With ministerial confidence in the body waning and one backbencher amending a proposition to avoid the problems being used as an excuse not to review the renewable energy market, the JEP has learned that CICRA is considering appealing against the latest Royal Court decision in the case. The Chief Minister’s Department confirmed that the case involving CICRA and ATF Fuels remains ‘active’ and that CICRA is considering an appeal.
It added that as a result it was not yet possible to arrive at a final cost for the legal action but confirmed that the States, which provides an annual grant of around £500,000 to the Jersey Competition Regulatory Authority, that makes up CICRA along with its Guernsey counterpart, could top up funding where appropriate, including to cover litigation costs.
‘It is not yet possible to arrive at a final cost as the case remains active and there is still the possibility of an appeal,’ it said in a statement.
However, Senator Philip Ozouf, who has said he intends to lodge a vote of no confidence in the board of CICRA following the ATF Fuels judgment, said that the court case will have cost taxpayers around £1 million already.
‘They have spent a million pounds of taxpayers’ money on fighting this case and they [ATF Fuels] will get costs,’ he said.
In November the States refused to provide information about the cost of the court case to date following a Freedom of Information request from this newspaper.
The reasons for the refusal included that legal fees should remain confidential between clients and lawyers and that it could hinder competition if other law firms are able to work out from the information how much another company is charging.
In the States last week Chief Minister Ian Gorst said that the Royal Court judgment could lead to a review of how CICRA operates and the Island’s competition laws.
CICRA ruled in March 2016 that ATF had abused its dominant market position by charging higher prices for aviation fuel for some customers than others. But the decision was overturned, following an appeal, in the Royal Court earlier this month. ATF, which was praised by the Royal Court for helping to bring down prices in the aviation and heating fuel markets, then called for a review of the purpose and approach of CICRA.
Senator Ozouf, a long-term champion of competition regulation in the Island and the politician responsible for setting up the JCRA, asked the Chief Minister to explain to States Members what action he was taking to deal with the ‘consequences of the judgment’.
‘It is right that ministers do not interfere with the regulator or the regulator’s decision. But in the light of court judgments and decisions of the court, ministers must consider what the implications are, not only for the regulator but also for whether the law is fit for purpose going forward,’ he said.
Meanwhile, the apparent loss of ministerial confidence in the watchdog has led to Deputy Carolyn Labey amending proposals calling for CICRA to carry out investigations in the renewable energy market.
She had proposed that the watchdog investigate proposed ‘stand-by’ charges on businesses which generate their own power and the impact of the levies on the competitiveness of the renewable energy sector.
The proposals, which were intended to help establish a ‘level playing field’ for renewable sources in the energy sector, also called for CICRA to become the economic regulator of the Jersey Electricity Company.
But Deputy Labey has now changed the wording of her proposals so that CICRA ‘or any other qualified body’ could be appointed to carry out the work.
She said: ‘If the Council of Ministers have lost confidence in CICRA than I don’t want them to use that as an excuse for blocking my proposition.
‘I have suggested the names of some organisations which I know are very competent and could do the job instead of CICRA.’
