The Jersey Competition Regulatory Authority has published its final report on the electricity market in Jersey.
The report indicates that current market outcomes, such as price levels and price stability, compare well to other jurisdictions. In terms of efficiency, Jersey Electricity performs well when compared to similar organisations in Great Britain and elsewhere.
The report does, however, draw attention to the absence of competition in Jersey, and sets out views on the existing and future challenges facing this market. For instance, increased investment, changes to wholesale supply and decarbonisation initiatives could result in future price increases.
The Authority is making two short-term recommendations for Jersey Electricity to: improve consumers choice and ability to easily switch between tariffs to manage their own costs; and enable access to Jersey Electricity’s network to support more self and distributed generation.
The Authority is also making two longer-term recommendations. First, the Government’s existing energy policy may require further refinement to achieve its net zero goals, while ensuring the Island’s security of supply and safeguarding affordability. Supporting this, the Authority will also undertake a further review of the electricity market in three to five years to capture the impact of market developments.
Commenting on the study, Tim Ringsdore, Chief Executive of the Authority said: “The study shows that Jersey’s electricity prices compare well relative to other jurisdictions, but the sector faces ongoing challenges and uncertainty. We have set out forward-looking recommendations to improve consumer outcomes and help reduce market uncertainty, and look forward to seeing these being taken forward. We will monitor developments in this market and this will support our future review of the market.”
