OPPOSITION spokesperson on energy and mining, Phillip Paulwell, is suggesting that the concept of the “single buyer” under the Electricity Act, 2015, which refers specifically to the Jamaica Public Service Company Limited (JPS), be broadened to include other players and therefore encourage competition in the industry.

JPS is currently the sole distributor of electricity in Jamaica, and therefore the only electricity utility recognised in the Act.

“One of the things that we have been grappling with is this concept of single buyer, more so because many of us are thinking long term, when there is no licence that restricts us as the current one does now and there is greater scope for competition,” he said as he addressed Wednesday’s meeting of the joint select committee, which is reviewing the Electricity Act.

He suggested that in that environment of increased competition, there might be micro-grids being established and there could be people who operate in the exclusive economic zone for example, doing their own transmission and so on.

“We thought that it would be useful now to expand on that definition of single buyer to take into account a different scenario, because we’re making legislation not just for the next three years; I’m hoping that after this exercise, we would not have to review this law for some time,” he said.

Further, Paulwell said while he is aware that this is something portfolio Minister Daryl Vaz “is actively contemplating”, he queried whether the Office of Utilities Regulations (OUR) had also given the matter any consideration.

General counsel, OUR, Chenée Riley confirmed that it is something the entity is considering “particularly now that we are looking at the end of JPS’s licence in 2027”.

Campbell noted, however, that OUR is very cautious as it recognises it is a policy decision to be made that will require significant examination and consultation in the industry, and what it will look like post-2027 or beyond.

“It has been our constant song, for example, that in the current review, while we do recognise that the construct in the industry now is the single buyer, we also ensure that the provisions are developed in a manner that it contemplates other possibilities where you could potentially have multiple licensed persons to supply, or you may have someone other than a single buyer who is in charge of transmission or distribution, et cetera,” she said.

“Our position is while this legislation as a necessity has to recognise the single buyer because that is the position at least up to 2027, there should be sufficient flexibility in the provisions that can contemplate other licensees for the other components of supply, transmission, and distribution,” she added.