Whether the Minister will use his powers under the Competition Regulatory Authority (Jersey) Law 2007 to request that the JCRA investigate the level of water rates and charges of the Jersey New Waterworks Company Limited

1240/5(4932)

WRITTEN QUESTION TO THE MINISTER FOR ECONOMIC DEVELOPMENT BY DEPUTY G.P. SOUTHERN OF ST. HELIER

ANSWER TO BE TABLED ON TUESDAY 17th NOVEMBER 2009

Question

"Will the Minister use his powers under Article 6(4) of the Competition Regulatory Authority (Jersey) Law 2007, to request the Jersey Competition Regulatory Authority to investigate the level of water rates and charges of the Jersey New Waterworks Company Limited and to satisfy  himself that the level of profits produced by its monopoly position is appropriate?"

Answer

Article 6 of the Competition Regulatory Authority (Jersey) Law 2001 states: ARTICLE 6

Functions

1. The Authority shall have such functions as are conferred onitbyorunder this or any otherLawor any other enactment.
2. TheAuthoritymay recognize or establish, orassist or encourage the establishment of,bodies that have expertise in, orrepresentpersons having interests in,any matter concerningcompetition,monopolies, utilities or any matter connected with the provision ofgoodsor services to which the Authority'sfunctionsrelate.
3. The functions ofthose bodies shall include one ormoreof the following -
   1. the provision to the Authorityof advice, information andproposalsin relation to any oneormoreof those matters;
   2. therepresentationof the viewsof any oneor more ofthosepersons.
4. The Authority may,on request by the Committee, provide the Committee with reports, advice, assistance and information inrelationto any matter referred to inparagraph (2).
5. TheAuthorityshall have power to do anything that is calculated to facilitate, or is incidental orconduciveto, the performance of any of its functions.

This allows the Economic Development Minister to request the JCRA to undertake investigations if the Minister feels there has been, or potentially could be, a breach of the Competition (Jersey) Law – 2005. Such matters include competition, monopolies, utilities or any matter connected with the provision of goods or services to which the Authority's functions relate.

As Economic Development Minister I can only sanction a request under Article 6(4) of the Law if I have reason to suspect such a breach has, or potentially could have occurred. As I have received no complaints over the last 12 months from customers of the Jersey New Water Works Company, I have no grounds to sanction a request under Article 6(4) of the Law.

In addition, investigations can be undertaken by JCRA itself through the Competition Law 2005. Such investigations do not need any ministerial sanction or involvement. The JCRA has not received any complaints regarding Jersey Water in the past 12 months, and has therefore not instigated any investigations.

Should the Deputy be in receipt of any I would encourage him to pass them on to the JCRA so that they can be

properly assessed.