£1.9m. paid by Electricity in regulation since 2010
GUERNSEY ELECTRICITY has paid out more than £1.9m. in regulatory costs over the last five years.
The figure splits down to external costs of £1.329m. and internal costs of £607,000. Internal costs are those incurred through preparing documents for the regulator and external ones are those directly paid to the regulator, such as fees.
As the States looks toward ending the independent management oversight of the utility it owns, GE accounts show the scale of the costs it has faced since 2010 from the Channel Islands Competition and Regulatory Authorities.
Accounts for the electricity company show that in 2010 it paid £342,000 for external regulation, £423,000 the year after and £360,000 in 2012. That amount more than halved in 2013 to £129,000 in 2014 and was even lower last year, at £75,000.
A spokeswoman for the company said it understood the value of being held to account.
'While Guernsey Electricity is a commercial operation, we are also a state-owned utility with a monopoly arrangement to supply electricity to islanders.
'Therefore, we understand there will always be a need for the States to oversee our operation and to ensure that the company is being run in the best interests of the island. The States has a duty to ensure that it implements that scrutiny in the most cost-effective way possible and whether that is a regulator or scrutiny committee, we are always happy to co-operate, provided it is appropriate and proportionate and does not disadvantage customers.'
