Sparks fly between Roffey and Inder over Electricity accounts

The debate was dominated by the cost of electricity, with States’ Trading Supervisory Board president Peter Roffey warning of two reasons for ‘inevitable’ price rises – the end of a contract, agreed pre-Ukraine war, with French supplier EDF, and a backlog of necessary investment in infrastructure, caused by GEL being unable to set its own tariffs until recently.

‘I don’t know what the situation will be going forward,’ said Deputy Roffey.

‘I hope that Guernsey households and businesses will continue to be shielded to some extent but the reality is that the days of uber-cheap electricity are almost certainly coming to an end.’

Economic Development president Neil Inder reacted strongly to this warning.

‘I’ve heard nothing about efficiencies,’ he said.

‘All I’ve been told is that the general public in Guernsey will pay and pay and pay.’

He said that STSB was not being open enough about the extent of future price rises and he would continue to pursue the board through written questions.

‘We need some answers.

‘What are you going to cost us? And what are you going to do to make it more efficient?’

Deputy Inder was warned by Bailiff Sir Richard McMahon to speak through him, rather than directly to political colleagues.

Deputy Roffey was robust in response.

‘With the greatest respect to him, I find his exaggerated "Mr Angry" act getting slightly more absurd and risible month by month,’ he said.

Deputy Inder objected but did not wait to be invited to speak by the Bailiff and was rebuked.

‘If he spent a little bit less time getting in a lather and more time reading the material that’s put out, he’ll know that when STSB issued their ruling on the tariff application last time round, they published a full report by an independent set of consultants which was a benchmarking and efficiency review of GEL,’ said Deputy Roffey.

The review showed that GEL was an efficient organisation, he said, but he reassured members that STSB would continue to watch for further efficiencies. But he was reluctant to deliver ‘a running commentary’ on the progress of negotiations for a new contract with a European electricity supplier.

Again Deputy Inder interrupted and was spoken to by the Bailiff.

The accounts for the year ending 30 September 2022 showed a net debt of £36.4m., which Deputy Roffey said was a financial drag on the company, as it mitigated against new borrowing.

He also observed that a review of the GEL board had determined that their base pay was ‘about right’ but that their bonuses were ‘rather too modest to be competitive’.

Deputies Lyndon Trott and John Gollop agreed that non-executive directors’ remuneration was on the low side. Policy & Resources committee president Peter Ferbrache – who was the only member of P&R who voted on the accounts – said the board consisted of ‘first-rate people’ doing a good job.

The accounts were noted by all 33 members present.