States wants to end regulation of post and electricity services

The move, proposed by Treasury and Resources and Commerce and Employment, would see the Channel Islands Competition and Regulation Authorities no longer having oversight over the two States-owned entities – resulting in it losing around £82,000 a year in licensing fees.

The regulator has warned against the move for a raft of reasons, including that it would 'almost certainly' have to increase the percentage used to set annual licence fees in the telecoms sector.

The States report, contained in the March Billet, follows the signing of a Memoranda of Understanding (MoU) between Treasury, the sole shareholder of Guernsey Electricity and Guernsey Post, with the two companies.

As part of the removal of independent regulation, it is proposed that T&R expands and strengthens its role and capability as sole shareholder, taking a more active role through its supervisory sub-committee.

The committee, established in 2013 for Guernsey Electricity, Guernsey Post, Aurigny and Jamesco 750 (the company owned by the States to manage the island's fuel tank ships), would have responsibility for overseeing all of the States trading companies.

The four companies would fund the cost of the sub-committee's operation through an annual levy charged to them.