- Call for more controls after gas price drops 3.5%
- States reject proposition for States to be able to vary gas prices according to the Jersey Competition Regulatory Authority
- The authority is currently carrying out a review of gas prices
- See the results of a JEP poll below
CALLS to review gas tariffs in the wake of a 3.5 per cent drop in prices have been rejected by the States.
A proposition lodged by St Helier Deputy Geoff Southern requested that regulations be brought forward to allow the States to vary gas prices according to recommendations made by the Jersey Competition Regulatory Authority, which is currently carrying out a review of gas prices.
Earlier this year, Jersey Gas announced a 3.5 per cent drop in tariffs, prompting Deputy Southern to withdraw an earlier proposition calling for a five per cent reduction.
However, the Deputy said that 3.5 per cent was probably at the ‘low end’ of what could be done.
He suggested that the States could set prices even lower once a review by the JCRA was complete.
Deputy Southern said: ‘We can by regulation dictate the price of gas if we wish.
‘We should have some control to say what is acceptable and when it is not acceptable.
‘What we need to do is protect our old folk from gas price rises over the winter months.
‘This proposition says that if we are prepared, then come October we will know what’s going on and have the tools ready to make sure that our voters are protected from potential gas price rises.’
St Brelade Deputy Montfort Tadier added: ‘There seems to be a consensus that gas prices are an issue.
‘This is something we should all be getting behind.’
Rejecting the proposition, Treasury Minister Alan Maclean said that Assistant Chief Minister Philip Ozouf, who has responsibility for competition, had already initiated a review of the gas market.
‘When that review is completed, then a course of action can be taken,’ he said.
‘Obviously this Assembly would not want to see consumers pay above the odds for gas.
‘There may be issues with the gas market which need to be addressed but I would encourage Members to let the review be concluded.’
Chief Minister Ian Gorst also said that there was a ‘need for the competition authority to do their work’ before implementing any regulations.
The proposition was rejected by 30 votes to 13.
FOR
Constable Rennard;
Deputies Martin, Southern, Carolyn Labey, Hilton, Kevin Lewis, Tadier, Higgins, Mézec, Doublet, Russell Labey, Brée and McDonald.
Total: 13.
AGAINST
Senators Routier, Ozouf, Maclean, Gorst, Farnham, Bailhache, Green and Cameron;
Constables Crowcroft, Norman, Refault, Mezbourian, Gallichan, Paddock, Le Troquer, Taylor and Le Sueur;
Deputies Le Fondré, Pryke, Noel, Vallois, Pinel, Bryans, Moore, Rondel, Andrew Lewis, Renouf, Johnson, Truscott and McLinton.
Total: 30.
Today marks a significant victory for people power in Jersey.
In January, Jersey Gas said no to calls in the media and from consumers to cut its prices following a sharp fall in the wholesale price of oil.
The utility company, which is owned by an Australian investment fund, said that it was not possible to change tariffs until at least the end of 2015 because it had already contracted to buy gas for the year at a fixed price. The comments came as UK gas suppliers were announcing price cuts.
Were Jersey consumers yet again being held to ransom by a corporation exploiting a captive market?
Today, Jersey Gas announced that it was reducing prices by 3.5 per cent from next week.
What a difference a couple of months makes. So what changed?
The matter-of-fact press release issued by Jersey Gas this morning certainly offers no help.
The answer is that an Island company has been forced to bow to public and political pressure against a background of price cuts elsewhere.
The Council of Ministers, and in particular Senator Philip Ozouf, have been pressing for a better deal for consumers across the energy sector. Their work has been complemented by backbenchers, including Deputy Geoff Southern, who tabled a proposition calling for the States to exercise its right under Article 93 of the Jersey Gas Company Law to regulate pricing.
This work – together with calls from the JEP, which first highlighted the power of the States to step in, and its readers on the letters pages of the newspaper – has helped to secure an important victory for consumers.
That victory was to get a company quick to say no to consumers to do something in their interests. As far as prices go, it is a small concession. Even after 23 March, Islanders will still be paying too much for their gas.
