Earlier this year, the Channel Islands Competition and Regulatory Authorities took ATF Fuels to court, claiming they had abused their position in the marketplace. The regulator chose not to appeal after losing in the Royal Court, arguing that to do so would risk substantial legal costs paid for by taxpayers.
Now, Michael O’Higgins, the body’s chairman, has described the outcome as disappointing and admitted that the case put CICRA in the spotlight.
Writing in the organisation’s annual report, he said: ‘CICRA has received some intense criticism as to its role and effectiveness. This has made clear that broad understanding of CICRA’s role and responsibilities needs to improve and that the organisation needs a greater focus on stakeholder communications.’
As part of a package of measures to learn from the case, non-executive directors from the board will now review decisions by auditing documents and interviewing staff within the regulator, as well as senior representatives of businesses that are investigated.
He added: ‘I do not take the view that we need to remain distant from the bodies we regulate. Instead, I believe that the better we understand each other, the better we will be able to regulate in a way that benefits consumers while also ensuring that regulated entities can invest and grow to the benefit of people and economies in the islands.’
Meanwhile, CICRA’s chief executive, Michael Byrne, has also announced a review of the way decisions are appealed against in future to avoid unnecessary costly court cases.
Mr Byrne said: ‘There are several features of the appeal process we will be looking to review with the States of Jersey to ensure the process of competition can be protected going forward.’
Defending the role of the regulator, he added: ‘The direct benefit to consumers of several cases undertaken since the introduction of competition law across the Channel Islands is well in excess of £30m. Indications are that the indirect benefits of interventions are even greater, as firms desist from certain behaviour voluntarily and adopt business practices that present less risk of contravening the competition law.’
The news comes as the finances for CICRA are published.
They show both Mr Byrne and director Louise Read received pay freezes in 2017. Mr Byrne was paid £165,000 last year. Ms Read received £109,282. That cost was split evenly between Guernsey and Jersey.
The majority of CICRA’s income comes from fees paid by the utilities and companies it regulates, as well as government funding, including £507,059 from the States in 2017.
Earlier this week, the regulator confirmed it was dropping an investigation into the franchising agreement between the airlines Blue Islands and Flybe, adding it is dealing with ‘higher priority’ issues.
It also announced it was continuing to look into the proposed take over of the Boat House and Farm House restaurants by the brewery Randalls amid concerns the deal could harm competition.
