States put a block on JEC’s water takeover

Thursday 7th April 2005, 12:00AM BST.

JERSEY Electricity has been prevented from taking over Jersey Water.

The Finance and Economics Committee, which has the responsibility for the 86%-States-owned shares in Jersey Water, has decided not to allow the electricity provider to buy its fellow utility company.

But there is a possibility that the takeover could one day go ahead, as the sale has only been blocked for the ‘foreseeable future’.

For now, it means that jobs at both companies have been safeguarded after there were concerns that the proposed takeover could cause redundancies.

Finance rejected the bid in principle last night before they had got to the stage of discussing figures.

An independent review of water services in the Island, commissioned by the Finance and Economics Committee, found that ‘no fundamental change to the ownership of Jersey Water should be considered’.

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