Comment on P.41/2009: Electricity Tariffs: Regulations under Article 22 of the Electricity (Jersey) Law 1937.

Information about the publication of Ministerial Decisions

A formal published “Ministerial Decision” is required as a record of the decision of a Minister (or an Assistant Minister where they have delegated authority) as they exercise their responsibilities and powers.

Ministers are elected by the States Assembly and have legal responsibilities and powers as “corporation sole” under the States of Jersey Law 2005 by virtue of their office and in their areas of responsibility, including entering into agreements, and under any legislation conferring on them powers.

An accurate record of “Ministerial Decisions” is vital to effective governance, including:

demonstrating that good governance, and clear lines of accountability and authority, are in place around decisions-making – including the reasons and basis on which a decision is made, and the action required to implement a decision
providing a record of decisions and actions that will be available for examination by States Members, and Panels and Committees of the States Assembly; the public, organisations, and the media; and as a historical record and point of reference for the conduct of public affairs

Ministers are individually accountable to the States Assembly, including for the actions of the departments and agencies which discharge their responsibilities.

The Freedom of Information Law (Jersey) Law 2011 is used as a guide when determining what information is be published. While there is a presumption toward publication to support of transparency and accountability, detailed information may not be published if, for example, it would constitute a breach of data protection, or disclosure would prejudice commercial interest.

A decision made (24/04/2009) regarding: Comment on P.41/2009: Electricity Tariffs: Regulations under Article 22 of the Electricity (Jersey) Law 1937.

Decision Reference: MD-E-2009-0070
Decision Summary Title :	Comment on P41/2009: Electricity Tariffs: Regulations under Article 22 of the Electricity (Jersey) Law 1937		Date of Decision Summary:	22nd April 2009
Decision Summary Author:	Legal and Intelligence Manager		Decision Summary: Public or Exempt? (State clauses from Code of Practice booklet)	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	n/a
Written Report Title :	Comment on P41/2009: Electricity Tariffs: Regulations under Article 22 of the Electricity (Jersey) Law 1937		Date of Written Report:	20th April 2009
Written Report Author:	Legal and Intelligence Manager		Written Report : Public or Exempt? (State clauses from Code of Practice booklet)	Public
Subject: Comment on P41/2009: Electricity Tariffs: Regulations under Article 22 of the Electricity (Jersey) Law 1937
Decision(s): The Minister approved the comment on P9/2009: on P41/2009: Electricity Tariffs: Regulations under Article 22 of the Electricity (Jersey) Law 1937 to be presented to the States at the earliest opportunity.
Reason(s) for Decision: To enable the Minister for Economic Development to comment on P41/2009: Electricity Tariffs: Regulations under Article 22 of the Electricity (Jersey) Law 1937
Resource Implications: None
Action required: Legal and Intelligence Manager to forward the comment to the States Greffe and request that it be presented to the States on 24th April 2009
Signature:		Position: Minister for Economic Development
Date Signed:		Date of Decision (If different from Date Signed):

Comment on P.41/2009: Electricity Tariffs: Regulations under Article 22 of the Electricity (Jersey) Law 1937.

COMMENTS ON PROPOSITION P41/2009

Presented by the Minister for Economic Development

While I acknowledge the request presented by Proposition 41/2009, namely to exercise powers delegated under Article 35 of the Electricity (Jersey) Law 1937, it is important to comprehend that prior to bringing forward any Regulations under Article 22 in respect of determining tariffs, I am mandated to undertake a thorough examination of all relevant matters prescribed under Article 22 (2).

This Article details seven key areas for analysis and consideration to enable the States to reach an informed choice and be certain of acting in the public interest. The States must therefore take account of:

the present needs of the Company and the future expansion of services provided by the Company;

the ability of the Company so long as its undertaking is managed efficiently to pay:
- interest on and reimbursement of any debentures, loans or other borrowing of the company,
- a dividend on the preference shares issued by it at the rate fixed under the terms of issue of such shares, and
- a reasonable dividend on the ordinary shares issued by it;

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;

the ability of the Company to pay all proper expenses of and connected with the working, management and maintenance of the Company;

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;

the ability of the Company to make good depreciation, whether or not provision therefore is made by a reserve or contingency fund; and

the ability of the Company to meet all other costs, charges and expenses, if any, properly chargeable to revenue.

Evidently this is no light undertaking. To meet the requirements of Article 22 (2) it is implicit that I must commission an independent review of the Jersey Electricity Company using the paragraphs above to form the terms of reference. The Economic Development Department will undertake the process of securing an independent agency to complete the review as soon as reasonably practicable in accordance with the Financial Directions.

It is important for Members to appreciate that if the States fail to have sufficient and reliable information in respect of the matters prescribed under Article 22(2), which material is necessary for making an informed decision on a proposition under Article 22(1), it is highly probable the decision would be struck down by the courts on a challenge by way of judicial review.

24 April 2009