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A complaint made to Guernsey's competition watchdog about a proposed increase of up to 45% in the island's mooring fees cannot be assessed – because the island's government is "effectively" the price regulator.
The Guernsey Competition and Regulatory Authority made a statement yesterday afternoon in light of “recent media interest” in the island's ongoing mooring fee debate.
It comes as the States of Guernsey's Trading Supervisory Board decided to press ahead with inflation busting fee hikes at the ports.
The island's mooring fees are set to increase by between 12 and 45% depending on the size of the vessel.
The biggest are those aimed at private boat owners, but they hit every facet of the operations including air passengers, freight handling and cargo shipments.
Indeed, a Condor Ferries statement hinted that one of the factors behind their proposed 19% freight price hike is "significantly above-inflation rises in some port costs and other fees, which in some cases are between 18% to 35%".
Guernsey Ports blamed their planned mooring fee increase on four years of losses triggered by covid and a drop in visitor numbers, with the company forecasting a loss of £6million this year.
Pictured: Guernsey's mooring fees are set to increase by between 12 and 45% depending on the size of the vessel.
Following the announcement, the Guernsey Boatowner’s Association (GBA) reached out to the Guernsey Competition and Regulatory Authority as a last-ditch attempt to stop the potential increase.
But in a statement today, the Competition and Regulatory Authority explained that the "States of Guernsey has reserved price setting powers to itself in respect to Guernsey Ports, and as such is effectively the price regulator for Guernsey Ports".
"Competition law is not intended to override the ability of the States to exercise these price setting powers," they added.
The full statement explained: "The Guernsey Competition & Regulatory Authority (GCRA) has received a complaint regarding a proposed increase in mooring fees levied at some Guernsey harbours and, considering recent media interest in the issue, wishes to make the regulatory position clear.
"The level of mooring fees in some Guernsey harbours is set to rise by up to 45% and boat owners have made a complaint to the GCRA under the Guernsey Competition Law about the size of this increase.
"Competition law applies to sectors where in principle, market forces are free to operate. The GCRA may in certain circumstances intervene to prevent dominant businesses from charging customers excessive prices.
"Guernsey Ports does not have the legal power to set its own mooring fees. The States of Guernsey has reserved price setting powers to itself in respect to Guernsey Ports, and as such is effectively the price regulator for Guernsey Ports. Competition law is not intended to override the ability of the States to exercise these price setting powers."
Pictured: Condor outlined plans to increase freight prices by inflation plus 10%, resulting in a total increase of 18.76% from 1 January 2024.
Michael Byrne, GCRA CEO added: “The GCRA can only act using powers given to it by the States of Guernsey.
"The legal powers of the GCRA do not extend to circumstances where the States of Guernsey has removed sectors of the economy – such as airlines or the dairy industry – from the scope of competition law, or where it has reserved powers to itself – such as the price setting powers in this case.
"The GCRA’s powers therefore do not extend to assessing a competition law complaint in respect to mooring fees.”
Ports of Jersey announced an 11.1% rise in fees at the Harbour and the Airport in the new year.
This is the maximum amount that Ports of Jersey can increase its fees by – Jersey's recently published 10.1% inflation rate plus 1% – under rules set by local competition watchdog the Jersey Competition Regulations Authority.
Condor signed an agreement with Jersey’s Harbourmaster in 2014 which, in essence, gave the company an exclusive ramp licence to run Roll-on, Roll-off services in return for a guaranteed level of service, including types of vessels, pricing and timetables.
The decade-long agreement does not prohibit other operators entering the market, but they would have to provide the same level of service as that set out in its 80 pages – setting a high barrier to overcome.
The current 10-year deal between the Government and Condor is in its ‘winding down’ phase, with a new agreement on such matters as capacity and frequency due to be signed before July 2025.
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