Business
Jamaica looking to liberalize energy sector to encourage competition
Dr Bird Power Station, Jamaica., owned by Jamaica Energy Partners – an independent power provider. PHOTO/File
(CMC) – The Jamaica government says it will begin talks with various stakeholders this week aimed at liberalizing the energy sector.
Science, Technology, Energy and Mining Minister Phillip Paulwell the time has come to transform the energy sector and to introduce a fully competitive arrangement that “will see competition from the generation side right down to the retailing of electricity.
“So, we intend to facilitate an inter-connectivity arrangement with the owners of the grid so that anyone will be able to generate and supply consumers directly.”
Paulwell said that it is only through a competitive environment that businesses will be forced “to look keenly at technologies that are far more efficient than those currently being used, and to look at fuel sources that will provide the least cost to the consumer and improve the quality of service delivered”.
“I think we have to introduce competition now to enable consumers to assert the power in the marketplace and to ensure there is free and fair competition. We are committed to that and it is going to happen,” he added.
Paulwell said it is important that the transformation occurs quickly to prevent a mass movement away from the Jamaica Public Service Company (JPSCo), as consumers become more frustrated.
He said consumers could now secure loans for equipment to generate their own electricity for between US$0.18 to US $0.20 per kilowatt hour (KWh) compared to US$0.40 per KWh being generated by JPS.
“My message to JPSCo is, we need to send that signal to the consumers immediately to introduce competition, to open up the market, to provide hope so that our people can anticipate this change, and not be moving to our own systems overnight.
Paulwell said the government would “definitely be moving away from heavy fuel oils and diesel and pursuing the natural gas project.
“Coal is in abundance in the region and Petcoke, which is even cheaper than coal, will also be part of the mix,” he added.