Author Topic: Major rise in electricity bills  (Read 2173 times)

Offline danrok

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Major rise in electricity bills
« on: November 01, 2012, 09:05:04 PM »
Jersey Electricity will increase prices by 9.5% on 1 January 2013.

This is due to the failure of one of their two cables to France, their failure to install a new third cable fast enough, and the use of local oil fueled generators.

http://www.bbc.co.uk/news/world-europe-jersey-20160642

Offline boatyboy

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Re: Major rise in electricity bills
« Reply #1 on: November 01, 2012, 09:25:38 PM »
I suggest it will cost islanders more because look at the electricity used in fridges in shops, restaurants, butchers, ladies hairdressers driers the large lines of fridges at supermarkets and butchers to name a few.

They will all be charging more to cover the electricity increase and will pass on the cost.

To think that the JEC is 51% owned by The States of Jersey.

Thanks Treasury Minister.

bb
« Last Edit: November 01, 2012, 11:24:33 PM by boatyboy »

Offline Mark Forskitt

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Re: Major rise in electricity bills
« Reply #2 on: November 01, 2012, 09:47:09 PM »
One wonders that JE have not/did not take insurance to cover the rather critical event of failure of one of two essential cables.  I might also ask why the consumer is paying for a failure of capital equipment, that almost certainly sits in the accounts as an asset of the shareholders.  Seems to me the financal onus ought to be on said shareholders.

Offline Fritz

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Re: Major rise in electricity bills
« Reply #3 on: November 02, 2012, 12:18:44 AM »
What mark said.
The shareholders are happy to accept dividends on THEIR investment. They should be expected to accept losses.

Offline boatyboy

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Re: Major rise in electricity bills
« Reply #4 on: November 02, 2012, 01:00:38 AM »

Mark is correct, let us not forget that retail is flat, therefore not making money as it was a few years back.

It would be safe to assume that the powerhouse is also affected.

It would be safe to also assume cross subsidy,  just put a few extra percent on to electricity users to make up the short fall.

Time for someone in authority to look into this. Why should electricity users have to pay for a retail investment that is not producing? If it is publish the figures separately. Of course I may be wrong, but prove it in this economic landscape where almost everyone else in retail is suffering.

bb

Offline Tosh

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Re: Major rise in electricity bills
« Reply #5 on: November 02, 2012, 01:39:33 AM »
Mark is correct, let us not forget that retail is flat, therefore not making money as it was a few years back.

It would be safe to assume that the powerhouse is also affected.

It would be safe to also assume cross subsidy,  just put a few extra percent on to electricity users to make up the short fall.

Time for someone in authority to look into this. Why should electricity users have to pay for a retail investment that is not producing? If it is publish the figures separately. Of course I may be wrong, but prove it in this economic landscape where almost everyone else in retail is suffering.

bb

If you take a look at their Annual Report & Accounts then you will see that other areas of their business make reasonable profit, perhaps without this then we could end up paying more.  Just a thought!

Offline Tosh

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Re: Major rise in electricity bills
« Reply #6 on: November 02, 2012, 01:46:49 AM »
I suggest it will cost islanders more because look at the electricity used in fridges in shops, restaurants, butchers, ladies hairdressers driers the large lines of fridges at supermarkets and butchers to name a few.

They will all be charging more to cover the electricity increase and will pass on the cost.


To think that the JEC is 51% owned by The States of Jersey.

Thanks Treasury Minister.

bb

BB:  This is gobbledygook, what on earth are you talking about?

Offline danrok

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Re: Major rise in electricity bills
« Reply #7 on: November 02, 2012, 07:16:25 PM »
BB:  This is gobbledygook, what on earth are you talking about?

He's saying an increase in electric bills can cause increases elsewhere.  It has an inflationary effect.

Offline boatyboy

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Re: Major rise in electricity bills
« Reply #8 on: November 02, 2012, 07:59:39 PM »

Just to expand danrok's point Tosh,

If your local corner shop has new owners and become expensive customers will use their feet to take them elsewhere.

When utilities increase in price like electricity, fuel for the van or car then all businesses using these commodities pay more as does the ordinary resident.

It must be obvious that businesses that are very reliant on electricity, like iceland who's fridges are on seven days a week night and day, will not only be paying the 9.5% more to the JEC but also 5% in GST on the increase. This will be passed on to the customer through an increase in prices to pay the increased charges. Obviously a private consumer can make cuts backs, that is a personal choice.

Regarding the cross subsidy I mentioned " you made a good point ". I am not an accountant but ( if I have read the information correctly ) they increased profits but made a 24% loss. I also wonder why a Government sponsored business is allowed to compete in retailing, electrical contractors etc with the private sector ?

What I find interesting ( and maybe a real accountant can help here ) is that that they have hedged the euros to pay the french company but the £1 now buys more euros than it did last year so electricity in real terms should be cheaper. The other advantage is that cheap electricity ( up to a maximum of 7%) is being produced by the waste plant and given that it was paid for by taxpayers one would think this was sold cheaply to the JEC.

Therefore why the huge increase in the cost of electricity. Someone else spotted that they want to pay lovely dividends to shareholders.

Who are those shareholders, for instance any wealthy states members hold shares through companies.

Thats a secret.

I still get the impression that the JEC are not putting the public first, and not being forced to by the States who own 51% therefore have a majority say. It is different in France the government has to ok increases.

BB


Offline danrok

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Re: Major rise in electricity bills
« Reply #9 on: November 03, 2012, 11:42:49 PM »
This increase would also coincide with Philip Ozouf's planned 6.9% increase in fuel duty, starting 1 January 2013.

Offline Fritz

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Re: Major rise in electricity bills
« Reply #10 on: November 04, 2012, 01:19:45 AM »
Will the JEC be allowed to put up the cost of Electricity to cover the maintenance costs of  the village they own up at the top of Queens Road?
« Last Edit: November 04, 2012, 01:21:56 AM by Fritz »