The supply of electricity in Jersey will be reviewed by the Jersey Competition Regulatory Authority, in the latest in a series of Authority market studies.
The efficiency of electricity supply in Jersey will be a key focus of the study. The study will also consider market characteristics and comparative data, as well as reviewing current and future market developments and their impact on competition. Overall it will assess whether recommendations can be made to improve
competition and consumer outcomes.
In particular, the study will consider:
- the efficiency of electricity supply in Jersey, taking into account the resilience of supply;
- market characteristics, including consumer demand, market structure and market outcomes;
- comparative data and findings from the previous market study carried out by the Authority; and
- features of the electricity market, including investment in renewables and alternative generation, which potentially impact present and future competition.
The study will also take into consideration the previous study of the market that the Authority carried out in 2012.
Peter Hetherington (pictured), the Authority’s Chief Economist, said: “Electricity is an unavoidable household expense and a substantial portion of household expenditure. We are very aware that, in the current economic climate, there is significant pressure on household budgets, and it is appropriate that we take a closer look at this market to consider if it is working well for consumers. The Authority last reviewed the market in 2012. This study is being launched in the context of the continuing public debate on ‘cost of living’ as well as alongside Government of Jersey’s drive for decarbonisation.”
A market study is a flexible tool to explore whether a market, or feature of a market, is working well for Jersey consumers. It is important to note that a market study is on the structure and behaviour of the market itself, not the action of any specific business or organisation.
Recent Market Studies conducted by the Authority have included Groceries, School Uniforms, Freight Logistics, Telecoms Retail Pricing and Alcohol Pricing and Promotions.
Formal work on the Electricity Market Study will start in October 2023 and completion is expected by the end of quarter three 2024.