‘Chancellor’ may back GE loan

Tuesday 4th August 2009, 1:00PM BST.

TREASURY minister Charles Parkinson would consider backing a loan to fund Guernsey Electricity’s future projects. 0719354

It is the latest development in the stand-off between the utility and the regulator over prices.

But none of the States departments responsible wants to intervene.

Guernsey Electricity said last week that it did not have enough money to fund long-term projects after the States-owned power company announced a loss of £834,000 for the year ending 31 March, despite meeting the regulator’s efficiency targets.

Deputy Parkinson said he would consider the States acting as guarantor if Guernsey Electricity could get a loan, but it had to make a profit to be able to get one.

He wanted the method of calculating electricity prices reviewed.

‘The company board is doing a good job,’ he said.

He added that although Treasury, a 100% stakeholder in Guernsey Electricity, could not intervene in the dispute between it and the regulator, Commerce and Employment might be able to do so.

‘We cannot step in because we have no control over the OUR, it answers to Commerce and Employment. Our job, as the shareholder, is to see that the management is doing a good job. It’s not our responsibility to interfere with operational issues.

‘Commerce and Employment may be able to help, but I hope that Guernsey Electricity will ask for a new price control and a sensible solution will be reached by all parties.’

To read Guernsey Press stories in full click here for subscription details. Individual editions are now available online.

View more: Charles Parkinson news, Treasury And Resources news.

1
Eric

August 5, 2009 at 1:42 pm

And then I suppose the poor old Guernsey Tax payer will have to pay up for many years to come.

If having these finance people is a great for Guernsey ; Why is it so often we are in trouble, money wise.

Isn’t it about time the 10% was increased; we hear daily that times are altering daily, yet they stick with the same amount they arrived with;
‘
Better to get rid of them and let’s roll our sleeves up and get on with as our forefathers did,

This borrowing is the cowards way out it’s not big finance, it’s an easy way out “For the present” our kids will curse us in years to come.

However I fear there is more in it than meets the eye; why can’t we have an honest way about our ruling body, They are only digging their own graves if they carry on like this.

Report abuse