IoD seminar to debate challenges of government owned utility companies

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The Institute of Directors’ first debate of the New Year is set to discuss government ownership of the island’s utility companies and how Guernsey can be best served by competition and regulation.

This, the second of four seminars in the Yorkshire Guernsey sponsored series, is particularly significant given the Office of Utility Regulation’s latest decision to increase competition within the island’s postal market.
The debate will consider whether local government is equipped to provide a cost effective service to customers and whether, in increasingly pressing economic times, the utility companies would be best operated by the private sector.

The seminar will explore whether Guernsey has the critical mass to allow competition on all utility services. The OUR believes its role is to strike a balance which is fair to consumers, the utility companies, and shareholders which in the case of GPL and GEL is the Guernsey taxpayer. Discussions will also consider whether regulation has become too heavy handed or not sufficient enough to control costs and service standards.

Chairman of the Guernsey branch of the IoD, Mark Thompson commented that with the island facing numerous challenges in 2010, the seminar series was a good forum for debate and more importantly; a catalyst for change.

“Our first winter debate, which tackled the topic of the Welsh Audit Office Report, was a reflection of the IoD’s commitment to encouraging open discussion of the challenges facing the island.

“The issue of how well the ownership and regulatory framework for government owned utilities suits Guernsey is highly topical. It is essential that the island look closely at how competition in these industries can be effectively managed for the benefit of the public as both customers and shareholders,” said Mr Thompson.

“With testing times ahead the island needs to be working smarter and with greater conviction.”

Moderated by IoD Committee member John Stares, the panel line up is an indication of the importance this subject holds for the island.

Director General of the Office of Utility Regulation, John Curran, will present the views of his department. With a background in senior regulatory roles, he will provide an overview of the island’s regulatory framework and insights into the function of the regulatory agency for the three utility sectors of telecommunications, post and electricity in Guernsey.

Sitting alongside him will be Managing Director of Guernsey Electricity, Ian Watson. Mr Watson will relate his views on regulation in the island and the challenges facing Guernsey Electricity as a 100% States-owned company which forms part of the key infrastructure in the island.

Deputy Carla McNulty Bauer, Guernsey’s Minister of Commerce and Employment will provide an insight into the department responsible for promoting the interests of all sectors of our economy. She will be joined by Daragh McDermott, Director of Corporate Affairs for the Jersey Telecom Group and Company Secretary of the Group Board. Jersey Telecom is owned by the States of Jersey and operates Wave Telecom in Guernsey, Daragh is therefore well placed to see how differently Jersey and Guernsey manage competition and standards of service in the utility sectors and comment on the implications of State ownership.

The seminar will take place at the Duke of Richmond Hotel on Friday 15th January from 12pm to 2pm. To book a place, please contact Mark Palfrey on 01481 254262 or email: iod@garenne.gg to obtain an application form.