ONE of the striking outcomes of yesterday’s Institute of Directors’ debate on the ownership of utilities and the benefits of regulation was just how entrenched views are on the subject.

Not just from the four panel members – two utility bosses, one regulator and a minister whose remit included regulation – but the audience itself.

Where there was unanimity, however, was in acknowledging that no utility should be run as a department of government. That was asking for trouble. But if those utilities are to be run as commercial entities, especially those with market dominance, how best to ensure that the interests of the consumer are safeguarded?

One of the current difficulties in the model that Guernsey has adopted is that the political dimension remains ever-present – and it is not just the lobbying against a decision of the regulator.

Guernsey Post is in the spotlight because it believes the cost-cutting and monopoly-easing stance taken by the regulator will significantly damage the business and has waged an effective campaign against that happening.

Ultimately, however, (unless the States amends the law under which the regulator operates) it can only avoid that through a successful appeal to the Royal Court.

While it has a little time to make that call, will the decision be completely commercially driven, based on the strength of the case against the regulator? The chief executive knows what he needs to do and will have advised his board accordingly.

But whether an appeal goes ahead or not is unlikely to be taken just by the board. It will be consulting Treasury and Resources, as shareholder, and will the advice from the effective owner be based solely on an analysis of the strength of the case against the regulator and the risks involved in proceeding – or will other factors come into play?

Quite apart from the costs involved and the reputational damage of losing an appeal, the formal process would in the minds of many islanders effectively pit Commerce and Employment, as custodian of regulation, against T&R, as custodian of the taxpayers’ and consumers’ interests.

Should political considerations be able to prevent an otherwise proper appeal?

While there is no indication they have, just the possibility alone again highlights the difficulties associated with state ownership of utilities.