No need to wait for the economies
Monday 11th July 2011, 2:37PM BST.
To date, three senior figures within Guernsey Water and Guernsey Electricity have indicated their support for merging the two utilities in order to provide a better service and make efficiencies.
For those at the sharp end to be so unequivocal suggests that there are few reasons not to go ahead – yet the decision rests with the States and no one seems to be making a sensible move happen.
The suggestion was apparently made some 25 years ago, although the head of Guernsey Water did not know why the merger foundered.
The most likely explanation, however, is that at the time, the utilities were each the political responsibility of a States committee, with its own president and membership and neither would be enthusiastic about relinquishing the involvement and influence that they had and then, as now, personal agendas can take priority over what is best for the community.
Times are different now, however, with Treasury and Resources acting as shareholder and safeguarding the interests of the consumer and taxpayer and, if there is a prima facie case for merger, then T&R has an obligation to pursue it.
Whether it does remains to be seen.
The department has a challenging mandate and its responsibilities for shareholders’ functions and duties in this respect are currently 13th in a long list of duties and it may simply not be a priority.
Yet Public Services is looking at the possible commercialisation of the ports and Guernsey Water and it would appear sensible to consider the water and electricity fusion at the same time.
Whatever the States does about commercialising the ports, there are significant savings that can be gained by removing duplications from within the two utilities and that clearly has a bearing on customer interests.
Since the Office of Utility Regulation has already spoken warningly about the effects on consumers of utility overheads – notably the pension schemes which mirror the States own gold-plated model – it is perhaps surprising that the regulator is not making more of the opportunities that a union would bring.
The companies believe that they exist – so why is the Policy Council not allowing it to happen?
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