Jersey Electricity plc.: referral of stand-by charges to the Channel Islands Competition and Regulatory Authorities (P.88/2017) – amendment

STATES OF JERSEY

JERSEY ELECTRICITY PLC.: REFERRAL OF STAND-BY CHARGES TO THE CHANNEL ISLANDS COMPETITION AND REGULATORY AUTHORITIES (P.88/2017) – AMENDMENT

Lodged au Greffe on 16th January 2018 by the Deputy of Grouville

STATES GREFFE

2017  P.88 Amd.

JERSEY ELECTRICITY PLC.: REFERRAL OF STAND-BY CHARGES TO THE CHANNEL ISLANDS COMPETITION AND REGULATORY AUTHORITIES (P.88/2017) – AMENDMENT

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1  PAGE 2, PARAGRAPH (a) –

After the word "("CICRA")" insert the words "or other qualified body". 2  PAGE 2, PARAGRAPH (b) –

After the word "CICRA" insert the words "or other qualified body".

3  PAGE 2, PARAGRAPH (e) –

After the words "Action Plan" delete the words "by 31st March 2018", and after the words "in Jersey" insert the words ", as stated under Key Objective 3 in the Economic Development Department Business Plan of 2014.".

DEPUTY OF GROUVILLE

Note:  After these amendments, the proposition would read as follows –

1. to request the Minister for Treasury and Resources, as shareholder representative, to request Jersey Electricity plc. not to impose stand-by charges on commercial customers who generate their own power from 1st November 2017, until the opportunity has been provided to the Channel Islands Competition and Regulatory Authorities ("CICRA") or  other  qualified  body to  undertake  further  research  into  the implications of this charge and to report on any findings to the States;
2. to request the Minister for Treasury and Resources to request CICRA or other qualified body to undertake research into the implications of such charges for the competitiveness of the market for the generation and supply of electricity in Jersey;
3. to request the Council of Ministers to bring forward the legislation required to permit CICRA to become the economic regulator of Jersey Electricity plc.;
4. to request the Council of Ministers to bring forward proposals to update the Electricity (Jersey) Law 1937 and thereby open up debate  on locally-generated renewable electricity targets; and
5. to request the Minister for Economic Development, Tourism, Sport and Culture to bring forward an Action Plan by 31st March 2018 setting out how  he  intends  to  exploit  and  facilitate  the  development  of  the renewable energy sector in Jersey, as stated under Key Objective 3 in the Economic Development Department Business Plan of 2014.

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P.88/2017 Amd.

REPORT

On 10th October 2017, the Minister for Treasury and Resources delayed the debate of my proposition: Jersey Electricity plc.: referral of stand-by charges to the Channel Islands Competition and Regulatory Authorities' (P.88/2017) regarding the JEC stand- by charge and my request to update the 1937 Jersey Electricity Law. He moved the debate to 30th January 2018, to give him more time.

This is a cross-departmental issue; it involves the Minister for Treasury and Resources, who is charged to take responsibility for our shareholding interests; the Assistant Chief Minister, who has responsibility to ensure that fair competition is achieved in the market-place; the Minister for Economic Development, Tourism, Sport and Culture, who has responsibility to exploit the potential of the locally generated renewable energy sector; and the Minister for the Environment, who has responsibility for the Energy Pathway strategy.

I gather that a few days after my deferred debate, these 4 Ministers met to discuss the locally generated renewable energy sector for the first time, and it was decided that the Minister for the Environment would take the lead on it.

Since October, I have had 2 constructive meetings in the Environment Department and with the Minister. I agreed to bring forward these minor amendments to broaden the scope of those qualified to do the work I am seeking. It is my understanding that the Department  has  commenced  work  to  progress  some  of  the  aims  in  my  original proposition regarding renewable energy; and specifically in scoping the review to establish what implications the stand-by charge proposed by Jersey Electricity plc. may have on the renewable sector.

Amendment (e) refers to the responsibility of Economic Development, Tourism, Sport and Culture, which I would like to believe is encouraging renewable industries per their own Business Plan, but may wish to consider the results of the review before bringing forward their Action Plan.

Notwithstanding some of the requests in my original proposition have commenced, I believe it is still important to have this debate, to have renewable energy considered and put on departments' agendas.

Energy  underpins  our  economy  and  community –  from  our  cost  of  living,  our environment, industries, and diversification, to our way of life. It is therefore high time that the Government put it on the agenda and made their position clear.

Financial and manpower implications

There  are  no  additional  financial  or  manpower  implications  arising  from  this amendment, to those set out in my proposition –

"In relation to paragraphs (c), (d) and (e) of the proposition there will be cost implications for the States in terms of policy officer and law drafting time; however, departments could seek to find funding from within existing resources if the proposition is adopted by the States."

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