P&R concerned at how much electricity strategy might cost
THE senior States committee has raised concerns that the new multi-million pound draft electricity strategy was not fully costed before being put before the Assembly for debate next week.
Policy & Resources yesterday published a letter of comment to the Environment & Infrastructure committee’s strategy, which has a price tag of £1.7bn, of which £630,000 is linked to capital requirements.
P&R has said that States members should be aware they have been presented with loose costings.
‘At this stage, the States is being asked to agree a strategy that is not fully costed.
‘It is not clear where the funding will come from, other than whatever approach is taken the consumer will be expected to bear the brunt of the costs, and the taxpayer will be expected to bear the risk of any borrowing,’ said P&R president Peter Ferbrache.
P&R has also pointed that although the proposed pathway sets a direction for the next phase of work it would not bind the States to anything, including pursuing a new direct cable link with France.
The committee has also highlighted advantages of working with Jersey on the strategy, going as far as a potential merger between Guernsey and Jersey Electricity, primarily for the benefit of resilience of supply, but also for regulation. It believes a Channel Islands approach would lead to ‘a more competitive and sustainable market in the long-term’.
‘It is our view that this may lead to greater resilience in the longer term, better outcomes for customers and on that basis it should be thoroughly explored during this political term,’ said Deputy Ferbrache.
His vice-president, Deputy Mark Helyar, is preparing an amendment to pursue this inter-island work.
P&R is also seeking to take over any work outlined in the strategy which seeks to attract offshore wind developers.
It said it was already working on exploring arrangements for leasing areas of the seabed to potential wind partners and believes it will have finalised arrangements before the end of the political term.
E&I president Lindsay de Sausmarez has said that future electricity spending was projected at £2bn and her committee’s strategy should save at least some £200m.
