A case for regulatory review
THE path of utility regulation in Guernsey has rarely run smoothly. Over more than 20 years since regulation was introduced, at least one regulated sector has been in dispute with the regulator at any given time, whether that be the Office of Utility Regulation, the CI Competition and Regulatory Authority, or its successor, the GCRA.
Ongoing disputes notwithstanding, the regulator may now find itself at an all-time low, struggling to hold on to relevance and credibility in the wake of an uncommunicated entanglement with its Jersey equivalent over the takeover of Airtel-Vodafone by Sure.
The Economic Development Committee has left the GCRA doubly exposed, first in attempting to bypass its competition objections to the deal, and then, when finding its route blocked by competitive concerns from the Jersey regulatory counterpart, openly voicing the possibility of seeking to revert to a CI regulator model.
With the Sure-Airtel deal now shrouded in uncertainty, and the regulator’s future heading the same way, it’s an uncomfortable time for competition regulation.
Why Jersey scrapped the CI model is still a mystery. But rather than simply fall back into their arms, it’s an opportunity to step back and consider all the whys and wherefores of competition regulation in our tiny markets, and the best way to move forward.