A rare window for change
Dear Editor,
The Small Business Association of Jamaica (SBAJ) applauds the recent action by the Government. After decades under an agreement that locked us into high rates, inconsistent service, and limited autonomy, the expiration of the Jamaica Public Service’s (JPS) licence in July 2027 gives us a rare window for structural change.
Minister of Energy Daryl Vaz has said the current framework is “flawed”, and we at the SBAJ agree. Small businesses have long borne the brunt of inefficiencies, with energy costs consistently ranked as one of the top three threats to profitability.
Ask any manufacturer in Clarendon, any hairdresser in Portmore, or any dry goods store owner in downtown Kingston — electricity is not just a utility, it’s a lifeline. And right now, that lifeline is expensive, unpredictable, and unequally distributed.
We’ve seen electricity bills outpace revenue growth. Many businesses are forced to scale back production during peak hours. Others are investing in diesel generators, driving up operational costs and carbon emissions. A few are turning to solar, but find themselves trapped in red tape and unable to connect to the grid under favourable terms.
The Small Business Association of Jamaica is calling for:
1) A new licence structure that supports competition: Whether through independent power producers or regional microgrids, Jamaica must move beyond a single supplier system.
2) A clear timeline for energy reform: Business owners need certainty to make investment decisions. We urge the ministry to publish milestones for stakeholder consultation and implementation.
3) Support for renewable adoption: Allow small businesses to generate and sell their own power without prohibitive costs. Net billing, battery storage incentives, and rooftop solar grants must be part of the reform.
4) Protection from cost pass-throughs: Small firms cannot continue to absorb the financial consequences of electricity theft, system losses, and foreign exchange volatility.
The decision not to renew JPS’s licence “as is” opens the door. But change is not automatic. The same old structure, dressed in new language, would be a betrayal of public trust and an economic dead end. Small businesses account for over 80 per cent of jobs in Jamaica. If we want economic growth, food security, manufacturing resilience, and community stability, the new energy regime must put us at the centre of the conversation — not on the sidelines.
The SBAJ will remain at the table, engaging with the Office of Utilities Regulation (OUR), Ministry of Energy, and civil society partners to ensure that the voice of the small business sector is heard. We welcome a new vision for Jamaica’s energy future, but that vision must be backed by policy, pricing reform, and infrastructure that works for the many, not just the few.
Let this be the moment when Jamaica doesn’t just change contracts, but changes course.
Garnett Reid
President
Small Business Association of Jamaica