Deputies criticise Guernsey Electricity directors’ wages

The annual report revealed that in 2021, executive directors were paid a total of £1.08m. In 2018 that number was £0.92m. and in 2019 was £0.93m.

STSB president Peter Roffey said the utility was not financially or economically stable and GE is having to borrow significantly to provide investment to infrastructure.

Deputy David De Lisle questioned how such high pay could be offered to directors despite electricity tariffs increasing by 9% in July.

‘With the rising cost of living, householders will have to tighten their belt, and expect others to do the same and questions how a company that has failed to keep up with the structural integrity with its assets and gone cap in hand to the States for more capital has the audacity to tap itself on the back and give senior management inflated bonuses,’ said Deputy De Lisle.

He suggested the state ownership of Guernsey Electricity could be the solution to making the utility more open and transparent to the people of Guernsey.

Deputy Neil Inder called on the States Trading and Advisory Board to act on the issue of GE director pay.

‘It doesn’t seem to matter what you do in these entities, if you lose money you keep the job and if you gain money you keep the job,’ he said.

‘I’m not sure allowing this to carry on – with £1m. worth of salaries spread across who knows what – it is too much money for very small utilities. Some directors are getting the same amount they would get in the UK.’

Also weighing in on the debate was Deputy Andrea Dudley-Owen, who said the utility must still adhere to the same rigour of governance that other organisations do, despite it being questionable how independent the company is.

‘One thing that stands out is that the role of the CFO in a modern organisation should not be to ensure accounts are prepared to standard, but also be that of a challenger and financial scrutiny of the financial management of the business,’ she said.