Last week, after talks between the firm and the government failed to resolve the issue, the gas company announced it would be implementing a 6.5% increase to cover shortfalls in company revenue due to the Covid-19 crisis, with some accusing the firm of holding consumers and the government to ransom.
Economic Development Minister Lyndon Farnham said that vital financial information had not been provided in order to assess what level of support could be given, and he said the government was prepared to take action against the price rise under the Jersey Gas Company Law 1989. However, the minister said discussions were still ongoing.
Island Energy Group managing director Ian Plenderleith said it had given the same information as other companies had had to, but was still awaiting a decision as to whether it would receive any financial support.
Mr Plenderleith said the company was in need of short-term funding, but that the government was offering longer-term funding, something that had not been requested.
He said: ‘We have given the Government of Jersey the same detailed financial information, including all historic financial information and forward-looking forecasts, that is required of any business looking for access to the payroll co-funding scheme.
‘We have given the Jersey government more information than we gave to the Guernsey government, where payroll co-funding was given to Guernsey Gas. We have only asked the government for short-term funding in the form of access to the local payroll co-funding scheme in order to stabilise the company during this challenging time and to contribute towards the continuation of a safe and secure supply of gas to homes and businesses across the Island throughout the pandemic and once it is over – we are not looking for long-term funding.
‘However, we have been informed that Jersey Gas is not eligible, and will not be eligible at any point, for the payroll co-funding scheme.
‘In spite of the fact that Jersey Gas’s reduction in sales is far higher than the material detriment criteria in the payroll co-funding scheme and we are a critical service provider, we have been excluded as we are classed as a utility and utilities in Jersey are categorically excluded from access to this support measure.’
Under the government payroll co-funding scheme, firms can apply for up to £1,600 a month of staff salaries covered.
Mr Plenderleith added that the government wanted more detail about companies linked to Jersey Gas, something the firm felt was not appropriate.
He added: ‘Talks did take place on 30 April. At those talks the government offered to look at longer-term funding for Jersey Gas, something we have not requested.
‘To be considered for this they have asked for much more detailed information on other non-Jersey based companies linked to Jersey Gas.
‘It is this information that we have not shared as we do not feel it appropriate given that we do not seek this type of longer-term support. It is with regret that the 6.5 % tariff increase has been implemented.
‘However, we will continue to monitor the situation and will remove, in whole or in part, the temporary increase when the full impact of the pandemic on our finances is better understood.’
