Deputy Carolyn Labey has lodged a proposition calling for CICRA to oversee the activities of Jersey Electricity, which she says has a ‘monopoly’ on power generation.
Her proposals also include the scrapping of Jersey Electricity’s plans to charge businesses that use their own electricity generators, such as solar panels and wind turbines.
From 1 November, Jersey Electricity intends to introduce stand-by charges for businesses which use their own generators, with firms to be charged £3.25 each month for each kilowatt generated at peak power, providing it is less than 50 kW.
The level at which generators that produce more energy than this are charged is due to be determined on a case-by-case basis.
In the report accompanying her proposition Deputy Labey says that she sees ‘no justification’ for the introduction of stand-by charges.
It says: ‘I have significant concerns that this charge will reduce commercial investment in renewable technology in the Island and the fledgling renewable industry.
‘It will also ensure that either only JE plc can invest in large-scale renewables, or that Jersey remains tied to importing expensive energy from France.
‘This maintains JE plc’s monopoly on power in the Island and places the Island at risk of significant price rises. In addition, this may have significant impact on employment within the renewable industry.’
The proposition further calls for CICRA to investigate how stand-by charges affect market competitiveness in Jersey.
It adds that, as a shareholder, the States is conflicted in regulating Jersey Electricity and that CICRA should be asked to assume this role.
It says: ‘The energy market in Jersey is unregulated. JE plc are the sole supplier of electricity in Jersey, and have complete control of the electricity grid through their main company or a subsidiary.
‘It is both unacceptable and unwarranted for a publicly-listed for-profit company to have a monopoly on both the production and the supply of electricity without scrutiny …
‘The States of Jersey as shareholder in JE plc. is conflicted in respect of its ability to regulate JE plc. CICRA is both independent and sufficiently established to undertake regulation of the practices of JE plc.’
In her proposition Deputy Labey also requests the Economic Development Minister to table an action plan by 31 March 2018 on how he intends to ‘exploit and facilitate’ the development of the renewable energy sector.
And she calls for Jersey’s electricity laws, which date back to 1937, to be updated in order to open up the debate on renewable energy sources.
The proposition is due to be debated on 31 October.
