Challenge over price of power
Thursday 26th March 2009, 3:00PM GMT.
ELECTRICITY prices could be reduced thanks to an obscure piece of legislation from the 1930s.
Senator Alan Breckon wants to use the Electricity (Jersey) Law 1937 to stop the Jersey Electricity Company from putting up prices at the same time as it increases dividend payments to shareholders.
He has lodged a proposition to reduce electricity prices from July.
JEC prices went up 24 per cent in January, and at the same time the company announced that it was increasing its half-year dividend by 27% from £1.17 to £1.48 per share. The company also saw profits rise by 14% to £10m last year.
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More power to his elbow!
I really hope this law will be enforced, however I fear the States will repeal it just before it could be used!
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Fantastic! Instead of the usual attitude of kicking people when they are down someones doing the the right thing. As for their attitude it is very RBS like isn’t it? Rob from the poor give to the Rich! Its a joke! Wages stay the same, some are getting reduced and people are being released from their roles so lets but up a bill by 25%. I think Jersey needs to get a bit of grip and realise the financially people are doing badly enough over here. Unless you count the lucky millionares that are just gutted that they are not living off the interest on their millions now!
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Good call Senator.
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Well done Senator Breckon, nice to see some one doing their homework.
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i’m with senator breckon on this one
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At last a member of the states that is actually eanring his salary. Well done Senator Breckon can you find a few more useful memebers as we the public are fed up with reading about one disaster after another
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The last time an obscure piece of legislation was used it cost us the waterfront.
I hope this time it works for the people.
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Now this is why he was elected!!
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As the States of Jersey are a 62% shareholder they will have benefited from the dividend.
I’m sure something else will have to rise to make up the shortfall. Its the States of Jersey who have benefited mostly from the dividend payment!
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Well done Mr Breckon, I am sure alot of people wish you the best of luck!!!
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I would tax the rich a bit more and nationalise the JEC. Why pay out money to rich shareholders when it could be ploughed back into the company, or used to lower prices?
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nice one alan
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just had winter bill cant afford to pay it.increase was a joke and well above inflation,and i,m not an old age person either. this greedy island makes me sick!!!!!!!
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thats why they can wait for their bill until my wages increase by 24 per cent too!!
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Has anyone else noticed how the latest Statement of Accounts was calculated this time? the charges went up as of 01/01/09 but my meter was not read (not surprising as this was New Year’s Day) and JEC ‘estimated’ the meter reading – resulting in the higher charges being made on assumed meter figures. Is this fair? I don’t think so.
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Am absoluted horrified at my recent electricity bill. My standing order has increased from £72 per month to £150.00. Everthing is going up but salaries for most remain the same as businesses worry about the credit crunch.
As the JEC is the only electricty provider what can we do…stage a protest,,,why was the cost of electricty allowed to increase by 24%.
This Island is so greedy it replulses me!!
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Thanks Al you are doing a grand job! Keep it up!
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Interesting. I have read through the Electricity (Jersey) Law 1937, and it says:
In determining the tariffs, the States shall have regard to the following or
any other relevant matters –
(a) the present needs of the Company and the future expansion of
services provided by the Company;
(b) the ability of the Company so long as its undertaking is managed
efficiently to pay –
(i) interest on and reimbursement of any debentures, loans or
other borrowing of the company,
(ii) a dividend on the preference shares issued by it at the rate
fixed under the terms of issue of such shares, and
(iii) a reasonable dividend on the ordinary shares issued by it;
(c) any capital expenditure which the Company may reasonably be
expected to incur during the next 5 years and the desirability of the
Company’s charging such expenditure, or any part thereof, to
revenue;
(d) the ability of the Company to pay all proper expenses of and
connected with the working, management and maintenance of the
Company;
(e) the provision of any contributions, whether set apart out of revenue
or otherwise, which the Company may lawfully carry to a reserve,
contingency or amortization fund;
(f) the ability of the Company to make good depreciation, whether or
not provision therefor is made by a reserve or contingency fund;
and
(g) the ability of the Company to meet all other costs,charges and expenses, if any, properly chargeable to revenue.
I guess the decision depends on what the States see as a ‘reasonable’ dividend. (The dividend was cut in 2004 in view of rising energy prices.)
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i bet the states change the law before it evens gets to court
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Remind me again why Alan Breckon is NOT Chief Minister?
Because his leadership ability, humanity and common sense puts him head and shoulders above most of the Council of Ministers. You only have to look at the characteristics of Senator’s Perchard and Le Suer (to name but 2!) to realise that Senator Breckon would have been a huge asset to the island and not the liability that we currently suffer.
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Well Done Alan, ask, believe, receive.
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The major beneficiaries of a reduction in electricity prices would be businesses and those with a greater consumption of electricity – i.e those with larger properties. It also does nothing to encourage energy efficiency.
As for the losers in this equation – that would be the major shareholders in Jersey Electricity i.e the people of Jersey – a nice extra black hole in States finances to fill, thanks Alan.
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Rothwem
Whats wrong with reducing the cost to domestic customers? Or a form of rebate to people on income support or low incomes. Either way, the idea of altruistic help seems to something we’re scared stiff of when it comes to states run businesses.
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my electric bill is more than double than last year,and have spent most of the winter freezing due to keeping heating at lowest level while their dividend has gone up doe,st make sense to me as most firms are not giving out dividends this year.greed rears its ugly head once again.well dne alan for exposing this
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Can anyone explain to me why power costs have increaed by 20+ persent in January when oil costs dropped by over 50% before Xmas?
It seems like the are raping the Jersey consumers just because they can.
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Well done Senator for fighting the corner of the man in the street. Anywhere but Jersey would attract civil unrest for the unprecedented rise in prices of electricity. Because of the rise in price, this quarter has put up my bill by a massive £115.14. Lucky my O.A.Pension is supplemented by still doing a small part time job. I live in private rental accommodation and manage to pay the rent without turning to the States for help. Much more of the price hike will undoubtedly change that.
Well done keep up the good work.
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The day Alan becomes Chief Minister, will be the day I start to have some faith in the COM.
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Finally someone who has more than one brain cell who is trying to help the islands people. well done Alan
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Nevermind luckily this won’t affect the rich enough to drive them away from Jersey as it is but a drop in the ocean to them!
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The JEC are asking for far too much of a price rise.
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Another tax put in place by the States! 20/20, GST, and a disguised tax by increasing a dividend to a state owned company at the expense of the local people….. Thank you Mr Breckon for bringing this to the attention of the jersey people. Let’s just hope that the elected government backs uo the Jersey residents.
On another note, how can any human being promote suicide let alone do it in a public and elected position…… sack Perchard! Sickening and unacceptable behaviour! For Perchard not to stand down is unbelievable…. A normal, reasonable human being would be long gone! God help this island!
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No competition, no problem! A majority owned state owned power company thinks it can do what ever it wants…. when are the people of this island are going to make a stand and stop being treated with such contempt and disrespect. Lets start climbing out of this hole and make Jersey an honest and respectable island!
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Well done Alan. Maybe its time for the people of this Island to stand up and show him the support he deserves on this.
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People are questioning why Alan Breckon isn’t the chief minister.The reason is that he is not a millionaire which is the main credential for the post,or at least has been in the first two instances.Alan Breckon is more “one of the people” which obviously puts him out of the running!
I am amazed at what people are paying monthly for their electricity in Jersey.Since moving to England I am paying £60 per month for gas and electricity combined and that covers heating as well for a 4 bedroomed house.Quite a difference.
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The problem is people in Jersey are too soft and the government and big business know it. If this were France you would have riots on the street. The farmers would be ploughing up the roads and the fishermen would be blockading the ports.
What happens in Jersey? Nothing no wonder nothing goes the way of the majority. Until people learn to complain and tell the government and big business in NO uncertain terms they will not put up with these sort of things then they will carry on and on and on. What will happen the next time something goes up 20%? probably nothing more than a few moans. No wonder everything is so expensive over here I blame the people for allowing this state of affairs.
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agree with you as usual adrian apathy is the desease of jersey that won,t go away until some action is taken. we can boycott shops(which i do)and buy off the net or when away,but essential services like electricy we can,t do without.my sister-in-law from scotland has both gas and electricy and paid less than a quarter of my lecky bill for the both and has her heating on fully the whole winter and also gets the pensioners fuel allowence each year.i have to skimp on mine and keep it low.the states should hang their heads in shame,as most pensioners are the people who use more power, as they are home more.
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Well it would take a Geordie to read the smallprint, us beans are too busy swearing at each other
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adrian(35).
im with you, we all just roll over.
however if people did behave like our french
cousins.
we would find troops here ” tout suite”
no doubt.
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David do you mean the T.A. as this is all we have isn’t it as regards forces? Any other forces I would see as outside forces. This would further aggrovate things somewhat. Maybe they could send the black and tans in from the UK or whatever they are called now?
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Sorry – I have to reiterate the point I made before.
The States of Jersey (that’s you and me)as chief shareholder is going to take their profits and hand it back to the users of electricity.
You all focus on the needy but the greatest beneficiaries of this generosity will be business (far and away the biggest users) and those who wantonly consume power throughout eco-inefficiency and ownership of larger properties. Oh – and not forgetting those people who light their houses like a beacon at Christmas!
The States will have a finance blackhole as a result of this – that needs to be filled with more tax, that cannot be charged to international finance so will have to come from individual people – those who have saved relatively modest sums on their electricity bills…
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Mike R #40 completely negative take on this. Have you ever tried not worrying about things? This is a great result for everyone on any view.
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If he manages to do this, I might actally vote next year…. currently its a waste of time!
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adrian (39)
i hope we never sink to a all time low of disorder in the streets.
what a sad day that would be for our island.
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Mike R there is another massive hole because the very rich don’t pay 20% just in case you hadn’t noticed it, hence we now have GST.
Also one third of the JEC is owned by private share holders. Who would the majority of these be? Poor old widows or would they be the very rich yet again?
Who runs big business? The very rich yet again. Who uses businesses in Jersey? Everyone. What does big business do with increased costs? It passes them on to you and me. What do we do about it? Nothing. Does the government do anything? No because it is composed of big businessmen and the rich. Catch 22 or what?
It is about time everyone and all companies paid the same rate of tax. If this isn’t possible all those unwilling to participate in a fairer Jersey should be jettersoned to their fate elsewhere as they are too greedy and self centred to be worth the effort in my opinion.
Jersey is doing itself no favours in being associated with tax avoidance, worldwide people are being to say enough is enough. How long before the inevitable happens?
Prices in Jersey are being cranked up notch by notch as those in charge know they can get away with it. Until Jersey people say enough is enough nothing will change. It is up to everyone to vote the CoM out at the next elections to stop another six more years of damage being done to grass roots Jersey.
As per bella everyone should where possible boycott everything to do with business in Jersey until common sense is returned. Travel is one area that should be hit hard as far as I am concerned. Maybe everyone should consider boycotting all non essential travel off island for one week every month, or say every Friday? Until drastic action is taken you will see no change. Moaning does nothing, direct action does! Big business only understands on thing and that is money. Stop its money supply and it suddenly listens.
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Adrian, 4 posts and in 3 you moan about the “Rich” now its not that I disagree with everything you say, certainly we do seem to roll over and not stand up for ourselves when we should but why do you detest “teh rich”
Alot of these people you are referring to are Jersey peole who have made good, maybe sold some family land or have a successful business, or just worked plain hard and saved abit, so please Adrian lets inject abit of reasoning into your posts, clearly you have strong views and many of them good but don’t keep on about the rich its making you look and sound like a very jealous individual
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Gary I have no interest in what someone earns but I think it is only right that everyone pays according to their income. If this was implemented by the government we would not have GST, is no one bothered about the state of affairs over here? Are they happy with the way things are going?
There are select groups and individuals over here doing very well so what’s wrong with paying a decent amount of tax on these profits then?
If I were in charge I would love to have rich people over here and the more they earnt the better. 20% of £1billion is £200M tax. I would be encouraging them to earn more and more because we would be getting more and more from them in tax, a win-win situation for all involved. We would only need one billionaire to close our black hole. Pretty easy really isn’t it? Or should we just take an average of £80,000 out of them as we do at present?
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I’ve heard there will be a 25% increase next year as well… Does anybody know if this is true?
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