Watchdog ’saves us all millions’

By Nigel Baudains

THE Office of Utility Regulation has saved the Bailiwick more than £40m., according to its annual report for 2006. The report claims that the regulator has limited price increases across the three utility sectors it controls - post, electricity and telecoms.

It said its support for introducing competition in the telecoms market had helped reduce prices for most services.

‘These savings are very positive news for consumers and for the Bailiwick’s economy,’ said OUR director-general John Curran.

‘The £40m. that consumers have not had to pay in higher utility costs is money consumers have available to spend in other areas of the economy, such as in local shops and businesses.

‘By limiting increases in utility prices, the OUR is indirectly helping minimise the rise in the cost of living in Guernsey.’

He said the OUR’s role was to balance the need to continue investing in, maintaining, and developing the key services which underpin the islands’ economy, whilst ensuring that the services the utilities provided were efficient, reasonably priced and gave value for money.

Competition in the telecoms market which regulation had encouraged, coupled with price controls on Cable & Wireless Guernsey, had resulted in reductions of more than 37% in the price of landlines charged since 2002. Across all the key services - broadband, mobile, leased lines and fixed calls - charges were now significantly less than they were prior to competition.

The range of services had also increased and, in mobile in particular, the price of handsets and the packages available for all types of customer was much wider with greater value for customers.

Working with Guernsey Electricity and Guernsey Post, the OUR said it had limited price rises by capping tariff increases for both utilities.

Although external forces such as rising energy prices and price rises implemented by Royal Mail in the UK made it inevitable that tariffs would have to go up, the OUR’s work had identified £6m. in efficiency savings in both companies.

* The report is available at www.regutil.gg or by calling the office on 711120.