The official version of this document can be found via the PDF button.
The below content has been automatically generated from the original PDF and some formatting may have been lost, therefore it should not be relied upon to extract citations or propose amendments.
4.13 Deputy G.C.L. Baudains of the Minister for Treasury and Resources regarding the insurance of Jersey Electricity Company's undersea cables:
Will the Minister, as shareholder representative, advise whether the Jersey Electricity Company's undersea cables are insured?
Senator P.F.C. Ozouf (The Minister for Treasury and Resources):
The 2 existing subsea cables between Jersey and Guernsey and Jersey and France are both insured on commercial terms. The current policy, I am advised, covers damage by third parties, such as a cruise liner dragging an anchor through a cable and causing breakage. J.E.C. (Jersey Electricity Company) holds spare cable, I am advised in Holland, and have a maintenance contract with a third party with access to a repair barge so that any such repairs could be expedited.
- Deputy G.C.L. Baudains:
We know that as a result of the failure of one of the cables electricity had to be supplemented from La Collette, which is more expensive and caused a rise in the cost of electricity, but why was insurance not able to mitigate that problem?
Senator P.F.C. Ozouf :
I think the Deputy is referring to the earlier power outages, when the first cable failed. I think the difficulty with that is, is that that cable has come to the end of its useful life. That is why the J.E.C. for a number of years have been planning the new third cable; the first cable effectively came to the end of its useful life, even though I have to say the J.E.C. did a great deal of work to try and see - because planning permission is required in France - whether that cable could have been replaced but it is just an old cable that unfortunately came to the end of its life.
- Deputy G.C.L. Baudains:
I mentioned a moment ago that the necessary generation at La Collette to take up the slack had caused a rise in the cost of electricity. Could the Minister assure Members that once the new cable is operational the price for electricity will come back down again?
Senator P.F.C. Ozouf :
I was at the Labour Party leader's speech when he announced price freezes, to the consternation of anybody that agrees in a competitive market. I am not about to announce here. We have had debates previously about electricity prices. The J.E.C. are very sensitive to their role as a partly publicly-owned entity. They need to produce a return to their shareholders, which is not only the States of Jersey, and I understand - I have not got immediately to mind - their commitment on prices going forward. Guernsey have a much greater problem. Guernsey did not plan the safe ...
The Bailiff :
I think, Minister, you can probably confine yourself to Jersey.