‘Green power doomed' if regulation is scrapped

Allowing GEL to be overseen by the States’ Trading Supervisory Board, effectively its owner, would create an unfair playing field, the Little Green Energy Company said.

It wants to install solar panels at its own cost on islanders’ homes and business properties to help facilitate Guernsey’s energy policy.

‘We are working towards the island becoming carbon neutral by 2050 while bringing renewable energy to those who cannot afford to buy their own panels,’ it said in a statement.

However, a proposal to be debated by the States next week could jeopardise that.

The reason is Guernsey Electricity’s tariffs and prices are currently regulated by the Guernsey Competition and Regulatory Authority, which is an independent body. Now, the States is being asked if future pricing structures should be decided instead by the STSB.

The Little Green Energy Company questions this possible change, because of the STSB’s relationship with Guernsey Electricity.

‘We believe the net effect of this being voted through would be an unfair playing field, whereby Guernsey Electricity is regulated by its own shareholder and not by an independent regulator,’ it said.

‘Tariffs and prices will be adjusted to make it financially unviable to have independent, renewable electricity generation on the island, not only from our company but others wishing to enter the market.’

Previous statements from GEL indicate it wishes to move from a per unit of electricity model to one based on a 50/50 fixed charge and a variable one linked to electricity use.

That could stop renewable energy companies from installing solar panels at their expense on customer properties and recouping costs by charging for the electricity generated at around the existing tariff rate of 19.78p per unit.

Guernsey Electricity/STSB would also be able to set the so-called feed-in tariff, the amount received for renewable energy fed into GEL’s grid.

‘This would bring the unit cost of electricity so low that it is not economically viable to install renewable systems, but could also increase fuel poverty,’ it said.

‘You’ll pay half of your bill without turning on a light.’

The Little Green Energy Company said the proposed change would be against the interests of consumers.

‘With no independent regulatory oversight there will be less transparency for islanders and more opportunity for hidden costs,’ it said.

‘We want to provide islanders with cheaper, clean, “locally grown” electricity and we respectfully ask deputies to vote against the policy letter, which goes against the interests of islanders and fair competition.’