Legislators want deals between JPS, IPPs made public
Published:Friday | April 21, 2023 | 1:11 AMJudana Murphy/Gleaner Writer
Members of the Joint Select Committee of Parliament reviewing the Electricity Act, 2015, have agreed that accords between the Jamaica Public Service Company (JPS) and independent power producers (IPPs) should be made public.
Opposition Spokesperson on Energy Phillip Paulwell shared that the agreements are mainly in relation to power purchase.
A power-purchase agreement is a contract that governs the commercial relationship between an independent power producer and the single buyer – the JPS – which is approved by the Office of Utilities Regulation (OUR). The contract requires the single buyer to purchase electricity from the IPP and that the IPP sells electricity to the single buyer.
“One of the reasons why we wanted to review this law was of my own concern about the secrecy of these agreements. The minister has to write to the OUR to be able to see an agreement that affects the lives of our people and I, too, would have been so hamstrung when I was minister. I believe in this day and age, these agreements should be public,” Paulwell argued.
He said that while there may be concerns about proprietary information, the fundamental commercial terms – which generally last for 20 years – should be accessible.
“What the OUR is saying is that where there are breaches that are unremedied, then you, as minister, should revoke or suspend. You have a right to know what these are. You shouldn’t have to write to the OUR to get a copy of the agreement between JPS and New Fortress when you have to issue the licence for that body to operate,” Paulwell lamented.
He found support in Leader of Opposition Business Anthony Hylton, who underscored that while agreements have to be handled with a degree of sensitivity, it certainly cannot be that they are off limits to the minister with responsibility for energy when they are already in the hands of OUR executives.
“The same protection that binds the OUR would apply to the minister and how he handles those agreements. I go further to say that I believe it must be fundamentally understood by JPS – and whomever else – that if it doesn’t obtain anywhere else in the world, that the Parliament of the land must have access to those,” Hylton said.
He added that the situation is grave, especially in terms of the monopoly that is accorded to the sector.
“ ... We should not have allowed it in the first place,” Hylton said.
St Catherine Southern Member of Parliament Fitz Jackson endorsed the comments made by his parliamentary colleagues, noting that the minister is ultimately responsible to the people about what services are provided, and by extension, the terms of the service.
“No minister can act out of ignorance of what the provisions are. It is just unthinkable,” he remarked.
Energy Minister Daryl Vaz, who is also chair of the committee, concluded that it is a fundamental issue that needs to be resolved and that he does not foresee that the matter will require a lengthy debate.
Government senator Sherene Golding Campbell questioned whether the committee was doing a disservice to the nation by not simultaneously reviewing the OUR Act.
The committee acknowledged that it is critical for OUR representatives to be present as they continue to review the Electricity Act and Vaz has committed to inviting the regulator to the next meeting.