Evidence-Based Energy Strategy (P.11/2025): second amendment

STATES OF JERSEY

EVIDENCE-BASED ENERGY STRATEGY (P.11/2025): SECOND AMENDMENT

Lodged au Greffe on 11th March 2025 by the Minister for the Environment Earliest date for debate: 22nd April 2025

STATES GREFFE

2025  P.11 Amd.(2)

EVIDENCE-BASED ENERGY STRATEGY (P.11/2025): SECOND AMENDMENT

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1 PAGE 2, PARAGRAPH (a) –

1. For the word "October" substitute "December";
2. For the word "implement" substitute "start implementing"; and
3. For the words "market competitiveness" substitute "a market that delivers competitive outcomes".

 MINISTER FOR THE ENVIRONMENT

Note:  After this amendment, the proposition would read as follows –

THE STATES are asked to decide whether they are of opinion

1. to request the Council of Ministers to develop, and before 31st December 2026, start implementing an evidence-based energy strategy, that sets out Jersey's long-term energy requirements, and balances the need for affordability, safety, security, a market that delivers competitive outcomes and carbon- neutrality of the energy sector in Jersey; and
2. to request the Council of Ministers to bring forward any necessary legislative changes subsequent to the implementation of the energy strategy, for approval by the Assembly before 31st December 2027.

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P.11/2025 Amd.(2)

REPORT

As Minister for the Environment with responsibility for energy policy matters, I am proposing amendments to clarify this proposition.

Implementation date

Recognising the election in June 2026, I have proposed a small adjustment to the date to allow time for the new Council of Ministers (CoM) to take office and consider the energy strategy by December 2026. This would allow the new CoM 6 months to take office and agree a position on an energy strategy. During this time, Ministers will have to agree a Common Strategic Policy and Budget as well as getting up to speed on their own portfolios. A 6-month timeframe for considering and agreeing an energy strategy therefore seems more realistic.

The energy strategy will be forward looking and set out a strategic position on energy as well as actions to be taken over 2026/2027 and beyond. While the strategy will take effect from 2026, full implementation will be over a number of years. I have therefore amended the proposition to make it clear that implementation will start in 2026.

Market competitiveness

The proposition defines "market competitiveness" as an aspect of the energy strategy. Market competitiveness is an economic term with a specific meaning - it means a market with many buyers and sellers, a market that sellers can quickly, easily and cheaply enter (and exit) and a market where sellers and buyers have full information. In such a market, prices are competitive and the no buyer or seller can influence them and products and services (e.g. tariffs, customer service levels) meet customer need. [1]

In the context of Jersey, a small island, it is neither possible nor desirable to have true market competitiveness in all markets. This is particularly true of energy markets which require suppliers to invest large sums in developing and maintaining networks to supply energy to consumers. It would be hugely inefficient to have more than one gas or electricity network in an island nine miles by five. In the context of Jersey's energy market, market competitiveness is defined to mean a market that delivers competitive outcomes in terms of reliable and safe supply, prices and tariffs that deliver best value to consumers (affordability) and in terms of customer service. I have therefore proposed an amendment to the proposition to clarify this point.

Financial and staffing implications

There are no financial and/or staffing implications arising from this amendment.

Children's Rights Impact Assessment

A Children's Rights Impact Assessment (CRIA) has been prepared in relation to this proposition and is available to read on the States Assembly website.

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[1] Input provided by Government economics team

P.11/2025 Amd.(2)