Electricity price rise of 9.5% ‘should be reversed in 2015’

JERSEY Electricity should reverse a 9.5 per cent price rise that was introduced to cover power generation costs once a replacement undersea cable to France is installed, according to the industry regulator.

The JEC La Collette power station control room
The JEC La Collette power station control room

JERSEY Electricity should reverse a 9.5 per cent price rise that was introduced to cover power generation costs once a replacement undersea cable to France is installed, according to the industry regulator.

One of two submarine electricity cables to France failed in the middle of this year, leaving the Island reliant on the sole remaining cable and an expensive oil-fuelled power generation plant at La Collette.

Jersey Electricity said that it has been forced to increase tariffs from 1 January next year to help cover the estimated £8 million in additional costs of generating electricity to meet the Island’s demands.

According to Jersey Electricity, Islanders are paying for 75 per cent of the increased costs, while the company is covering a quarter.

The Channel Islands Competition and Regulatory Authorities say that it would be only fair for the firm to remove the 9.5 per cent tariff hike once the new cable to Normandy is operational in 2015.

Comments for: "Electricity price rise of 9.5% ‘should be reversed in 2015’"

JerseyRich

Oh, how generous of them, 2015!!!!!!!

peter price

I'm sure that all will be forgotten about in 2015

Moses

Yeah sure, why would anything ever become cheaper again. It's just to make people stay on the Island and believe all is good, so they keep paying into the pension pot. If more people were to leave the Island, who would pay for an ageing population...............The people will accept minimum wage jobs & think all will be better after the recession but it hasn't even hit yet.

Nathan

Yeah right, like thats going to happen. I won't be surprised if we don't get another price hike in 2014

Andy

LOL believe this and you believe in father christmas....the jec make very good profits which they should put aside for repairs to cables etc without putting up prices anyway...next month the lights and heating go off !!

Mario

I would put money on this not occuring. By then people will likely have forgotten about it as they did the 24% and the 19% rises a few years back.

I would also expect prices to have gone up before then anyway. Fossil fuels are only going one way.

2015? 3 years to replace a cable? Seems an awfully long time to me.

Electroman

Inception, geotechnical and benthic seabed surveys, the French planning process that involves consultation with hundreds of individuals and interest groups and generation of several dossiers and survey reports in a process whose outcome is as as certain as dealing with the Jersey Planning office, procurement, manufacture of a pretty complex marvel of engineering, landside works, subsea installation involving a flotilla of various sea going and amphibious vessels, commissioning and testing.

The whole process takes a lot longer than three years and it's hard work all the way.

I look forward to reading your nice comments about the JECs efforts to keep the lights on and the drop in power bills when everything's hooked up.

Look up the report by the regulator, as soon as the new cable is in, we are off of our reliance on oil again.

Mario

Wasn't the cable expected to have a life expectancy of 20 years? If so why are we well beyond 20 years and still counting?

I'm sure if a cable failure had happened to JT there would have been uproar.

What is this sea bed installation? Are they burying it under the sand or is it just laying on top of it?

P.S. what did you think of the price of electricity going up 19% in Jan 2007 and 24% in Jan 2010?

Electroman

My point was that you are not an expert and that the process you are ranting at is more difficult than popping into Normans to buy an undersea cable.

Ps I thought "crikey, it's still cheaper than the rest of Europe."

C Le Verdic

Mario: 'Are they burying it under the sand or is it just laying on top of it?'

They will probably have to lay it in a trench to protect it from the Granvillards with their scallop dredges and get a diver to lay black and yellow PVC warning tape and cover it all with concrete cable tiles carrying indented lettering warning of the danger of electricity below.

Unless Electroman knows more about it than you or me!

Siemens' seaman

'The whole process takes a lot longer than three years and it’s hard work all the way'

They manufactured and laid a transatlantic telegraph cable in a shorter timescale than that over 100 years ago. Harder work then, too!

In the second World War, PLUTO armoured pipelines based on cable design were laid across the Channel, usually in one day, two years after the idea was conceived.

Now they have better cables, better surveys and better ships. What's keeping them if they really want to do it?

What???

Bad management.

Either JEC has failed to maintain the condition of the cables thus leading to the failures and which they must be held accountable or they have failed to even read the agreement with the supplier which actually are responsible for. If they were smart they would have already included provisions for maintenance and due care in the agreement or maybe a reserve fund. What about insurance/warranty/guarantee have all these options been actioned?

Has JEC fought back the costs? Looked at the alternatives which will secure the future supply long term? Have they simply delayed the cost of the works in a poor attempt at public relations?

Failing all else - in the hard times that each and everyone faces maybe a phased increase would be better than suddenly having huge debts for electricity.

Fact Based Ranter

Read the regulators report. Your findings are wrong and your long term energy policy doesn't stack up either. Fortunately it's guided by professionals and not which way the rants are going on the jep site.

http://www.cicra.gg/_files/121211%20-%20Review%20of%20Jersey%20Electricity%20Sector%20-%20public.pdf

James Wiley

Now correct me if I a wrong, but that 5% return on capital employed is 51% our capital for which the States of Jersey are trustees. Why should we want a 5% return on our own capital at our own expense? I'd rather just keep my own money to start with thanks.

Breach of trust anyone?

That makes no more sense than taxing people to death only to give some of it back to them through benefits because they cannot afford to live.

Only the States of Jersey would imagine that makes any sense.

The management of the JEC and the staff are vastly overpaid and they are in the States pension scheme, meaning that we the ordinary tax payer are being ripped off. UK employees are paid proper rates and are not on civil service pensions.

eh?

That sounds like a rant too.

Where would you magic your cheap electricity from? Narnia?

the thin wallet

believe it when i see it.

meanwhile the shareholders , popped the cork on another bottle of bubbly paid for by the captive audiance.

solar panel on the wish list anyone?

egalitarian

In France, EDF have just benn found to have overcharged their customers 8.8 billion euros. I think we are lucky in comparison as price rises have been greater in the uk as well.

Kimberly

If you think you're lucky dream on. Prices went up everywhere but are still way cheaper + if there was an overcharge, people get their money back. I believe the prices in the UK are also cheaper if you shop around. I'm in Ireland and going with airtricity, can't complain + as thin wallet mentioned you can go with solar panels which most people have across europe (with grants).

Pate Plate

Two points:

1. No competition here so can't shop around;

2. No grants available.

MK2K

You believe wrong then, we're still cheaper than the UK

egalitarian

I believe that EDF aren't giving refunds (French Govt. owned by the way, no competition).

Prices in England are only marginally cheaper in some cases. Jersey is too small to have an alternative supplier, plus the States benefit from the JEC profits as they do not go to non-tax paying foreign companies.

Solar panels may supply cheaper electricity if you don't count the costs of purchase and installation. This situation will be changing soon as the British suppliers are reducing the payment made for your excess electricity which is fed back into the grid.

exJEC

Why is Jersey too small to have an alternative supplier?

I am interested in where you get this information from?

There are 3 Telcos here now, so you would think the same would count for electricity suppliers??

I used to work for them at the Power Station so don't try and baffle me or waffle on. I understand electricity Generation inside out.

Simple Sid

So how does that work? Your putting electricity up now 2012 and then in 2015 your going to reverse the rise? Mmmm

I cannot see how that is going to work when unemployment will proberly be higher than it is now more business's will have gone pop! JEC you need to be careful what you promise.

Advocate

The question which we need to ask is whether the Jersey Electricty Company will be signing an agreement where the company binds itself to honour the promise that it now makes.

My guess, of course, is that such an agreement, which would be a straightforward matter and one which accords with commercial practice, will not occur.

One has to ask why not. If the JEC is sincere in the promise which it makes, then its directors will be happy to sign such an agreement.

Perhaps one of our States members might like to look at putting the above into practice in respect of this quango which the public owns in part.

Warren J

As usual, most of the comments on here are a load of twaddle !

As has been said before prices have not been increased due to the cost of the cable, its the increased cost of generating the electricity !

Back in the early 1980's when the first French cable came on line, electricity prices dropped significantly as the company's dependence on oil declined, and have been kept relatively low when compared to other jurisdictions . Have faith - prices will drop when the new cable comes on line, as has been proven in the past.

noah

In the 80s the Island wasn't as greedy as it is now

noah

over the next 2 years it will increase by 110% so when they reduce it it will look like they are keeping their promise