy user—it is also a potential partner and investor in this critical space. This is a once-in-a-generation opportunity to correct longstanding inefficiencies, promote innovation, and deliver a more equitable, cost-effective energy future. Together, we must seize this moment with clarity, courage, and collaboration,” the private sector groups urged.