Electricity debate “a pivotal moment” for Jersey’s future energy

Tuesday 10 October 2017

Today’s States debate into whether Jersey Electricity should be allowed to impose a controversial new charge on customers using ‘green’ energy is a “pivotal moment” to decide Jersey’s energy future, a renewables expert has said.

If allowed to go ahead, the ‘stand-by charge’ could see commercial customers who generate their own power, but use JEC as a back-up when they cannot produce enough, lose up to 23% of savings made by using eco-friendly energy.

Deputy Carolyn Labey is now calling for an end to that charge, and for the JEC to be regulated, arguing that it appears to be intended to crush competition from renewable energy providers and allow the company to keep its monopoly.

Her proposals are due to be debated in the States Assembly sitting today - one day after Treasury Minister Senator Alan Maclean, who has responsibility for the States’ 68% share in JEC, held a meeting with States Members on the issue.

Pictured: Deputy Carolyn Labey wants the 'stand-by charge' to be scrapped.

The company argues that the change in demand will force them to push up prices for those that cannot afford renewable energy and continue to use them as their sole source - but Sunworks’ Mark Brandon said that his industry was being used as a “scapegoat.”

“That’s a business decision for the JEC whether they choose to absorb that cost or pass that cost onto their customers – the way I see it, there’s infrastructure costs to everything. The new substation is £17million, for example - that’s no small cost to a business,” he explained.

Following the results of the recent ‘Shaping Our Future Survey’ which saw islanders identify the island’s worst performance areas as ‘Jersey is managing the threats posed by climate change’ and ‘Jersey has secure, affordable and sustainable energy’, Mr Brandon proposes resetting the island’s relationship with the JEC and driving forward a greener agenda. This, he argued, could even be achieved without the cost associated with greater regulation. 

Alluding to the EU’s Energy Directive that sets rules for 20% of all energy to be green by 2020, he told Express: “What we would like is for the Council of Ministers to consider that this is a pivotal moment to discuss what kind of energy mix we want on the island… If you think about the way that Jersey looks to the EU or the larger jurisdictions, they’re not part of them, but certainly with finance they look to them for those regulations. Why can’t we achieve that in energy? We’re not talking about low-carbon energy, we’re talking about renewable energy.”

Such dedication to renewables could also play into Jersey’s digital testbed ambitions and even see it rise to the ranks of a “centre of cleantech” given the rise of electric cars and increased amounts of new-builds already incorporating renewable energy into their design, he said. This could also be key to attracting cleantech funds of the future to do business on  the island, he added.

But he says that the government will have to push JEC to be “more creative” in embracing renewables such as sun, wind and tidal power without incurring so many costs. One such route could be through a ‘green energy tariff’. The idea was already put forward in the Energy Pathway 2050 plan and meant to be implemented by 2014 - something that Mr Brandon said “disappointed” the industry.

He’s now appealing for the 1937 Electricity Law to be rewritten for the modern day - “We would urge the ministers to consider the wider picture and the energy future we want for Jersey.”