The Jersey Competition Regulatory Authority has published a Draft Decision on the pricing framework to be applied to Ports of Jersey for the five-year period starting 1 January 2025.
Comments and feedback on the proposed framework are now being sought, before a Final Decision is made in the Autumn.
The Authority is the economic regulator for port operations in Jersey and sets the pricing framework for Ports of Jersey, alongside quality of service standards. The current price control ends in December 2024.
During the next five year price control period Ports of Jersey is proposing to undertake transformational capital investment in Jersey’s air and maritime gateways, to improve ports facilities, services and long term connectivity.
These investments will materially increase the scale of Ports of Jersey’s assets and related costs. The Authority’s approach encourages investment in this critical infrastructure while also protecting consumer interests in respect of future prices for Ports’ services.
The Authority’s Draft Decision sets out a range for the future price control on all services provided by Ports of Jersey from RPI + 0% to RPI + 3%. This is conditional on the schedule and level of investments proposed by Ports of Jersey.
The proposed pricing framework provides for regulatory certainty, enabling Ports of Jersey to meet and self-fund capital requirements. It also incentivises Ports to progress its current plans, which will of course be subject to the risks and uncertainties typical of large infrastructure projects.
The framework has been developed in the context of heightened economic uncertainty, with high inflation and ongoing cost of living pressures. These and other potential challenges have been considered by the Authority within its Draft Decision.
Ports of Jersey’s development plans have received Government approval but remain subject to Planning consent. The Draft Decision explains regulatory options and the potential approach in the event of a material delay to the project, or if there are material changes to major project components such as capital expenditure.
Tim Ringsdore, Chief Executive Officer at the Authority 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.”
