The Jamaica Public Service Company, has dealt another blow to preferred bidders Energy World International, EWI.

This, by terminating the Power Purchase Agreement, it had signed with the firm.

The move follows the announcement by Energy Minister, Phillip Paulwell, yesterday that the licence granted to EWI to construct the 381 megawatt power plant, will be officially revoked on July 21.

EWI and JPS signed the power purchase agreement on January 25. It was expected to pave the way for the start-up of the electricity base generation project.

JPS CEO, Kelly Tomblin says word on Tuesday from the Energy Minister that EWI’s license will be terminated effective July 21 has direct implications for the power purchase agreement between the light and power company and the Hong Kong-based firm.

The Office of Utilities Regulation, OUR, approved the PPA which outlined terms and conditions for the sale of power to the national grid.

The 20-year power purchase agreement became effective on the issuance of EWI’s license on April 14.

But, speaking with our news center this afternoon, Miss Tomblin said on June 16, JPS advised EWI that it was in breach of several terms of the agreement.

Miss Tomblin says JPS is currently working on a new proposal to submit to the Government in order to reduce the cost of electricity in the shortest possible time.