AS Jamaica stands at the threshold of reshaping its energy landscape the Government’s decision not to renew the Jamaica Public Service Company’s (JPS) all-island electricity licence in its current form has ignited a critical debate. Should we continue with a model that protects monopoly rights in electricity transmission and distribution, or is it time to open the market to competition and innovation?

This is not the first time Jamaica has faced such a crossroads. Twenty-five years ago Cable & Wireless Jamaica (C&WJ) operated as a State-sanctioned monopoly in the telecommunications sector. Back then, C&WJ argued that exclusivity allowed for stable pricing, consistent service, and the large capital investments needed to build out critical infrastructure like submarine cables and cellular towers. They warned that liberalisation would fragment the market, introduce volatility, and compromise service quality.

But when the telecommunications market was liberalised in 2000 and new entrants like Digicel arrived, something remarkable happened. Prices fell sharply. Service quality improved. Mobile penetration skyrocketed, network coverage expanded, and innovation flourished. Consumers benefited enormously, and Jamaica became a regional leader in mobile communications.

Fast-forward to today and we hear similar arguments from JPS in defence of its monopoly on electricity supply. They argue that predictable revenue streams are necessary for grid investments, and that competition could introduce inefficiencies in such a critical sector. Yet, the lessons from telecom liberalisation suggest otherwise.

Monopoly protection does not guarantee superior performance. Instead, regulated competition — carefully designed with safeguards for reliability and equity — can unleash investment, drive innovation, and improve consumer outcomes. Managed liberalisation could allow multiple suppliers to compete for customers, creating downward pressure on electricity rates and accelerating the adoption of renewables.

Of course, electricity is not telecoms; the technical and economic complexities are different. But this is not an argument for inaction — it is a call for thoughtful reform. Policymakers must consider a phased approach to opening the market, ensuring that grid reliability and affordability remain central priorities.

Jamaica has done this before. We can do it again.

Mark Dennis is a sustainable energy consultant and member of the Jamaica Manufacturers and Exporters Association’s Energy Committee.

Mark Dennis