Discussions had stalled but the company’s parent group, Isle of Man-based International Energy Group, has now appointed a new chief executive, David Cruddace, raising the prospect of new talks.
Economic Development Minister Lyndon Farnham has written to Mr Cruddace in an effort to find a solution.
Problems first began in April, when it was revealed that Jersey Gas’ sales had dropped by 45% as hotels and guesthouses – some of the firm’s biggest customers – were forced to close due to the Covid-19 crisis.
The company then applied to enrol onto the government’s co-funding payroll scheme which pays up to 80% of an employee’s salary, to a maximum payment of £1,600 per month.
As utility companies are normally not eligible, Deputy Geoff Southern lodged a proposition calling on Members to add the company to the scheme.
However, the government claimed that IEG and its private-equity fund owners had failed to provide information demonstrating Jersey Gas did not have access to ‘sufficient working capital’ of its own and the proposition was subsequently defeated six votes to 25.
In response, the firm increased its tariffs by 6.5% – a move labelled as ‘insensitive’ by Economic Development Minister Lyndon Farnham. Talks aimed at resolving the issue stalled.
Now, following the replacement of Ian Plenderleith, the previous chief executive of IEG and Jersey Gas, the government has renewed its efforts to find a solution.
In a statement, Senator Farnham said: ‘I share the concerns of Islanders and businesses following the decision by Jersey Gas to increase its tariff by 6.5%. This is an important matter that we would like to resolve on behalf of Jersey customers.
He added: ‘The International Energy Group has now appointed David Cruddace as the new chief executive of Jersey Gas. I have written to Mr Cruddace to welcome him to his role and to suggest an early discussion relating to Jersey Gas and the recent events.’
Jersey Gas declined to comment.
