Top-level meetings over the cost of gas called for

A £25,000 States-commissioned report into Jersey Gas, which was released this morning, found that the States should not be attempting to regulate gas prices.

However, Assistant Chief Minister Philip Ozouf, who has responsibility for competition, said that gas prices in the Island are high compared to other fuels and that Islanders need to be given accessible and comparative information on energy costs.

He is now keen to meet the Channel Island Competition and Regulatory Authorities, the Jersey Consumer Council and senior representatives from Jersey Gas to see what options are available for reducing the gap between gas, electricity and oil prices.

The report, written by economic consultancy firm Oxera, found that while retail prices had not declined as sharply as wholesale prices in recent years, the gap between retail and wholesale gas prices can be partially explained by declining volumes of sales.

It found that the company’s profit levels were within a reasonable range and that prices were not too high.

Full report in Wednesday’s JEP.

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