Opposition Spokesman on Energy Phillip Paulwell says while his government counterpart, Daryl Vaz, has reportedly suggested that the high price of electricity was attributed chiefly to the terms of the Jamaica Public Service (JPS) licence, there was no legal barrier at this time preventing the Government from initiating early negotiations to grant a new licence to supply power to the country.
The licence granted to JPS expires in July 2027.
He said the decision by the Government not to embark on early negotiations to grant a new licence was a matter of political choice and not legal constraints.
“It has sent the entire industry, JPS and others, into a state of uncertainty that this country cannot afford,” Paulwell declared during his contribution to the Sectoral Debate on Tuesday.
He noted that the JPS licence came into being in 2001, and, over its life, it had been amended by both Jamaica Labour Party and People’s National Party administrations, whenever it was necessary for changes to be made in the national interest.
The opposition spokesman argues that the establishment of a negotiating committee and contracting foreign advisers, in the current climate of uncertainty, represents a waste of public resources and a further delay that Jamaican consumers cannot afford.
Paulwell recommended several elements he said must form the basis of any new JPS licence.
RIGHT OF FIRST REFUSAL MUST BE REMOVED
He said the right of first refusal enjoyed by the JPS for the replacement of its existing generation capacity must be removed. According to Paulwell, any new generation must be procured through the Government-owned GPE entity by way of an internationally competitive tender, with awards based on the least cost of available renewable technology supported by the most efficient storage solutions.
He is urging the Government to implement wheeling immediately, noting that this facility allows a large commercial or industrial enterprise to generate power at one location and transport it across the national grid to its other facilities, subject to a reasonable transmission fee.
Another proposal suggested by Paulwell is to allow owners and tenants of special economic zone facilities to generate their own electricity and distribute it within the zone. He said this would reduce operational costs, improve competitiveness, and attract investment.
He said homeowners and businesses must be enabled to sell surplus electricity generated from rooftop solar installations to the national grid.
The distribution of electricity must be liberalised to accommodate microgrids, said Paulwell, noting that microgrid licences should be awarded on a competitive basis, with a specific mandate to provide service to unserved and underserved communities.
With current paying customers being saddled with non-technical losses because of theft averaging around 20 per cent of net generation, Paulwell said there must be a clear and enforceable mandate for the reduction and elimination of illegal connections and unmetered electricity usage.
He urged the Government to play a greater role in eliminating this practice, adding that penalties for theft of electricity in wealthy communities must be increased.
Further, he said the Government must fully subsidise the proper wiring of homes in underserved communities and mandate the wider deployment of prepaid meters.
Turning to the state-owned oil refinery, Paulwell said Petrojam was being given a basket to carry water.
He warned the energy minister not to tamper with the price mechanism at Petrojam, pointing out that the entity had soaked up significant losses amounting to billions over the last two fiscal years.
At a time when petrol prices are soaring owing to the conflict in the Middle East, Paulwell said the Government should adjust its tax intake to provide a relief to motorists.
edmond.campbell@gleanerjm.com