Do we need a watchdog for our utility companies?

Our utility companies have free rein to announce a price rise and we have no choice but to swallow it.

We consumers, at the end of the line, cannot take our business elsewhere, and it seems we cannot rely on our States Members to question these constant rises on our behalf.

While it was encouraging to hear the Chief Minister tell his fellow Members in the States last week that his government was looking to update the legislation which covers the Island’s gas supply, he disappointingly stopped short of agreeing to bring forward proposals to introduce independent oversight of our utilities.

This is something we at the Consumer Council have been calling for since Island Energy’s appalling response rate to its 2023 outage and subsequent insulting “goodwill gesture” of £11.56p per household for weeks of disruption.

The Jersey Gas Law has been in existence for many decades and, if memory serves, it allows the States of Jersey to intervene in terms of price control if it feels necessary. We don’t have to look back quite so far to recall that, during the Covid pandemic, the gas company introduced an “emergency and temporary” 25% price rise (which never went away) and has continued to raise prices each year.

And just this month, we have seen prices climb again, with the rise blamed on the same “geopolitical situation” that has seen gas prices go down elsewhere. We’ve also seen steady increases in electricity and water prices.

If the government hasn’t felt that these unchallenged – and in some cases non transparent, and in many cases wallet busting – price rises didn’t warrant using the intervention powers it had under the old Jersey Gas Law, then it seems totally justifiable to ask what the point is of updating the law. A new law may give the government greater powers, but would it ever be brave enough to interfere in the practices of a private business? Would any democratically-elected government?

And what about the other utilities? Can the government truly hold two utility companies that it practically owns to account? Of course not. And imagine the outcry from Island Energy if the government decided to extend its powers. If you love Jersey, you’ll love our subscription plans: Jersey Evening Post DIGITAL What's included: Access to all JEP website exclusive content Access to all Bailiwick Express online exclusive content Weekly curated ‘Best of’ email and force change at the offshore-owned gas company and ignore its own utility companies.

Each time gas prices increase, it isn’t only gas users who suffer. Every restaurant meal goes up in price, every tourist will need to pay more to have hot water on demand in their rooms, and so on. Earlier this month, Jersey Milk added 4p to the cost of a litre of milk, citing electricity and water price increases as one of the drivers.

Be under no illusion: every time one of our utility companies pushes up the price, it impacts almost everything we do and consume. But who is standing up for us, challenging these price rises on our behalf? Investigating and questioning these so called “geopolitical challenges”?

As it stands, our utility companies have free rein to announce a price rise and we have no choice but to swallow it, and then wait for it to impact the rest of life and keep the spiral of cost increases spinning.

We consumers, at the end of the line, cannot take our business elsewhere, and it seems we cannot rely on our States Members to question these constant rises on our behalf.

What Jersey desperately needs is independent oversight of its utilities. A regulator or watchdog which:

• Investigates the reasons for proposed prices increases to ensure they are fair, justified and accurate.

• Has to approve price increases, and which can recommend decreases when appropriate.

• Can demand more transparency for consumers.

• Sets the levels of compensation following outages, and the acceptable timeframes for reconnections.

• Can demand continual reinvestment in the network to ensure safety for all.

If the government of the day felt strongly enough that our telecom industry should be so heavily regulated, then why not our energy companies, particularly as they have no competition?

Like many things in Jersey, the stumbling block could be a conflict of interest. The government currently owns 62% of Jersey Electricity, and is the majority shareholder in Jersey Water too, meaning that if regulation was brought in to look after the interests of Island Energy users, it would also be regulating two large companies which it, in effect, owns. But rather than allow this conflict – perceived or otherwise – to be the problem, it should, in fact, form the basis of the strong argument for regulation.

Yes, establishing a watchdog or regulator will take time, and require States approval, but it would seem from last week’s States sitting that the Chief Minister would be pushing at an open door. As we know, law-drafting and changes in this Island take a generation, so why not start the ball rolling now?

It could be self-funded through a licensing scheme and be backed by legislation to ensure that it had teeth. If there is a lack of appetite in the Island for more regulation, then perhaps the remit of the JCRA could be extended, or we could pick up the phone to UK energy regulator OFGEM to see whether its remit could be extended.

God forbid, we could team up with Guernsey and create a Channel Islands energy watchdog even. Anything is better than nothing.

And we shouldn’t listen to those using the excuse of the set-up costs as a reason not to pursue this. After all, what price do we put on people’s lives?

We just need some common sense applying to get the job done properly and quickly rather than let the government of the hour gradually pick its way through a law change until the issue conveniently falls down a gaping sink hole on the election ring road next year.

First and foremost, we need a fully independent and rapid inspection of our gas, electric and water infrastructure to at least give us all a picture of what state our pipes and cables are in, and what, if any, needs to be spent to bring them up to acceptable levels.

And, at the same time, we need the case for an independent energy watchdog to be made and brought to the States.

In the meantime, and unless someone can come up with a strong enough reason why Jersey should remain one of the few developed nations not to have independent oversight of its utility companies, the Consumer Council will keep banging this drum on behalf of Islanders until someone with common sense takes notice.