Calls for compensation and nationalisation as gas woe continues

Tuesday 10 October 2023

Jersey’s gas supply should be nationalised and steadily phased out as an energy source, according to the leader of Reform Jersey.

The gas network first failed on Saturday morning, creating problems for more than 4,000 premises across the island.

While Island Energy previously suggested that premises could start to be reconnected from today, it said last night that this would not be possible.

Some islanders have questioned whether the shutdown should prompt the island to accelerate its pivot towards green energy sources – among them, Deputy Sam Mézec, who queried whether it remained appropriate for Island Energy to continue running privately in this context.

Pictured: Reform Jersey leader Deputy Sam Mézec queried whether it remained appropriate for Island Energy to continue running privately in this context.

“The fact is, this company is doomed. It provides a product and service which the Government has an official policy on to help customers abandon and move to electricity,” he said, referring to the Government’s ‘low-carbon heating incentive’ launched earlier this year.

“As a private company, the directors and shareholders must realise that the game is up. There is no long-term future and the ability to make money will be increasingly limited.

“They could throw in the towel very quickly at short notice and liquidate the company. That could be very disorderly, with lots of households and businesses finding themselves suddenly without gas.

“It seems to be far more sensible to plan for that moment. We either nationalise the company now in order to provide an orderly transition or we do it a panic. It will cost us whatever the outcome.”

In our ‘After Coronavirus - a New Deal for Jersey’ document, Reform Jersey said the gas company ought to be nationalised.

I’m not saying it would be a perfect service if this happened. But something that can cause so much disruption to the Island shouldn’t be run privately. https://t.co/OpuFrN7c0d

— Deputy Sam Mézec (@SamMezecJsy) October 7, 2023

Deputy Mézec added that his party had proposed that the gas company is nationalised in its ‘After Coronavirus – A New Deal for Jersey’ discussion document, but it was not one of its principal manifesto pledges.

He said: “In the short-term, Reform is not going to propose nationalisation now because we don’t want to act in haste, but we need to start asking questions and have a discussion about whether we should facilitate the orderly transition from gas to no gas.

“Also, clearly the Haut de Mont investigation is still ongoing but, whatever the outcome of that, it will likely prompt this debate again when we find out what happened there.”

Pictured: Island Energy Group CEO Jo Cox said that she will "be looking at compensation on a case-by-case basis".

As a private company, Island Energy is unregulated, CEO Jo Cox confirmed to Express yesterday – though there are some Ministerial links and control measures in place via the Jersey Gas Company (Jersey) Law – nor is it obliged to provide compensation like UK providers regulated by Ofgem (the Office of Gas and Electricity Markets).

“Within our terms and conditions for domestic customers, it’s clear that compensation isn't part of those terms and conditions. However, if you’ve been affected, I'll be looking at compensation on a case-by-case basis, okay. A lot of people still have got hot water,” Ms Cox said.

Among the 4,000-plus customers affected were 400 commercial clients – including restaurants which either had to shut or restrict their operations over the weekend. 

Sand Street-based Thai restaurant Spice of Life posted a note in its window saying that it was unable to open, while Café Spice owner Abdul Samad explained that he had to cancel reservations for 82 people due to eat there over the weekend.

Customers of Ofgem-regulated gas companies in the UK whose supply is interrupted unexpectedly are entitled to £60 for the first 24 hours. This amount then increases with time, though the regulator hasn't published exact figures. 

Pictured: Carl Walker of the Consumer Council has called for the local utility company to go “above and beyond” for customers in terms of compensation. (Rob Currie)

Carl Walker of the Consumer Council has called for the local utility company to go “above and beyond” for customers, and at the very least match what is provided in the UK.

"We are going to give Island Energy time to solve the problem," he said. "We would like to see them mirror what everybody would be entitled to in the UK under the Ofgem compensation scheme." 

He added that Jersey Consumer Council were investigating what is included in the average home insurance policy – given that people were unable to cook or shower with warm water.