SOME Ports of Jersey prices may rise by up to 3% above the retail price index annually following a draft pricing decision issued by the Jersey Competition Regulatory Authority.
The decision, which comes into force for a five-year period from January next year, has been published in draft to allow comments and feedback before it is made final later this year.
As economic regulator for port operations in Jersey, the JCRA sets the pricing framework for Ports alongside quality of service standards. The current price control, which allows an increase of 1% above RPI, ends in December 2024.
A statement from the JCRA notes that over the next five-year period, Ports of Jersey is proposing to undertake “transformational capital investment” in Jersey’s air and maritime gateways to improve facilities, services and long-term connectivity. It argues that the draft pricing schedule encourages investment in critical infrastructure while protecting consumer interests.
Price rises are conditional on the schedule and level of investments proposed by Ports of Jersey, and the JCRA says the proposed pricing framework provides for regulatory certainty, enabling Ports to meet and self-fund capital requirements, while also providing an incentive to progress its current plans, which are subject to the risks and uncertainties typical of large infrastructure projects.
The report adds that the framework has been developed in the context of heightened economic uncertainty, with high inflation and ongoing cost-of-living pressures which have been considered by the authority within its draft decision.
Although the proposed capital investment has received government approval, it remains subject to Planning consent, and the draft decision explains regulatory options and the potential approach in the event of a material delay to the project, or significant change to its content.
JCRA chief executive Tim Ringsdore said: “We have taken a pragmatic and flexible approach to this review. Consistent with the government’s Ports Policy Framework, our approach is designed to balance the facilitation and recovery of capital investment, with the need to protect and further the interests of all current and future Ports users. Ports services are integral to the Island economy and we would urge stakeholders to use this opportunity to give feedback on the draft decision.”
The draft decision is published on the authority’s website – jcra.je – and responses are due by 2 August. They can be emailed to info@jcra.je.
