THE Office of Utility Regulation is investigating changes to the way it issues licences. Last week the States passed a review of commercialisation, which included slight adjustments to the way the regulator operates.

But there were concerns expressed during the debate about the cost of regulation, both financial and the time utilities have to commit to dealing with OUR requests.

Director-general John Curran said the OUR was supportive of the States report’s proposals and pleased that they had been adopted.

‘Clearly, we will now be looking to implement the recommendations as quickly as possible,’ he said.

‘As the National Audit Office report noted, we have already made a number of changes to the way in which we interact with the regulated companies, which are already helping to achieve the outcomes sought from this review.’

Mr Curran said further thought was being given to how the regulatory regime could be simplified.

‘We are currently considering the licensing regime for the three sectors to look again at where regulation is actually needed and to ensure that we can target it appropriately,’ he added.

‘Obviously we want to consider this carefully as any change we put in place now will have implications for the longer term, so we want to ensure that we get it right.’

It intends further consultation with the operators later this year on proposals to help achieve this.

‘While we would dispute some of the cost figures used during the debate, as indeed the NAO did during its review, we are conscious that there remain concerns with the cost of regulation,’ said Mr Curran.

‘This office will be doing all it can to reduce that cost.’

The price of regulation, he said, had fallen each year since 2003.

‘Our costs in 2005 fell a further 7% from 2004 and we have announced a 28% cut in licence fees for 2007 and 2008, which will benefit all regulated companies. In addition, because of the changes we have already made to how we work with the companies, the regulated companies’ costs of complying with regulation will also fall.’

He added that costs could not be considered in isolation from the net benefit gained.

‘We have previously given an indication of the magnitude of the savings consumers have gained, which clearly demonstrate that the benefit to the consumer far exceeds the costs involved.’

Among the changes are switching appeal hearings against the regulator’s decisions from a tribunal to the Royal Court.

The director-general will also now regulate in a way that is proportionate to Guernsey.

Guernsey Electricity managing director Ian Watson said it was moving into a new era.

‘All at Guernsey Electricity are looking forward to working constructively and positively alongside the OUR for the benefit of all our customers.’