Jersey Competition Regulatory Authority 2023 Annual Report and Accounts

2023 Annual 2023  Annual RReport eport & Accounts&  Accounts

R.80/2024

22" nd Floor Salisbury HouseFloor  Salisbury  House, , 1-9 Union S1-9  Union  Street, treet, S St t HelierHelier, , JerseyJersey  wwwwww.jcra.je.jcra.je

Contents

Message from the Chair  3 Introduction  5

Role of the Authority  5

Strategic Context   6

Memorandum of Understanding & Funding Agreements  9 Performance Report  10

CEO Report  11

2023 Resources   14

Sustainability Update  19

Performance: Competition   21

Performance: Port Operations  24

Performance: Postal Services  25

Performance: Telecommunications    26

Priorities for 2024  29

Accountability Report   30

Corporate Governance Report  31

Remuneration and Staff Report   35

Accountability Statement  37

Grant Assurance Statement from the Authority to the Minister  38 Financial Statements   39 STATEMENT OF COMPRHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2023  43 STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2023  44 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023  45

This document sets out the Annual Report and Accounts for the period 1 January to 31 December 2023. It is presented to the Minister pursuant to Articles 17 and 18 of the Competition Regulatory Authority (Jersey) Law 2001.

This document takes account of the Annual Reporting Best Practice Guide published by the Officer of the Controller and the Auditor General in 2023. Good-Practice-Guide-to-Annual-Reporting.pdf (jerseyauditoffice.je)

Further information on the work of the Authority is available on the website www.jcra.je.

Message from the Chair

It has been almost four years since the Jersey Competition Regulatory Authority (the Authority) has been independent of CICRA. Much has been accomplished in working to achieve our goals in the context of a very broad brief and against the backdrop of a changing economic and political climate. We trust the Authority is part of the answer to the cost of living challenges in Jersey and brings real sustainable value to our stakeholders.

We strive to maximise our contribution to Jersey s citizens, consumers and general economic health.

~ Stephanie Liston

The team at the Authority has grown very effectively under Tim Ringsdore s management. Sarah Price , our Company Secretary and Senior Case Officer has now taken on the role of Chief Operating Officer. We have been careful to consider succession and the need for appropriate training within the team.

We strive to maximise our contribution to Jersey s citizens, consumers and general economic health. The Authority oversees and enforces Jersey competition law, port operations, and the postal and telecommunications sectors. Each of the sectors we regulate are fundamental to the strength of Jersey s economy as well as its national and international connectivity. We consider this connectivity and need for infrastructure resilience as part of our regular watching brief.

Jersey is a very well and highly regulated ecosystem. The Authority aims to provide value to all of its stakeholders and contribute to this ecosystem. Competition is an essential driver of consumer benefits. In these inflationary times, it plays a pivotal role in keeping prices as low as possible. A competitive market is likely to drive lower prices, improved quality and service, innovation, consumer choice and efficient allocation of resources. We have been working with Government to update the competition law framework. In February 2024 we held a competition workshop to provide an expert and international perspective in relation to merger control, in particular.

We have completed a number of market studies in 2023. These have included market studies into School Uniforms and Groceries. We also launched a market study into electricity in October 2023 - which will be completed in the course of 2024.

Government has now established and published a Ports Policy which we will consider as we focus on development of the harbour, freight logistics and securing air routes to the UK and other regions. A new set of quality of service metrics are being developed and resilience is a central issue going forward. We have also commenced a project to review the Ports Regulatory Framework Review which we anticipate will be completed in 2024. Freight logistics will be critical in reducing inflation and increasing competition.

We look forward to the Government developing a Post Policy with a view to securing the long term future of the postal sector in Jersey. The sector has changed dramatically and features decreasing traffic in letters and increasing traffic in packages (packages are not currently covered by regulation). We will be looking at agreeing a new set of quality of service metrics for Jersey Post that adapts to the changing postal market and delivers on consumer expectations.

During 2023, in addition to our planned work, we have had to respond to an increasing number of mergers, as well as a number of incidents, network failures and licence breaches that were unexpected. The need to investigate and take enforcement action places significant additional pressures on our resources. We continued to have particular challenges in the telecommunications sector in 2023. With the safety of Islanders and visitors a clear priority, we have investigated failures in the delivery of emergency call services as well as a number of network outages. We look forward to resolving these issues in 2024.

The Authority is very pleased to have spearheaded the establishment of a 999 Liaison Committee for Jersey. The 999 Liaison Committee brings together all organisations that have a role in delivering and managing Jersey s public emergency call service. The aim of the Committee is to ensure Jersey benefits from a reliable and high-standard emergency call service. It will also consider opportunities for the future development of Jersey s emergency call service to ensure Islanders are receiving the best service available.

Jersey is also due to have new telecoms security laws and regulatory responsibility for ensuring all networks are resilient and secure. The enforcement of these new laws will be the responsibility of the Authority. Together with Ofcom, the Authority has released 5G spectrum. We are keen to encourage investment and innovation, while keeping an eye on the competitive landscape.

We have a clear focus on good governance in the interest of continuing to oversee the dynamic sectors and situations that we regularly address. The Authority s very experienced Board provides challenge and support to each other, the executive and the team, in appropriate measure. We keep a risk register which is reviewed and updated at each Board meeting. The Board was pleased to have a Board apprentice from the Government s Board apprentice scheme. We believe that Sarah Bisson enjoyed her time with the Authority as much as we enjoyed her thoughts and background. We wish her well in her future career.

We believe 2024 will see significant change in Jersey and globally with elections in the UK and the US, as well as many other countries. Staying informed of these political developments and their possible affects in Jersey and our portfolio of responsibilities will be important. The swiftly changing nature of innovation and development of new technologies internationally not least Artificial Intelligence will also be an important focus for us as we seek to understand how these developments will affect competition and the sectors we regulate.

We were very pleased to launch our 2024 Business Plan on 8 February. We focused on our core goals for 2024 Innovation, Resilience and Regulatory Certainty. In addition to the introduction of our team and our plans, we had an expert panel to discuss our goals. We were very pleased to introduce Lisa Perkins (Director of research and realisation at BT s Adastral Park); Dr Michael Short (who has 40 years electronics and telecommunications experience, including being Chief Scientist for the Department of International Trade and a founding member of GSMA); Rachel Harker (highly experienced applied technologist who has worked on a diverse portfolio of physical digital development programmes and works with Digital Jersey); and Natasha EgrØ (Chair of the Jersey Institute of Directors). The panel was very well received. They discussed innovation, how regulation can drive innovation, the value of regulatory certainty and local challenges and business views and concerns. The Authority will continue to work with international and local experts to inform our views throughout 2024. We were very grateful to those from all of our stakeholders who attended our launch event in challenging February weather.

Finally, we look forward to working with our new Government Ministers to understand their priorities for growth in the context of our responsibilities as an independent regulator. Our focus going forward will be on delivering value to Jersey consumers, citizens and businesses and the economy in all areas under our responsibility. We will also be encouraging resilience, innovation and investment, in part by providing regulatory certainty in Jersey.

Stephanie Liston

Introduction

Role of the Authority

The Authority is established by way of the Competition Regulatory Authority (Jersey) Law 2001 (the 2001 Law), with further functions and legal duties relating to competition law and economic regulation set out in legislation passed by the States of Jersey, to which the Authority is ultimately accountable. These functions and duties relate to the promotion of competition in the supply of goods and services in Jersey, together with the economic regulation of port operations, postal services and the telecommunications sector.

Legal Framework

Competition  This law establishes the Authority as a body corporate, and contains provisions as Regulatory Authority  to the appointment of Members, functions, fees and payments, grants and reporting (Jersey) Law 2001 requirements.

Competition (Jersey)  This law promotes competition in the supply of goods and services in Jersey.

Law 2005 Competition law is designed to deal with three main issues: anti-competitive

arrangements, abuse of a dominant position in a market, and mergers that are harmful to competition. The Authority aims to ensure that consumers and the economy benefit from competitive markets.

Air and Sea Ports  This law enables the Authority to license port operations in Jersey.

(Incorporation)  The Authority s primary duty under this law is to best protect and further the interests of (Jersey) Law 2015 users of port operations, where appropriate by promoting competition in the provision

of port operations. In addition, to ensure that provision is made to satisfy all reasonable demand, both current and prospective, for port operations, and that they are provided efficiently and effectively.

Postal Services  This law empowers the Authority to license companies providing postal services that (Jersey) Law 2004 concern Jersey. The Authority s primary duty is to ensure that postal services are

provided so as to satisfy all current and prospective demand. The Authority provides oversight of Jersey Post s behaviour and charges. As well as ensuring quality of service provision and universal service obligations (which ensure that all users receive a minimum level of service) are met.

Telecommunications  This law empowers the Authority to license the provision of telecommunication (Jersey) Law 2002 services in Jersey. The Authority s primary duty in this respect is to ensure that

telecommunications services, both within Jersey and between Jersey and the rest of the world, satisfy all current and prospective demand, wherever arising.

In the telecommunications sector, the Authority carries out its functions in a way that maintains well-regulated Jersey telecommunications markets, supports retail competition and the path to next generation connectivity (5G), and co-ordinates spectrum and number management with Ofcom (the UK regulator).

Independence

Unless otherwise provided to the contrary in legislation, the Authority is independent of the Minister of Sustainable Economic Development (the Minister) and of the States of Jersey, and regulates its own proceedings. Neither the Minister nor the States of Jersey is liable for any act or omission or debt or other obligation of the Authority. To support this, as an independent body, the Authority has a broad range of formal powers to ensure that competition law and its regulatory duties are upheld.

Strategic Context

Mission and Vision

The  Authority s  mission  is  to  help  markets  work  efficiently  in  the  interests  of  consumers, businesses and the wider Jersey economy by encouraging innovation, investment, value for money, choice and quality, making Jersey an attractive place to do business.

This is to achieve its vision of healthy and sustainable markets in goods and services in Jersey.

Strategic Goals

For 2023, the Authority had four strategic goals, which are inter-related and mutually reinforcing:

1. Protect and encourage competition
2. Deliver effective supervision of regulated sectors
3. Safeguard consumers
4. Maintain the Authority s reputation and resilience

As an independent regulator, the Authority has ambitious aims to help shape and sustain the Island s economic future, for the benefit of Jersey consumers, citizens and businesses.

Protect & encourage    Enforce  competition  law  effectively    with  a  key  focus  to  prevent  the competition application of anti-competitive arrangement and the abuse of a dominant

position  in  a  market  and  to  assess  mergers  to  prevent  any  substantial lessening of competition.

 Encourage competition where appropriate and proportionate use the

market studies regime to address issues with competition in those markets where change would most benefit Islanders.

Deliver effective supervision    Ensure the effective regulation of specified sectors

of regulated sectors

 Encourage continuity and security of supplies of goods and services by

enabling environmental and other best practice

Safeguard consumers   Using both competition and regulation powers, empower consumers to

exercise informed choice and help markets work in the best interest of Jersey as a whole

 Support and work effectively alongside other Jersey consumer bodies Maintain the Authority s    Build knowledge and capability to meet future requirements and challenges

reputation & resilience

 Complement and support the work of regulatory and enforcement authorities

in Jersey (and beyond) and act as a trusted advisor to Government

In pursuing its strategic goals the Authority also takes into consideration:

1. Its prioritisation principles
2. An assessment of the operational environment, considering three broad headings:

1. Government and Jersey economic drivers local factors likely to impact on the Jersey economy, Government planning and decision-making;
2. Global drivers broader factors arising from societal, geopolitical, natural trends and events; and
3. Technological drivers specific factors arising from technical and structural developments that may require consideration within competition and regulatory frameworks.

Values

The Authority has published its organisation values, which it follows when carrying out its legal functions and duties:

Prioritisation Principles

The Authority has strategic choices to make in deciding which areas to focus its limited resources and the appropriate approach to furthering its aims.

The Authority will make these strategic choices based upon its remit under the various laws that apply to it, as well as drawing on the intelligence and analysis gathered through its research and stakeholder engagement. In prioritising the use of its resources, the Authority will take an evidenced based view of the likely contribution to its strategic aims in the long and short term.

The list of factors to consider under different principles is illustrative and not exhaustive. The Authority will not apply the principles in a mechanical way. Judgement and reasoned balancing are required for each case, which necessitates consideration of the principles in the round and on a case-by-case basis.

In some cases, the Authority has a legal duty to act once certain relevant circumstances arise:

 On discovery or notification of a breach of a licence condition by a licensee;  Obtaining and reviewing information relating to merger situations;

 Conducting regulatory appeals and references in relation to price controls, terms of licences and other regulatory

arrangements under sector specific legislation; and

 There is a duty to act on receiving a Ministerial direction.

During prioritisation, the Authority will consider the timing and resource requirements of its work programme to ensure that its duties are appropriately met within the confines of the resources available.

Impact on consumers & the    What would be the likely direct effect on consumer or citizen welfare in the wider economy market or sector where the intervention takes place?

 What would be the likely indirect effect on consumer welfare?

 What would be the expected additional economic impact on efficiency,

productivity, innovation and the wider economy?

Strategic significance &    Does the work fit with the Authority s strategy and with its other objectives? synergy with the Authority s

 Is the Authority best placed to act? Alternatives could include private objectives

enforcement or action by other regulators.

 What would be the impact of the new work on the balance of the Authority s

current portfolio of work?

Risks, in respect of a    What is the likelihood of a successful outcome?

successful outcome &

 Consideration of the scale of detriment, need for consistency, potential detriment

risk management.

Resource requirements,    Consideration of proportionality

including proportionality &

 What are the resource implications of doing the work? the implications of doing

the work

Memorandum of Understanding & Funding Agreements

In the Memorandum of Understanding (the MoU) between the Authority and Government, it is agreed that independent decision making is critical in achieving good regulatory and competition outcomes. It also notes the important role for Government in setting the legislative and general policy framework within which the Authority operates.

The MoU is intended to clarify the respective roles of the Minister and the Authority, and also concerns the arrangements whereby Government and the Authority will work together to establish solid foundations for policy decision making.

Funding Agreement - Competition

A Funding Agreement between the Minister and the Authority is in place as an agreed framework, primarily intended to meet the requirements of the Public Finance Manual. The key purpose of the grant funding is to:

 Administer the Competition Law, seeking to promote competition in the supply of goods and services in Jersey;  Investigate possible breaches of the Competition Law;

 Carry out market studies to evaluate whether markets are working well for Jersey consumers;

 Promote and support competitive markets in Jersey through the provision of information and guidance; and

 Assist the Government to develop the Competition Framework.

Under the terms of this agreement, formal meetings between the Minister and Chair take place twice a year in Q2 and Q4. These meetings specifically discuss performance, internal controls and any other relevant information relating to the effectiveness oversight of public funds. In 2023, these took place in May and November.

The previous Agreement expired on 31 December 2023, and a new Agreement for 2024 to 2026 was signed in September 2023. The JCRA Competition Grant Funding Agreement can be found here: JCRA.

Funding Agreement Telecoms Security

With new legislation relating to telecoms security due to be enacted in 2024, discussions were taking place at the end of 2023 with a view to the development of a similar funding agreement for this work.

Performance Report

This section provides an overview of the work of the Authority in 2023:

1. CEO Report
2. 2023 Resources
3. Sustainability Update
4. Performance: Competition
5. Performance: Port Operations
6. Performance: Postal Services
7. Performance: Telecommunications
8. Priorities for 2024

The Chair and CEO confirm that this report of performance as a whole is fair, balanced and understandable, taking responsibility for the document and the judgements required.

............................................................. .............................................................

Stephanie Liston  Tim Ringsdore Chair CEO

23 April 2024 23 April 2024

CEO Report

Our  vision  remains  the  same  -  to  ensure  that  Jersey maintains  healthy  and  sustainable  markets  that  support effective competition and provides consumers with choice, value for money and suitable regulatory protection.

The Authority takes pride in upholding competition law as a cornerstone of its responsibilities.

~ Tim Ringsdore

The Authority takes pride in upholding competition law as a cornerstone of its responsibilities. Within this, the Authority

carries out a thorough analysis of each merger application, taking into account the potential impact on competition within

specific markets. The application from Sure to acquire the Airtel business created a large amount of work and commitment throughout the year, with a final decision expected in 2024. The Authority successfully met established timescales.

In addition to the approval process, the Authority actively engages in a rolling programme of market studies to assess how market sectors are performing, including areas of concern and recommended changes to benefit consumers. These studies evaluate whether any changes would be desirable, with the Authority providing recommendations to the Government or businesses based on its findings.

In 2023, the Authority completed two comprehensive studies in the areas of School Uniforms and Groceries . The outcomes of these studies led to a series of recommendations, all of which were well received. Looking ahead, the Authority remains committed to monitoring the progress in the implementation of these recommendations.

The Authority s approach to competition law, encompassing both approval processes, investigations and proactive market studies, reflects its dedication to fostering fair and competitive business practices.

The Jersey Regulatory Authority s Commitment to Economic Regulation in 2023:

The year 2023 marked a significant resource investment for two major reviews one for Ports Operations and another for Postal Services regulation projects of paramount importance that will determine the regulatory landscape for the next five years.

These extensive reviews signify a strategic initiative to gauge and align regulatory measures with the evolving needs of the Ports and Post sectors. With anticipated completion in 2024, the Authority emphasises continuous engagement with stakeholders, ensuring a consultative process that allows everyone to contribute their perspectives on proposed changes.

The telecoms sector continues to dominate the Authority s regulatory agenda, constituting more than half of our workload. In 2023 we reviewed and changed telecoms licences in conjunction with Ofcom to reflect national requirements for call line identification improvement which will ultimately help to protect consumers. A review of directory information services took place along with the effective use of mobile spectrum, which has resulted in

making some changes to operators spectrum allocation. We commenced a telecoms market review which will look into fixed and mobile services as well as future consumer protection requirements. We also commenced a regulatory financial reporting project which will look into the charges by JT for wholesale services and we published our annual telecommunications statistics report which provides a comprehensive look into the competitive environment.

The Authority completed a process to award some spectrum for 5G to JT and Sure during 2023. The annual audit of mobile antenna emissions affirmed compliance with guidelines, with ongoing audits slated to include 5G sites as they roll out.

The Authority was called on to deal with significant performance issues in the sector during the year. The Authority has undertaken investigations surrounding network and system failures, some affecting the ability to call emergency services. Our commitment to safeguarding consumers and businesses from service disruptions, especially emergency calls, remains resolute.

As a result of these challenges, we founded the 999 liaison committee which consists of members of the emergency services, telecoms operators, JCRA and other stakeholders. This is now being run by an independent chair in conjunction with the Justice and Home Affairs department. The committee will help identify the future requirements from telecommunications companies in support of the emergency services.

Recognising telecoms as critical infrastructure, the Authority has collaborated with the Jersey Government to introduce legislation and regulatory powers in line with international standards. This initiative aims to fortify the island s defences against potential security attacks, ensuring the protection of consumers, businesses, and the overall reputation of the island in an ever-evolving digital landscape.

Through strategic reviews, market interventions, and collaboration with international standards, the Authority ensures that Jersey not only keeps pace with technological advancements but emerges as a resilient, innovative and secure player in the global digital frontier.

Navigating Unforeseen Challenges: The Authority s Resilience in 2023:

Finding suitable internal resources posed an additional challenge, however we managed to fill our two remaining case officer positions by mid-2023. The delay in filling these roles prompted the Authority to collaborate with external partners in the early part of the year, ensuring the continuity and progress of significant projects.

Telecoms investigations added another layer of complexity to the challenges faced in 2023. Given the intricate nature of these issues, not all investigations could be concluded within the year, necessitating a resolution in 2024.

As the Authority continues to navigate challenges, our resilience and dedication remain resolute. Through strategic adaptation and a commitment to enforcement when necessary, the authority reaffirms its role as a guardian of regulatory standards, helping to ensure a fair and transparent business environment in Jersey and to provide as much regulatory certainty as possible.

After three years of careful recruitment we have a full staff compliment where we have developed an extremely talented and effective team who have the essential skills and capacity in place to fulfil our remit. Our work will continue to be challenging and varied and I am confident that our team have the ability and flexibility to adapt their skills to deliver our work programme effectively and efficiently. We will continually work together to ensure we deliver the best outcomes for consumers and be proportionate and pragmatic in everything we do.

Tim Ringsdore

2023 in Numbers

3 7 Strategic regulatory  Mergers and

reviews of ports,  Acquisitions post & telecoms dealt with

2 6

Market Studies Recommendations Completed made following the

Market Studies

1st 53%

Emergency Service  Increase in followers Liaison Committee  on LinkedIn established

10% 1st

Increase in engagement  Sustainability Report with social media posts of regulated sectors

undertaken

2023 Resources

Summary

All the activities undertaken by the Authority are separately funded, and by sector. Cross subsidisation is not permitted to ensure that all costs are ring-fenced by sector and common costs are shared among sectors. It is vital that the Authority has a sufficient working capital balance and during the year, the Authority adopted a Reserves Policy. This ensures that reserves remain at a level which the Authority maintains a comfortable cash-flow.

The Authority relies on income from the Government to administer and enforce the laws relating to competition in Jersey, and to provide ongoing support to the Government in introducing a telecoms security regime in Jersey. Income is also received from merger/acquisition applications and the number of applications is unpredictable so the fee income can vary year on year. The Authority is also responsible for regulating port operations, postal services, and telecommunications: an annual licence fee is calculated based on the forecast cost of regulating that sector. As a non-profit making body, the Authority may return excess funds or hold the funds for future work as detailed in the Authority s business plan.

The budgeted income versus actual income in 2023 was as follows:

Income

Government Funding: Competition and Telecoms Security

Competition Law: Grant funding is received from Government to cover the cost of administering and enforcing competition law. In 2023, the grant received was £747,000 (2022: £747,000) which supported the Authority s rolling programme of market studies, and administering the competition law.

In total, the cost for all competition law activity in 2023 was £632,093 (2022: £653,840), resulting in a surplus for the year of £114,907 (2022: £93,160). With the agreement of the Department, grant income in excess of costs has been held to fund future work.

Telecoms Security: A further grant of £150,000 was received from Government in 2022 to cover the Authority s 2023 internal and external costs associated with supporting the Government s project and development of a telecoms security compliance regime (£150,000 was received in 2021 for 2022 costs). In total, the cost for all Telecoms Security work was £175,787 (2022: £67,589), with the remaining balance of the grant being carried over into 2024.

Merger and Acquisition Fees

Fees are received from businesses making applications for the approval of notifiable mergers and acquisitions. The number of applications in any given year is unpredictable. A merger will not be registered unless the relevant fee has been paid in full, which is based on the fair market value of the total consideration received by the seller(s).

If a Second Detailed Review is required, further fees are payable based on the resources required to conduct the review. During 2023, the income, costs and surplus for the year amounted to:

Licence Fees: Ports, Post and Telecoms

Sector specific regulation is funded through licence fees paid by licensed operators in each of the ports, post and telecoms sectors. The licence fees are calculated based on the forecasted cost of regulating the sector for the year in question. A breakdown of the licence fees charged, the cost of regulating the sector, and surplus/(deficit) for year is provided below:

* Includes income recognised following the successful application to the 5G Spectrum by two operators

Other Income

Strategic postal review: In 2021, £140,000 was received from Jersey Post to support the Authority s review to consider how best to continue to deliver effective supervision of the postal sector. In 2023 a total income of £117,732 (2022: £17,400) was recognised to offset the costs incurred to conduct the review, this income being separately ring-fenced.

999 Liaison Committee: In 2023, the Authority recognised improvements could be made to the oversight of the public emergency call service. In May 2023 the Authority successfully established a committee to provide technical and operational oversight of the lsland s public emergency call service, with the support of Justice and Home Affairs (the JHA). The Authority received a £15,000 contribution from the Government to facilitate this and offset the costs incurred. The JHA Department has now taken over the administration of the Committee.

2023 Income

Competition (32%) M&A (14%)

Other (2%) Ports (3%)

Post (8%)

Telecoms (34%) Telecoms Security (7%)

Expenditure

The expenditure budget for 2023 was set of £2,684,479 (2022: £2,252,295), covering all planned activities for the year.

Members of the Authority were updated on a regular basis of the expenditure against budget. At the end of the year, total expenditure was £151,154 (7%) under budget.

The most significant underspend being within consultancy and legal fees in relation to the various reviews and other cases, which were either supported in-house or have been rolled forward to 2024.

2023 Expenditure

by Class

Competition (25%) Post (9%)

M&A (13%) Telecoms (35%)

Ports (11%) Telecoms Security (7%)

2023 Expenditure

by Type

Establishment (9%) Salaries & Staff (44%) Consultancy & Legal (41%) Supplies & Services (3%) Office Premises (3%)

Reserves

In line with the reserves policy, the Authority ensures that all regulated operators reserves and Government funding are robustly monitored and remain at a level which the Authority maintains comfortable cash-flow. As at 31 December 2023 the reserve balances for competition grant and regulated operators were as follows:

The 2024 Business Plan outlines the projects which the Authority will be completing, utilising the reserves carried forward from 2023 to support the work to be performed.

2023 Results

1,000,000 800,000 600,000 400,000 200,000

0

Competition M&A Ports Post Telecoms -200,000

-400,000

Income Expenditure Surplus/Deficit

Staff Resources

The Authority is supported by a number of permanent staff and specialist consultants with the appropriate skills and experience to undertake the work required.

Two new members of staff joined the Team in 2023, filling previously identified vacant positions. This has helped alleviate the resource risk to delivery which has been in place since 2020.

Specialist Consultants

In line with its policy to outsource specialist areas of work, the Authority contracted a number of specialist firms during 2023. These contracts were to support more complicated merger decisions and market studies, as well as investigations in the telecoms sector. Where appropriate, these costs are re-charged to the companies concerned.

Sustainability Update

Being able to report credibly on the Authority s internal sustainability initiatives is important to demonstrate support for the Government of Jersey s Carbon Neutral Roadmap. Reliable internal sustainability assessments will also create synergies with other workstreams, placing the Authority in a good position to advise and lead other stakeholders.

Our work so far:

An independent baseline assessment carried out in 2022 found the Authority is in line with other similar sized organisation in terms of its environmental impact, with very small Scope 1 and 2 emissions, due to our office- based work and low carbon electricity supply. It also found that we are in a good position to reduce our impact in areas such as business travel, our largest source of Scope 3 emissions, by taking actions to reduce the need for travel and organising meetings online. We have taken into account advice from the initial report during our office refurbishment, and continue to monitor our impact as an office-based organisation.

Following on from this the Board receives regular reports on internal sustainability which includes staff and well- being initiatives, charity engagement and articulating the Authority s role within the wider community.

The climate emergency is now an integral part of the risk management process, with the Authority s position reviewed regularly throughout the year.

Next steps:

Our organisational carbon assessment will be recalculated on an yearly basis, to facilitate comparison with the baseline year of 2022 and to allow us to understand our progress in this area, with a view to reducing emissions in the future. We plan to build on the approach and also start reporting against Sustainable Development Goals as part our our annual review of sustainability. Internally we will monitor developments and requirements in this important area while seeking to cut our carbon emissions in different ways.

External Sustainability

The Authority has no regulatory responsibilities or duties in this area. However, it does understand how competition and consumer laws can help support the Government in meeting its carbon neutrality goals.

In line with its wider vision of healthy and sustainable markets, the Authority also completed a review of sustainable practices in regulated sectors, with a view to inform public debate and help shape a path towards a more sustainable, resilient and environmentally conscious future. The key findings of this review were as follows:

 Every Licensee which took part was both aware and well versed in the importance of sustainability matters

generally and their individual corporate responsibilities. Given the diversity of markets regulated, there is a diverse range of challenges and resource dedicated to sustainability matters.

 Further, in relation to specific sectors, the ports are performing very well in terms of current sustainability and

future focus, with emissions well understood and managed. The postal sector recognises the importance of sustainability as well, with postal sustainability having increased in prominence in the corporate agenda, however there is less disclosed data available relative to ports. The telecommunication sector sees a mixture of players in terms of size and firm complexity, with different sustainability challenges, but generally it is also demonstrating a willingness to implement sustainability policies and approaches. Disclosure in the telecommunications sectors ranges from excellent to little information available.

A number of projects were carried out by the Authority in 2023 with a direct impact on the community as a whole such as market studies into school uniforms and another on groceries. Ensuring competitive markets also has a direct and positive impact on consumer welfare.

Corporate  governance  relates  to  how  an  organisation  is  led  and  managed,  promoting  transparency  and accountability. Regulation of port operations, postal services and telecommunications all support responsible corporate governance by licensed entities.

Performance: Competition

2023 saw a return to previous levels of merger notifications and an increase in the outreach and advocacy work carried out. In addition, two market studies were completed (groceries and school uniforms), with a number of recommendations made to Government and market participants.

Administration of the Competition Law

Advocacy and Training Engagement with Business: a lunch and learn session for the National Continue to promote and Association of Women in Construction (NAWIC) was held during November, support competitive markets  focussing on the importance of competition and risks to businesses in failing in Jersey by the provision of  to comply with the Competition Law.

information and guidance for

different stakeholder groups. Given the success of this event, and resources permitting, more such sessions

are being planned for 2024.

Competition and Innovation Blog: in September, the Jersey Economics Unit published a guest blog written by Sarah Price on how competition can help Jersey become more productive. This was picked up by the International Institute of Communications (ICC) and an updated version, taking into account digital markets, was published by the ICC. Competition and Productivity  Official Government of Jersey Blog

Competition Investigations Carry out investigations into possible breaches of the competition law and address complaints received.

Potential failure to notify a merger: from time to time, the Authority is made aware of mergers or acquisitions which have taken place which may have required its advance approval. This information may come through its own investigations or reported to it. In these circumstances, the Parties will be contacted and provided with further information and guidance, if necessary, There were a number of such approaches during 2023.

Competition enquiries: the team have also managed a variety of competition enquiries and/or concerns raised by businesses and members of the public. These are considered carefully, reflecting on the Competition Law and the Authority s relevant guidelines. Where appropriate, information and guidance is  provided  or  an  investigation  may  be  initiated.  Such  complaints  and concerned remain in confidence unless a formal investigation is launched.

Potential anti-competitive arrangement: during 2023, there was consideration of  a  potential  anti-competitive  arrangement,  contrary  to  Article  8  of  the Competition Law. This has not, as yet, resulted in a formal investigation.

Competition Law Amendments Vertical Block Exemptions: in April 2023, the Minister signed the Vertical Government has identified a Block Exemption Order, reducing the regulatory administration Jersey firms package of legislative reform  face when making certain types of supply and distribution arrangements. proposals and areas for further  The  Order  ended  the  requirement  for  businesses  to  obtain  regulatory consideration for the Competition  approval by exempting certain vertical arrangements, provided they meet Law. The Authority is working  certain conditions. This aims to help provide clarity for arrangements between with Government to ensure  businesses operating at different levels of the production or distribution chain competition legislation works for  that may otherwise have required the Authority s approval.

the benefit of the Island.

C-001 Vertical Block Exemption Consultation Final Advice | JCRA

Competition (Vertical Arrangements Block Exemption) (Jersey) Order 2023 (jerseylaw.je)

Competition Law Amendments: through the year, the Authority worked with Government providing feedback on proposals for changes to the Competition Law. The proposed changes are wide ranging, covering merger control, market studies, settlement and commitments, and other ancillary changes. This work to bring the legal framework up-to-date will continue in 2024.

Merger Control

Merger Control First Review: seven mergers were cleared after First Review in 2023: Assess notified mergers, with

a focus on those which could    Tindle Broadcasting, Bailiwick Broadcasting (C-054)

weaken competition, raise prices    J J Fox International, Guardian Medical Supplies (C-057)

and reduce quality, innovation

  Jackson s, Van Mossel (C-053)

and choice for Islanders. The

assessments are carried out in    KP Services, All Island Media (C-059)

line with published guidelines.   Co-Op, Savory & Moore (Lloyds Pharmacy) (C-061)

 ARAG SE, DAS UK (C-063)

 Aviva, AIG (C-062)

Sure, Airtel Second Detailed Review: the Authority s consideration of the proposed acquisition of Jersey Airtel by Sure continued through 2023. Having identified that the transaction would likely give rise to serious competition concerns, it determined that may lead to a substantial lessening of competition in  Jersey.  The  Parties  then  submitted  further  commitments  designed  to address the competition concerns. As a result, the clock was stopped on the application for approval whilst the Parties prepared submission of further information. The clock will restart once this information has been received.

Market Studies

Competition Law Amendments Market Studies Law Amendments: through the year, the Authority worked Government has identified a  with  Government  providing  feedback  on  proposals  for  changes  to  the package of legislative reform  Competition Law with respect to Market Studies.

proposals which include new

powers for market studies.

Market Study Advocacy Market  Study  Advocacy:  through  the  year,  the  Authority  has  continued Use market studies to promote a  to advocate for introduction and follow through of its recommendations. competitive environment and raise  These include, for example, media comment to support Alcohol Pricing and awareness of competition policy  Promotions recommendations, contributions to Scrutiny and the Ports Policy and its benefits among businesses,  consultation with respect to Freight Logistics and the launch of a Telecoms consumers and public institutions.  Market Review, in part to address recommendations from the Telecoms Retail This includes follow up work to  Pricing Market Study on consumer protection.

support the findings of completed

market studies.

Market Study Delivery Undertake a targeted programme of market studies to address issues with competition in markets where change will most benefit Islanders.

School Uniforms: In April 2023, the Authority completed a market study into the on-island school uniform market. The study found that a high proportion of school wear items are branded and/or compulsory; the number of such items were often greater than 40% of the total number of listed school uniform items. These items represent an additional consumer expense, when compared to fewer branded items, or non-branded (generic) school wear items. Working closely with Government and other stakeholders the Authority developed supporting information on competitive tendering processes and this was issued alongside Government guidance to schools in December 2023.

School Uniforms Market Study

Groceries: In September 2023 the Authority issued its final report into the Groceries market. While competition is working, the report found that other factors are contributing to higher prices for consumers. It identified three recommendations for  policy  makers  to  further  support  the  competitive process  and  consumers,  including  measures  to  support  greater  price transparency and competition. Groceries Market Study

Electricity:  In  October  2023  the  Authority  launched  a  market  study into  electricity.  This  study  has  set  out  to  consider  efficiency,  market characteristics, comparative data, as well as reviewing current and future market developments and their likely impact on competition. The study will conclude in 2024.

Electricity Market Study

Performance: Port Operations

Highlights of the Year

2023 was the fourth year of operation of the current regulatory regime, and the Authority was required to undertake a review to give effect to a new regulatory framework for 2025. To implement this, the Ports regulatory review was launched in February 2023 and significant progress has been made over the course of the year against each of the project milestones.

Performance Review

Compliance The Authority continued to monitor and review Ports of Jersey Monitor compliance with the law and Limited (the PoJL) compliance with the price control during the licence conditions, and investigate  course of 2023, alongside its wider licence obligations.

possible breaches.

Consumer Policy & Support During  2023,  engagement  was  held  with  a  small  number  of Support users of air and sea port  stakeholders seeking to complain about either the services offered services for example, addressing  or the actions taken by PoJL. However, the Authority did not find consumer and business complaints. any evidence of regulatory or competition concerns and no formal

cases were opened.

Government Policy The Authority has contributed to the Government s Draft Ports Policy Continue to provide support to  Framework and responded formally to the public consultation. government about how they can design

and implement ports policy in a way that

protects and promotes the interests of

Islanders.

Quality of Service The quarterly Quality of Service Reports for 2023 can be found here: Analyse and publish quality of service  Ports of Jersey Quality of Service Reporting 2023. The Authority is data on port operations in Jersey to  reviewing the quality of service measures as part of the regulatory ensure customers continue to receive  framework review and expects to have refined measures in place the standards expected. for 2025 onwards.

Ports Regulatory Framework Review The call for information process was successfully completed in Consider the licence framework for port  April (following initial Authority engagement meetings with PoJL operations in Jersey and the regulatory  in March), and work is progressing toward completion of a robust policy framework, including the future  regulatory and financial model and framework. An Information price control and future quality of  Note on preliminary policy analysis was published in August and a service reporting. further Project Update was issued in December 2023. This project

will complete in 2024.

Regulatory Review of Air and Sea Port Operations

Performance: Postal Services

Highlights of the Year

The major focus of the Authority s work on Postal Services1 during 2023 was on the Strategic Review. This included the issuing of comprehensive proposals for the future approach to regulation of the sector. Building on this work the Authority aims to complete the Strategic Review in 2024.

Performance Review

Compliance The Authority continued to monitor and review compliance with Monitor compliance with the law and Licence Conditions during the course of 2023.

licence conditions, and investigate

possible breaches.

Consumer Policy & Support Mail Plane: The decision made by Royal Mail to remove the Mail Support users of postal services for  Plane  servicing  Jersey  generated  significant  public  comment. example, addressing consumer and  Although outside the Authority s remit, a statement was made business complaints. to set out the Authority s position and emphasise that this was

a commercial decision by Royal Mail.

User complaints: There was one complaint raised by a consumer about Jersey Post during the year. This did not result in a formal case being opened and was resolved directly with Jersey Post.

Quality of Service Quality of Service Reports are prepared on an annual basis and Analyse and publish quality of service  published in the following year. In 2023 the results for 2022 were data on port operations in Jersey to  published and can be found here:  L-004 Jersey Post Quality of ensure customers continue to receive  Service  Report  2022.  The  Authority  is  reviewing  the  quality  of the standards expected. service measures as part of the Strategic Review and expects to

have refined measures in place for 2024 onwards.

Strategic Review of Postal Services The call for information process was successfully completed in This review started in 2022 and will  January and comprehensive proposals were consulted on in July finish in 2024. The aim of the review is  2023. These covered updates to the regulatory framework, policy to consider how best the Authority can  measures to support the universal service obligation and proposed continue to deliver effective supervision  refinements  to  quality  of  service.  This  project  will  complete  in of the postal sector. 2024 with the issuing of the Final Decision and required statutory

documentation to implement the proposals.

1 The regulatory regime directly or indirectly affects letters and packages weighing 20 kilograms or less which are conveyed or to be conveyed by a postal operator. With respect to parcels, only those weighing 20 kg or less fall within the definition of a postal service and there is no requirement to hold a licence for providers of inbound parcel services on a commercial contract direct with a supplier. This means most parcel delivery is not subject to any licensing requirements and there are many different parcel delivery operators in Jersey.

Performance: Telecommunications

Highlights of the Year

The work programme for 2023 continued to ensure that the current regulatory framework is enforced, and remained both effective and fit-for-purpose. Work-streams, such as market reviews, were initiated to help ensure the regulatory framework continues to promote and support competition in telecoms.

Administration of the Telecoms Law

Compliance Security Assurance Framework: following a previous direction to JT (see Monitor compliance with the T-046), the Authority continued to monitor compliance with a Report received law and licence conditions,  from JT in May 2023. The next report is due in February 2024.

and investigate potential

breaches. Alongside this, carry

out follow up work on previous  Licence Condition 37: a number of price changes by JT were reported to and directions issued, the JT  assessed by the Authority under this Licence condition. These are reviewed accounting and cost allocation  to ensure that there is a level playing field for retail service providers.

audit and current open cases.

JT Outages: the Authority concluded its case into a JT outage in September 2022, issuing a financial penalty of £380,000. The investigation of a further incident in December 2022 was on-going at the end of the year. Telecommunications Case Opening Statement

Other Outages: an investigation was initiated into outages by another licensed operator. Further information on this will be published during 2024.

Consumer Policy & Support Officers  dealt  with  a  number  of  complaints  raised  by  consumers  and Support consumers for  businesses throughout the year. The focus was to support consumers in example, consumer and  resolving these directly with the company concerned and if necessary also business complaints and  providing direct support.

by following up on the  Officers also dealt with a number of complaints about market practices from recommendations of the  Other Licensed Operators. In considering these Officers have had extensive telecoms retail pricing  engagement  and  will  continue  to  consider  concerns  raised  by  market market study. participants.

As noted above, the recommendation of the telecoms retail pricing market study are being considered in the Telecoms Market Review.

Government Policy Officers hold regular engagement sessions with Government Officials Continue to support the  throughout the year, to keep them up to date with latest developments. implementation of Government  The Authority s work is also framed within the context of the Telecoms telecoms policy. Strategy, for example by ensuring JT supplies other operators with

wholesale access to the fibre network, which allows access seekers to supply and compete on differentiated retail services.

Market / Price Reviews Telecoms Market Review: in November 2023, the Authority published Market reviews are a key tool which  a Call for Information, marking the start of the Telecoms Market Review. allow the identification of competitive  The Review is framed by three main themes:

conditions prevailing in a market and  1. Government Telecoms policy framework and action plan;

whether any regulatory interventions

are required. The Authority planned  2. Regulatory and economic policy; and

to undertake any necessary market  3. Consumer policy.

reviews in 2023.  The aim of the Review is to further develop a robust and enduring

regulatory framework, enabling the Authority to continue to deliver effective regulation of telecoms services. The Review is a multiyear project and is expected to conclude in early 2025.

Telecoms Statistics Telecommunications Statistics and Market Report 2022 - In June 2023, Publish annual statistics, a  the Authority published its annual telecoms statistics report for 2022. joint project with the Guernsey  This report is produced by Statistics Jersey, jointly with the GCRA. It Competition Regulatory Authority (the  shows a comprehensive breakdown of the telecoms market in both GCRA). Collect pricing data to be able  bailiwicks, including detailed analysis of specific networks such as to assess how prices are changing  fixed line broadband, the mobile market, and an overview of off-Island through time and implement an  links. The report can be found at: Telecommunications Statistics and appropriate form of cost reporting  Market Report 2022

for JT.

Regulatory Reporting: This project launched in April 2023 and its objective is to develop a regulatory financial reporting template to enable JT to provide relevant regulatory accounting information to the Authority on an ongoing basis. A draft template was issued for consultation in July 2023 and the Authority intends to complete this project in 2024.

Telecoms Security

Telecoms Security Contribute to the creation of Government legal and procedural instruments: Provide ongoing support to  Through  the  course  of  the  year  Officers  continued  to  work  closely  with Government in introducing a  Government to support the development of the Telecoms Security legislation telecoms security regime in  which is expected to be finalised in mid-2024.

Jersey.

Develop Regulatory Compliance Regime: Work on the Authority s approach to monitoring compliance is underway with the addition of a Technical Case Officer to the Authority in 2023 with a view to supporting the operation of this regime.

Spectrum & Numbering

Compliance Mast  Audit:  the  annual  audit  was  carried  out  in  September, Ensure that licensed operators adhere to and published in November. All sites were reported well within Ofcom requirements in relation to spectrum  international  standards.  To  support  public  engagement  an licensing and numbering. animation was also produced to help explain why mast audits

are carried out. Advice and Guidance | JCRA

Licensing Satellite Broadband Licence: it was determined that satellite Review requirements for local satellite  broadband providers would be required to hold a licence in broadband licensing in response to global  Jersey and progress has been made in ensuring that this is the commercial and technical developments in  case and this process will conclude in 2024.

the area.

Numbering Licence Condition CLI Update: the Authority concluded its initial Ensure that licensed operators remain  CLI review by adding a new CLI licence condition to relevant compliant with Ofcom rules around the  telecoms licences and issuing associated guidance to provide use of number ranges. To support this,  regulatory expectations and understanding.

complete the calling line identity review,

which will ensure increased protection for

Islanders from fraudulent callers.

Spectrum Allocation 5G  Spectrum  Licences:  after  inviting  applications  for  new Complete the 5G spectrum award  5G  spectrum  packages  in  2022,  the  Authority  progressed process, including required licence  recommendations that Ofcom issue spectrum licences to JT and changes, and make the appropriate award  Sure. This took place during 2023, with a further award process recommendations to Ofcom. To support  to consider issue of the remaining 5G band allocation planned 5G, undertake a review of 5G spectrum  for 2024.

to determine potential de-fragmentation

requirements for key bands. Spectrum De-fragmentation: enabling the full deployment of 5G Alongside 5G, monitor wider spectrum  requires change to existing spectrum licences and in 2023 the developments that affect Jersey. Authority considered and implemented a decision allowing this

to take place.

Priorities for 2024

As the curtains closed on 2023, the Authority took a moment to reflect on the achievements, challenges, and the invaluable contributions of its dedicated team and partners. Now, with eyes firmly set on the horizon, the Authority eagerly anticipates the opportunities and challenges that 2024 will bring.

One significant step towards shaping the future was the publication of the 2024 business plan at the close of 2023, a document carefully crafted after extensive consultation with various stakeholders. This forward-looking plan promises to be another challenging yet pivotal roadmap for the Authority. With substantial sector reviews on the agenda and a commitment to delivering a series of market studies, the Authority aims to align its efforts with Government objectives. The outcomes of these studies will not only support Government aims but will also provide valuable recommendations to enhance the value and service provided to consumers.

Looking ahead, the Authority pledges to strive for the best outcomes for Jersey, with a commitment to excellence in delivering its business plan. The dedication of the entire team to providing the best value and service to all stakeholders remains paramount, ensuring that the highest standards are maintained in all endeavours.

Expressing gratitude for the hard work and dedication exhibited by the team and partners throughout 2023, the Authority acknowledges that without their collective efforts, the Authority would not have achieved its excellent results. The support received from the Board is also recognised and appreciated, underscoring the collaborative nature of the Authority s success.

As the Authority sets its sights on 2024 and beyond, the commitment to protect consumers and ensure robust competition for the benefit of the Island and its businesses remains a guiding principle. The challenges that lie ahead are viewed not as obstacles but as opportunities for growth, improvement, and continued excellence in regulatory governance.

In closing, the Authority expresses anticipation for another challenging yet successful year. The dedication, resilience, and collaborative spirit that have defined the Authority s journey will undoubtedly continue to shape its future. We look forward to ensuring that the regulatory landscape in Jersey remains progressive, transparent, and supportive of the Island s vibrant community and businesses.

The priorities for 2024 remain consistent with previous years, with key activities planned in each during 2024. The 2024 business plan can be found here: 2024 Business Plan | JCRA.

Accountability Report

The Accountability Report provides key accountability information on the Authority. It comprises:

1. Corporate Governance Report
2. Remuneration and Staff Report
3. Accountability Statement
4. Grant Assurance Statement

The Chair and CEO confirm that this annual report and accounts as a whole is fair, balanced and understandable, taking responsibility for the document and the judgements required.

............................................................. .............................................................

Stephanie Liston  Tim Ringsdore Chair CEO

23 April 2024 23 April 2024

Corporate Governance Report

The Board

The 2001 Law requires the Authority to comprise, as a minimum, three Members with one Chair. As at 31 December 2023, the Authority consisted of a Chair, three Non-Executive Members and one Executive Member. The Authority remained quorate at all times.

The Authority believes that Members have a wide range of experience which ensures effective leadership and control of the Authority.

The role of the Chair and the Non-Executive Members includes the following responsibilities:

1. Ensuring that the Authority s business is conducted in an impartial, open and efficient manner and in accordance with international best practice.
2. Providing advice and guidance in decision-making and on the strategic direction of the Authority.
3. Maintaining a close working relationship with the Executive, providing support and guidance as required.
4. Building and maintaining a positive reputation for the Authority so that it commands the trust and respect of all its stakeholders the citizens, consumers, businesses, and the States of Jersey and in doing so, enhances Jersey s reputation nationally and in the international community.
5. Ensuring that the Authority maintains an appropriate level of scrutiny of the operations and governance of the organisation, maintaining the Authority s independence.

Appointments to the Authority: the Law provides that the Chair is appointed by the Minister, as are other Members following consultation with the Chair. Vacancies which arise are filled through an open and transparent process, consistent with the procedures recommended by the Jersey Appointments Commission. Stephanie Liston was appointed as Chair on 1 July 2020. There were no changes to the composition of the Authority during 2023.

Board Apprentice: in 2023, Sarah Bisson was appointed as a Board Apprentice for a period of one year.

Significant Interests: whilst no distinction is made between Non-Executive and Executive Members of the Authority in the 2001 Law, the majority of Members are not also officers, employees or agents employed under Article 8 of that Law. They are independent of management and free of any other relationship that could materially interfere with the exercise of their judgement.

All Members have made declarations of interest, and no Member has declared significant company directorships or other interests that may have conflicted with their responsibilities. No Member had any other related parties interests.

Meetings: the Authority meets regularly as a Board. Customarily, there are eight meetings each year with additional meetings when circumstances require it. During 2023, the Authority met formally seven times, with two interim meetings. Meetings were held either in person or via video conference call.

Papers and supporting documentation are distributed to Members a week in advance of each meeting. Each board meeting is effectively managed by the Chair, who finalises the agenda for each meeting in conjunction with the CEO and Company Secretary.

The agenda will include items that require decisions by the Authority. These are made after receiving comprehensive papers and information from Officers that ensure there is sufficient detailed information regarding the subject matter, including advice from the General Counsel on any legal aspects. These issues are discussed by the Authority which is then in the position to make effective decisions. On occasions, the Authority will also engage with subject matter experts to provide further information prior to making final binding decisions.

The Board also discuss governance matters, ensuring that the Authority is satisfied that the organisation is being managed effectively and efficiently on a day-to-day basis.

Committees

The 2001 Law provides that the Authority may establish committees whose members may, but need not be, Members, officers, employees or agents of the Authority.

Remuneration Committee

The Authority established a Remuneration Committee in 2021. The duties of the Committee are to make recommendations to the Minister for non-executive remuneration, and to the Authority on remuneration for the executive and senior management.

The Committee is tasked with the design of remuneration policies and practices to support strategy and promote long-term, sustainable success. Executive remuneration is aligned to the Authority s purpose and values, clearly linked to the successful delivery of the Authority s long-term strategy. The Committee uses its discretion to override any formulaic outcomes and to recover and/or withhold sums under appropriate specified circumstances.

When determining executive remuneration policy and practices, the Committee will take into consideration clarity, simplicity, risk mitigation, predictability, proportionality and alignment to culture.

The Committee is chaired by Paul Masterton, as Senior Non-Executive Member. At the end of the year Lara Stoimenova and Ian Walden were members.

Audit and Risk Committee

The Authority has established an Audit and Risk Committee, with Lara Stoimenova as Chair and Paul Masterton as a Member. Tim Ringsdore, as Chief Executive, attends meetings in an advisory capacity and the Committee is supported by Sarah Price , as Company Secretary, and Claire Kybett, as Finance Officer.

The key roles and responsibilities of the Committee relate to maintenance of robust internal control, financial reporting, compliance with laws and regulations, and working with the internal and external auditors.

The Committee oversees the financial reporting process to ensure the balance, transparency and integrity of financial information. The Committee also reviews:

Effectiveness of internal controls

Compliance with laws and regulations

Internal audit, including the effectiveness of outsourced internal audit function and adequacy of reports

External audit, including recommending the appointment and assessing the performance of the external auditor Risk management process, including overseeing the risk register

Application of corporate governance best practice

Members of the Authority during 2023

Attendance

Board Effectiveness Review: At the end of 2022, the Authority carried out a Board Effectiveness Review which considered the performance of the Board, the two Committees and the Chair. This process was repeated at the end of 2023, and carried out by the Company Secretary.

This exercise has provided valuable information on the performance and operation of the Authority, and identified areas for improvement, which included recommendations concerning board meetings, cyber risks, and preparedness for business or technology disruption. These will all be incorporated into the annual work programme.

The process will be repeated again at the end of 2024.

Company Secretary: Sarah Price has been appointed as Company Secretary by the Authority to oversee the maintenance of a high standard of corporate governance and transparency for the organisation. To enable the Authority and its committees to discharge their duties, appropriate and timely briefing papers are distributed in advance of meetings. All Members have access to the Company Secretary, who is responsible for ensuring procedures, rules and regulations are followed.

Compliance: Rory Graham, a solicitor admitted in England and Wales, has been appointed General Counsel, with ultimate responsibility for legal and regulatory compliance.

Data Protection: Sarah Price is the Data Protection Officer for the Authority. There were no personal data incidents during the year reported to the Jersey Office of the Information Commissioner.

Public Finance Manual: the Authority has been designated as a Grant Receiving Body under the terms of the States of Jersey Public Finance Manual. The Authority is fully cognisant of its responsibilities as the recipient of public funds, and a Funding Agreement has been signed with Government. This can be found at: Governance framework | JCRA.

2 In 2024, Stephanie Liston was reappointed for a further term of two years.

3 In September 2023, Lara Stoimenova was reappointed for a further term of four years: JCRA: Re-appointment of Non-Executive Member

Risk Management

The Audit and Risk Committee is appointed by the Authority under Article 7 of the 2001 Law to assist the Authority in discharging its oversight duties.

The Authority operates a risk register that captures those risks with the potential to have a significant adverse impact on the operations of the Authority. The register was renewed afresh by the Authority and Team in November 2023, and the Authority came to a view on the key risks to the Authority fulfilling its statutory duties and objectives.

An agreed list of mitigations has been developed, and the process for the ongoing monitoring of risk adopted. The risk register is presented to each meeting of the Authority, and each board paper contains an assessment of the risk associated with the issue under consideration, linking back to the main register.

At the end of 2023, the Authority considered risks under the following categories:

 Legal (Legislation and Legal Powers):  taking account of changes in technology and alignment of policy

between the UK and EU, as well as out of date legislation, impacting on the licence frameworks and power of the Authority to take action.

 Relationships: the Authority is aware of the reputation risk associated with its relationships with its stakeholders,

and also with public understanding of the Authority s role and responsibilities.

 Resources:  as the Authority has grown and remit increased, there is a risk that responsibilities will exceed

available resources. There are also funding risks in the current economic climate.

 Other: other risks include those around sustainability, cyber security and the economic environment.

 Active Case Risks: at any given time, the Authority will be involved in a number of cases which will each raise

different types and levels of risk. Cases are risk assessed on a regular basis, with any higher risk issues reported to the Audit and Risk Committee for its attention.

Remuneration and Staff Report

The Authority believes that, within the constraints of being a public body, it should provide rewards that will attract and retain the high calibre management and staff necessary to fulfil its statutory remit and responsibilities.

Remuneration of Non-Executive Members

Article 5 of the 2001 Law provides that the Minister shall determine the remuneration of Members of the Authority. The Authority also compensates Members for reasonable out-of-pocket and other expenses occasioned in the reasonable course of carrying out their duties.

Details of the remuneration of Members of the Authority are set out in the following table:

Components of Executive Members Remuneration

The Executive Members may be both Members and employees of the Authority. The Chief Executive receives no fees as a Member of the Authority.

The main components of executive remuneration are salary and other benefits. The basic salary for the Executive Member of the Authority is determined by taking into account that individual s responsibility, performance and experience, together with market trends. Consistent with other salaries, the basic salary is reviewed annually by the Remuneration Committee.

In addition to salary, again consistent with all permanent members of staff, the Executive Member receives certain other benefits, specifically medical insurance, life insurance and critical illness cover. These benefits are not disclosed in the table below as they are not taxable benefits in kind.

Effective from 1 January 2023, the Authority introduced a well-being package which included the introduction of a non-contributory pension scheme and an annual subsidy of up to £500 per employee for well-being activity/ equipment, both of which are taxable benefits in kind. The Employer pension contributions made in relation to the Chief Executive Office and the well-being subsidy are disclosed in the table below:

Staff Report

Article 8 of the 2001 Law provides that the Authority may appoint such officers, employees and agents as it considers necessary for the performance of its functions. Staff costs are accounted for on a time spent, case-by-case basis, with non-case specific time split on an apportionment basis of competition (36%), mergers and acquisitions (4%), ports (5%), post (5%) and telecoms (50%). From 2024, telecoms security will be added, with the telecoms allocation amended to telecoms (45%) and telecoms security (5%).

At the end of 2023, in addition to the Chief Executive, the permanent members of the team were:  Chief Operating Officer   Case Officers x three

 General Counsel   Finance / Case Officer

 Chief Economist   Office Manager / PA

In addition, one zero hours contractor was employed to support general administration, and two part time contracted case officers, see Contracts section for detail.

The total staff costs for 2023 were £976,270 (2022: £701,105). There were no payments in compensation for loss of office made during the year.

Equality and Diversity

The Authority, in line with the Strategic Plans and its published Values, encompasses an excellent balance of local knowledge, gender balance and a diverse team culture.

The gender balance for permanent staff can be summarised as follows:

The Authority is committed to offering all staff equal opportunities in their career, support with their training and well-being, as well as ensuring an inclusive workplace.

As a result, the team is motivated and continues to deliver high standards to help shape and sustain the Island s economic future, for the benefit of Jersey consumers, citizens and businesses.

Contracts

The Authority employs a small team and together with two part-time contracted case officers, outsources the provision of specialist advice to external consultants and legal professionals where this is more cost effective than a dedicated in-house resource for that particular area.

Consultancy: In 2023, the cost was £821,405 (2022: £447,810), a significant increase on the prior year due to the Sure, Airtel second detailed review which is separately funded, the Ports review and the market studies in 2023, both supported by the reserves.

Legal: In addition, the Authority required specialist legal advice regarding the second detailed review and the telecoms security framework, both of which are separately funded, of £172,915 (2022: £Nil). Further specialist advice costing £34,133 was required in 2023 (2022: £67,681).

Contracts are awarded following a tender process where appropriate, with significant expenditure approved by the Authority. All contracts are actively managed by officers.

Accountability Statement

Members Report for the Financial Statements

The Members in office during the year are shown on page 33. Events during the year and subsequent to year end

There have been no events between the statement of financial position date and the date when the financial statements were authorised for issue that need to be disclosed or recognised in the financial statements.

Independent Auditor

RSM Channel Islands (Audit) Limited are appointed to act as auditor in accordance with Article 17 of the Competition Regulatory Authority (Jersey) Law 2001.

Members Disclosure

As far as the Members are aware, there is no relevant audit information of which the auditor has not been made aware. All reasonable steps have been taken by the Members in order to make themselves aware of any relevant audit information to establish that the auditor is aware of this information.

Members Responsibilities

The Members are responsible for preparing the Members Report and the financial statements in accordance with applicable law and regulations.

The Competition Regulatory Authority (Jersey) Law 2001 requires Members to keep proper accounts and proper records in relation to these accounts. The Members therefore consider themselves responsible for keeping adequate accounting records that are sufficient to show and explain the Authority s transactions and disclose with reasonable accuracy, at any time, the financial position of the Authority and which enable them to ensure that these financial statements comply with the Law. They also consider that they are responsible for safeguarding the assets of the Authority and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Law also requires Members to prepare accounts in respect of each financial year, and once audited by auditors appointed by the Comptroller and Auditor General, to submit to the Minister s Department the accounts together with the auditor s report. The Minister, in turn, must submit the accounts and auditor s report thereon to the States of Jersey.

The Members have elected to prepare the financial statements in accordance with United Kingdom Accounting Standards and applicable law.

In preparing the financial statements, the Members are required to:

Select suitable accounting policies and then apply them consistently; Make judgments and estimates that are reasonable and prudent;

State whether applicable UK Accounting Standards have been followed, subject to any material departures

disclosed and explained in the financial statements; and

Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the

Authority will continue in operation.

The Members confirm that these financial statements comply with these requirements.

Grant Assurance Statement

from the Authority to the Minister

I hereby confirm that the Authority has adhered to the terms and conditions of the Grant received from the Department for competition law administration and enforcement. The amount awarded by the Department during the year ended 31 December 2023 totalled £747,000.

There are appropriate controls in place within the Authority to ensure that funds are being spent appropriately and that value for money is being achieved, and the Grant and any addition funding awarded by the Department in 2023 was used for the purpose intended, which is for the administration and enforcement of the Competition (Jersey) Law 2005.

I confirm that the total amount of grant funding used to fund competition law administration and enforcement during the year ended 31 December 2023 was £632,093. The reserves position at the end of December 2023 was £360,827, of which £282,100 was committed costs associated with on-going market studies and other competition work which continued into 2024.

Tim Ringsdore, Chief Executive Officer

3939  | 2023 Annual R|  2023  Annual  Report eport & Accounts &  Accounts

FINANCIAL FINANCIAL

SSTATEMENTS TATEMENTS

Jersey Competition RJersey  Competition  Regulatory egulatory AAuthority uthority

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF  RS  M JERSEY COMPETITION REGULATORY AUTHORITY

Opinion

We  have  audited  the  financial  statements  of  Jersey  Competition  Regulatory  Authority  (the  "Authority"),  which comprise  the  statement  of  financial  position  as  at  31  December  2023,  and  the  statement  of  comprehensive income  for  the  year  then  ended,  and  notes  1  to  13  to  the  financial  statements,  including  a  summary  of significant  accounting  policies.  The  financial  reporting  framework  that  has  been  applied  in  their  preparation  is applicable  law  and  United  Kingdom  Accounting  Standards.

In  our  opinion  the  financial  statements:

e  give  a  true  and  fair  view  of  the  state  of  affairs  of  the  Authority  as  at  31  December  2023  and  of  its

results  for  the  year  then  ended;

e  have  been  properly  prepared  in  accordance  with  United  Kingdom  Accounting  Standards;  and

e  have  been  prepared  in  accordance  with  the  Competition  Regulation  (Jersey)  Law,  2001.

Basis  for  opinion

We  conducted  our  audit  in  accordance  with  International  Standards  on  Auditing  (UK)  (ISAs  (UK)')  and applicable  law.  Our  responsibilities  under  those  standards  are  further  described  in  the  Auditor's  responsibilities

for  the  audit  of  the  financial  statements  section  of  this  report.  We  are  independent  of  the  Authority  in accordance  with  the  ethical  requirements  that  are  relevant  to  our  audit  of  the  financial  statements  in  Jersey, including  the  FRC's  Ethical  Standard,  and  we  have  fulfilled  our  other  ethical  responsibilities  in  accordance  with these  requirements.  We  believe  that  the  audit  evidence  we  have  obtained  is  sufficient  and  appropriate  to provide  a  basis  for  our  opinion.

Conclusions  relating  to  going  concern

In  auditing  the  financial  statements,  we  have  concluded  that  the  Member's  use  of  the  going  concern  basis  of accounting  in  the  preparation  of  the  financial  statements  is  appropriate.

Based  on  the  work  we  have  performed,  we  have  not  identified  any  material  uncertainties  relating  to  events  or conditions  that,  individually  or  collectively,  may  cast  significant  doubt  on  the  Authority's  ability  to  continue  as  a going  concern  for  a  period  of  at  least  twelve  months  from  when  the  financial  statements  are  authorised  for issue.

Our  responsibilities  and  the  responsibilities  of  the  Members  with  respect  to  going  concern  are  described  in  the relevant  sections  of  this  report.

Other  information

The  Members  are  responsible  for  the  other  information,  which  comprises  the  Message  from  the  Chair, Introduction,  Performance  Report  and  Accountability  Report.  Our  opinion  on  the  financial  statements  does  not cover  the  other  information  and  we  do  not  express  any  form  of  assurance  conclusions  thereon.

In  connection  with  our  audit  of  the  financial  statements,  our  responsibility  is  to  read  the  other  information  and, in  doing  so,  consider  whether  the  other  information  is  materially  inconsistent  with  the  financial  statements  or our  knowledge  obtained  in  the  audit  or  otherwise  appears  to  be  materially  misstated.  If  we  identify  such material  inconsistencies  or  apparent  material  misstatements  of  this  other  information,  we  are  required  to  report that  fact.

We  have  nothing  to  report  in  this  regard. Responsibilities  of  Members

As  explained  more  fully  in  the  Members'  Responsibilities  Statement  set  out  on  page  37,  the  Members  are responsible  for  the  preparation  of  the  financial  statements  in  accordance  with  United  Kingdom  Accounting Standards  and  for  being  satisfied  that  they  give  a  true  and  fair  view,  and  for  such  internal  control  as  the Members  determine  is  necessary  to  enable  the  preparation  of  financial  statements  that  are  free  from  material misstatement,  whether  due  to  fraud  or  error.

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF  RS  N Â JERSEY COMPETITION REGULATORY AUTHORITY (continued)

Responsibilities  of  Members  (continued)

In  preparing  the  financial  statements,  the  Members  are  responsible  for  assessing  the  Authority's  ability  to continue  as  a  going  concern,  disclosing,  as  applicable,  matters  related  to  going  concern  and  using  the  going concern  basis  of  accounting  unless  the  Members  either  intend  to  liquidate  the  Authority  or  to  cease operations,  or  have  no  realistic  alternative  but  to  do  so.

Auditor's  responsibilities  for  the  audit  of  the  financial  statements

Our  objectives  are  to  obtain  reasonable  assurance  about  whether  the  financial  statements  as  a  whole  are  free from  material  misstatement,  whether  due  to  fraud  or  error,  and  to  issue  an  auditor's  report  that  includes  our opinion.  Reasonable  assurance  is  a  high  level  of  assurance,  but  is  not  a  guarantee  that  an  audit  conducted  in accordance  with  ISAs  (UK)  will  always  detect  a  material  misstatement  when  it  exists.  Misstatements  can  arise from  fraud  or  error  and  are  considered  material  if,  individually  or  in  the  aggregate,  they  could  reasonably  be expected  to  influence  the  economic  decisions  of  users  taken  on  the  basis  of  these  financial  statements.

As  part  of  an  audit  in  accordance  with  ISAs  (UK),  we  exercise  professional  judgement  and  maintain professional  scepticism  throughout  the  audit.  We  also:

e  Identify  and  assess  the  risks  of  material  misstatement  of  the  financial  statements,  whether  due  to  fraud  or

error,  design  and  perform  audit  procedures  responsive  to  those  risks,  and  obtain  audit  evidence  that  is sufficient  and  appropriate  to  provide  a  basis  for  our  opinion.  The  risk  of  not  detecting  a  material misstatement  resulting  from  fraud  is  higher  than  the  one  resulting  from  error,  as  fraud  may  involve collusion,  forgery,  intentional  omissions,  misrepresentations,  or  the  override  of  internal  control.

e  Obtain  an  understanding  of  internal  control  relevant  to  the  audit  in  order  to  design  audit  procedures  that

are  appropriate  in  the  circumstances,  but  not  for  the  purpose  of  expressing  an  opinion  on  the  effectiveness

of  the  Authority's  internal  control.

e  Evaluate  the  appropriateness  of  accounting  policies  used  and  the  reasonableness  of  accounting  estimates

and  related  disclosures  made  by  the  Members.

e  Conclude  on  the  appropriateness  of  the  Members'  use  of  the  going  concern  basis  of  accounting  and,

based  on  the  audit  evidence  obtained,  whether  a  material  uncertainty  exists  related  to  events  or  conditions that  may  cast  significant  doubt  on  the  Authority's  ability  to  continue  as  a  going  concern.  If  we  conclude that  a  material  uncertainty  exists,  we  are  required  to  draw  attention  in  our  auditors'  report  to  the  related disclosures  in  the  financial  statements  or,  if  such  disclosures  are  inadequate,  to  modify  our  opinion.  Our conclusions  are  based  on  the  audit  evidence  obtained  up  to  the  date  of  our  auditors'  report.  However, future  events  or  conditions  may  cause  the  Authority  to  cease  to  continue  as  a  going  concern.

e  Evaluate  the  overall  presentation,  structure  and  content  of  the  financial  statements,  including  the

disclosures,  and  whether  the  financial  statements  represent  the  underlying  transactions  and  events  in  a manner  that  achieves  fair  presentation.

We  communicate  with  those  charged  with  governance  regarding,  among  other  matters,  the  planned  scope  and timing  of  the  audit  and  significant  audit  findings,  including  any  significant  deficiencies  in  internal  control  that  we identify  during  our  audit.

The  extent  to  which  the  audit  was  considered  capable  of  detecting  irregularities,  including  fraud Irregularities,  including  fraud,  are  instances  of  non-compliance  with  laws  and  regulations.  We  design

procedures  in  line  with  our  responsibilities,  outlined  above,  to  detect  material  misstatements  in  respect  of irregularities,  including  fraud.  The  extent  to  which  our  procedures  are  capable  of  detecting  irregularities, including  fraud  is  explained  below.

The  objectives  of  our  audit  are  to  obtain  sufficient  appropriate  audit  evidence  regarding  compliance  with  laws and  regulations  that  have  a  direct  effect  on  the  determination  of  material  amounts  and  disclosures  in  the financial  statements,  to  perform  audit  procedures  to  help  identify  instances  of  non-compliance  with  other  laws and  regulations  that  may  have  a  material  effect  on  the  financial  statements,  and  to  respond  appropriately  to identified  or  suspected  non-compliance  with  laws  and  regulations  identified  during  the  audit.

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF  RS  N A JERSEY COMPETITION REGULATORY AUTHORITY (continued)

The  extent  to  which  the  audit  was  considered  capable  of  detecting  irregularities,  including  fraud  (continued)

In  relation  to  fraud,  the  objectives  of  our  audit  are  to  identify  and  assess  the  risk  of  material  misstatement  of the  financial  statements  due  to  fraud,  to  obtain  sufficient  appropriate  audit  evidence  regarding  the  assessed risks  of  material  misstatement  due  to  fraud  through  designing  and  implementing  appropriate  responses  and  to respond  appropriately  to  fraud  or  suspected  fraud  identified  during  the  audit.

However,  it  is  the  primary  responsibility  of  management,  with  the  oversight  of  the  Members,  to  ensure  that  the Authority's  operations  are  conducted  in  accordance  with  the  provisions  of  laws  and  regulations  and  for  the prevention  and  detection  of  fraud.

We  obtained  an  understanding  of  the  legal  and  regulatory  frameworks  that  the  Authority  operates  in,  focusing on  provisions  of  those  laws  and  regulations  that  had  a  direct  effect  on  the  determination  of  material  amounts and  disclosures  in  the  financial  statements.  These  included  compliance  with  the  Competition  Regulation (Jersey)  Law,  2001.

Our  testing  included,  but  was  not  limited  to:

e  enquiries  of  management  regarding  known  or  suspect  instances  of  non-compliance  with  laws  and

regulations;

enquiries  of  management  regarding  known  or  suspect  instances  of  irregularities,  including  fraud; undertaking  analytical  procedures  to  identify  unusual  or  unexpected  relationships;

review  of  minutes  of  Members  meetings  throughout  the  period;

testing  the  appropriateness  of journal  entries  and  other  adjustments;  and

agreement  of  the  financial  statements  disclosures  to  underlying  supporting  documentation.

Owing  to  the  inherent  limitations  of  an  audit  there  is  an  unavoidable  risk  that  some  material  misstatement  of the  financial  statements  may  not  be  detected,  even  though  the  audit  is  properly  planned  and  performed  in accordance  with  ISAs  (UK).  However,  the  principal  responsibility  for  ensuring  that  the  financial  statements  are free  from  material  misstatement,  whether  caused  by  fraud  or  error,  rests  with  the  Members  who  should  not  rely on  the  audit  to  discharge  those  functions.

In  addition,  as  with  any  audit,  there  remains  a  higher  risk  of  non-detection  of  fraud,  as  this  may  involve collusion,  forgery,  intentional  omissions,  misrepresentations,  or  the  override  of  internal  controls.  Our  audit procedures  are  designed  to  detect  material  misstatement.  We  are  not  responsible  for  preventing  non- compliance  or  fraud  and  cannot  be  expected  to  detect  non-compliance  with  all  laws  and  regulations.

Use  of  our  report

This  report  is  made  solely  to  the  Authoritys  Members  as  a  body,  in  accordance  with  Article  17  of  the Competition  Regulatory  Authority  (Jersey)  Law,  2001.  Our  audit  work  has  been  undertaken  so  that  we  might state  to  the  Authority's  Members  those  matters  we  are  required  to  state  to  them  in  an  auditor's  report  and  for no  other  purpose.  To  the  fullest  extent  permitted  by  law,  we  do  not  accept  or  assume  responsibility  to  anyone other  than  the  Authority  and  the  Authority's  Members  as  a  body,  for  our  audit  work,  for  this  report,  or  for  the opinions  we  have  formed.

DM  Clout  15a  (Heol)  lonutsnl

RSM  Channel  Islands  (Audit)  Limited Chartered  Accountants

Jersey,  C.I.

24  April  2024

STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2023

Statement of Total Comprehensive Income

There are no differences between the (deficit) / surplus for the financial years stated above and total comprehensive income.

The notes on pages 45 to 52 form an integral part of these financial statements.

STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2023

The financial statements on pages 39 to 52 were approved on 23 April 2024 and authorised for issue by the Members and signed on their behalf by:

............................................................. ............................................................. Stephanie Liston  Tim Ringsdore

Chair CEO

23 April 2024 23 April 2024

The notes on pages 45 to 52 form an integral part of these financial statements.

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

1. Authority Information

The Jersey Competition Regulatory Authority (the Authority) is established by way of the Competition Regulatory Authority (Jersey) Law 2001, with further functions and legal duties relating to competition law and economic regulation set out in the legislation passed by the States of Jersey, to which the Authority is ultimately accountable.

The principal place of business is 2nd Floor Salisbury House, 1-9 Union Street, St Helier, Jersey, JE2 3RF.

2. Accounting Policies

These financial statements have been prepared in accordance with FRS 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland.

The presentation currency of these financial statements is sterling with all amounts rounded to the nearest whole pound.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Members to exercise judgement in applying the accounting policies.

The Authority has adopted the provisions of FRS 102.1A as it relates to small entities. The following principal accounting policies have been consistently applied:

1. Income

  Income is received from Government grants and other charges raised in respect of the Authority s responsibilities

as the administrator and enforcer of Jersey s competition law and through fees raised through the licensing regime in place for certain sectors. Further details are given below:

1. Grants and other charges

Grants received are of a revenue nature and are recognised, in accordance with the Accrual model of FRS 102 Section 24, in the statement of comprehensive income in the period in which they are receivable which is expected to relate to the costs for which the grant is intended to compensate. There are no performance obligations attached to the grants provided.

The grant for 2023 was £747,000 (2022: £747,000). This is in line with the 2021-2023 Funding Agreement between the Authority and the Minister for Sustainable Economic Development (the Minister), in order to support the Authority s 2023 Business Plan. Any unused funds at the financial year end are either held by the Authority for application against future cases or repaid to the Minister s Department.

2. Merger Fees

Mergers and acquisitions fees comprises fees received for the assessment of certain notifiable mergers and acquisitions in the year. An application for approval of a merger will not be registered unless the relevant fee has been paid in full, and a second detailed review will not commence until receipt of any further fee payable. The fee for a first detailed review depends on the fair market value (the FMV) of the total consideration received by the seller(s) for the merger, including the assumption of any liabilities whether actual or contingent. The Authority may also recover any additional reasonable fees or costs in connection with the application, whether or not it is successful. The fees are recognised in the statement of comprehensive income once the proposed transaction has been formally registered with the Authority.

If a second detailed review is required, then a further fee is payable in advance, regardless of the transaction s FMV. The resources required to conduct the review of the application are assessed, and the parties are advised of the estimated fee at the commencement of the second detailed review of the assessment.

3. Licence fees

Licence fees across all regulated sectors are set in accordance with sector-specific legislation and are recognised in the period to which they relate. Licence fees are charged either by applying a percentage to the licensed revenue of each licensed operator (in the case of telecoms) or through charging an annual fee (in the cases of ports and post). Licence fee percentages / charges are set out below:

4. Strategic Postal Review

The Authority began the Strategic Review of Postal Services in 2022, for which funding of £140,000 was received. Income is recognised when associated costs are incurred and the Review is due to be completed in 2024.

5. Telecommunications Security Framework

The Authority began the Telecommunications Security Framework project in 2022, receiving £150,000 Government funding in 2021, and a further £150,000 in 2022. The £300,000 income is recognised when associated costs are incurred throughout the project.

6. Telecommunications 5G submission fees

In January 2023, the Authority announced the outcome of the 5G Spectrum Award invitation to tender process, which was to recommend that Ofcom issues Full Service spectrum licences to JT and Sure. A submission fee of £60,000 each was paid by both operators, and recognised in 2023 following their successful applications.

7. 999 Liaison Committee

In 2023, the Authority, together with the support of Justice and Home Affairs, established a 999 Liaison Committee to provide technical and operational oversight of the Island s public emergency call service. The Authority received a £15,000 contribution from the Government to facilitate this.

2. Expenditure  

  Expenditure is accounted for on an accruals basis and is measured at its transaction price.

3. Leasing Commitments

  All leases entered into by the Authority are operating leases. Rentals payable under operating leases are

charged in the statement of comprehensive income on a straight line basis over the lease term.

4. Pension Costs

  Since January 2023 the Authority has operated a defined contribution pension plan for the benefit of its

employees. Contributions are recognised as an expense in the Statement of Comprehensive Income in the period as employees provide service, in accordance with the rules of the plan. Amounts due but unpaid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Authority in independently administered funds.

  The Authority historically provided a defined contribution pension scheme (the Public Employees Contributory

Retirement Scheme) to some of its employees, however this scheme has been closed to new employees for a significant period of time and there are currently no employees who are members of this or any pension scheme. The Authority is not liable for any deficit in this scheme.

5. Fixed assets

  Fixed assets are stated at cost less depreciation. Depreciation is provided on all fixed assets at rates calculated

to write down their cost on a straight line basis to their estimated residual values over their expected useful economic lives. The depreciation rates used are as follows:

  Assets residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if

appropriate, if there is an indication of a significant change since the last reporting date.

  Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are

recognised within other operating income in the statement of comprehensive income.

6. Cash and cash equivalents

  Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on

notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

7. Taxation

  Article 16 of the Competition Regulatory Authority (Jersey) Law 2001 provides that the income of the Authority

shall not be liable to income tax under the Income Tax (Jersey) Law 1961.

8. Going Concern

  The Authority is established by law to monitor the fairness of competition in the Island of Jersey and its ability

to raise the funds necessary to do that, either from Government of by way of licence fees from the regulated sectors, is defined in the same law. Until the Government decides to change that law the going concern status of the Authority is assured.

3. Judgements in applying accounting policies and key sources of estimation uncertainty

In the application of the Authority s accounting policies, which are described in note 1, the Members are required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. The estimates and underlying assumptions are reviewed on an ongoing basis. The critical judgements made by management that have a significant effect on the amounts recognised in the financial statements are described below:

 Determined whether leases entered into by the Authority as a lessee are operating or finance leases. These

decisions depend on an assessment of whether the risks and rewards of ownership have been transferred from the lessor to the lessee on a lease by lease basis.

 Determined whether there are indicators of impairment of the Authority s fixed assets. Factors taken into

consideration in reaching such a decision include the economic viability and expected future performance of the asset.

Key sources of estimation uncertainty:

 Tangible fixed assets (see note 5) are depreciated over their useful lives taking into account residual values,

where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In reassessing asset lives, factors such as technological innovation, product life cycles and maintenance programs are taken into account.

Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.

4. Other Operating Income

During 2023 the Authority placed funds in a treasury deposit account for fixed terms throughout the year.

5. Fixed Assets