THE States should be prepared to nationalise utility companies if it is considered in the public interest to do so, says Consumer Council chairman Alan Breckon.
The Senator said that the States should look at buying back stakes in the JEC and Jersey Water and holding on to its 100% ownership of Jersey Post and Jersey Telecom. He spoke out after a call was made for the States to act to stop the JEC putting up electricity prices by ab-out 25 per cent from 1 January.
Total public ownership should be considered, he said, for all utility businesses if politicians were to decide that they should be strategic assets. Former St Saviour Deputy Lyndon Farnham has written to ex-colleagues asking for an investigation to take place into proposed Jersey Electricity price rises.
The States owns nearly 54 per cent of the JEC and has 86 per cent of the voting rights, despite the company being listed on a London stock market. Senator Breckon (pictured) said that he had felt for a long time that there was a conflict of interest.
Article posted on 31st December, 2008 - 2.55pm
3 Article Comments
How can a 25% increase be justified at a time when oil prices have plummeted to ~ $40/barrel.
The States need to re-baseline their plans on the current market conditions and not those of an over-inflated and bursting bubble mid year.
I challenge them to do something positive to aid everyone in Jersey and reduce electircity, gas and water costs.
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Well i have to say that at this point in time i agree with Senator Alan Breckon.
As the JCRA has not proved that they are controlling the lack of competition and we can clearly see by the lack of introduction of any competition except mobile phones i beleive that the States should (for a short term) buy back all the utilitys and run them as non profit making until the economic situation changes.
Why have a rainy day fund if you are not going to use it. oh sorry forgot about the new carbuncle about to be built on La Collete.
In a time of need the States should spend some of the rainy day fund. nationalise !
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We already have a controlling interest, we already effectively own the JEC as we can tell it what to do. Problem is TLS says we are not to use this power, I thought that was why we kept it in the first place.
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