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The Channel Islands' competition and regulatory watchdog is "anticipating applications for tariff increases" from Guernsey Electricity in 2020.
The Channel Islands Competition and Regulatory Authority (CICRA) made the statement in its work programme for next year, which it has issued today following consultation with stakeholders.
Guernsey Electricity's tariff went up by 6.8% in July, which was supposed to be for a period of three years, in order to "recover uncontrollable costs related to importation and generation of electricity, which are primarily related to the price of oil and exchange rate movements" between April 2017 to March 2019.
That increase was unrelated to work that has been undertaken to replace the £30m. replacement electricity cable, and Cicra's comments add further weight to the likelihood of another price rise application in the next 12 months.
"In November it circulated draft work programmes and asked stakeholders for views and having considered those it has now published the areas it will prioritise over 2020," said the regulator's media release.
"As well as its competition enforcement role and oversight of notifiable mergers, it intends to continue its successful seminar programme as part of its advocacy initiative. This aims to avoid unnecessary contraventions by helping businesses understand their legal obligations as well as assist them in spotting anti-competitive behaviour.
"In telecoms, supporting the islands' path to next generation connectivity and establishing a fairer playing field for competitors feature strongly in its priorities. In electricity, it will rely on the forthcoming energy policy informing its priorities and anticipates applications for tariff increases from GEL. It expects to maintain more of a watching brief over airport and harbours in Jersey given the recently concluded five-year price control and expects a similar role in post."
Pictured: Guernsey Electricity new undersea cable being laid in Havelet Bay earlier this year.
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