M-008 Electricity Market Study

Introduction

On 5 October 2023 we launched the market study into electricity. On 27 June 2024 we released the draft report documentation for consultation. The final set of findings and recommendations was published on 16 January 2025. 

Findings

The study found that current outcomes such as price levels, quality of service and price stability compare favourably relative to other jurisdictions. The key findings are listed below:

• There are challenges in promoting an on-island competitive market structure.
• Jersey Electricity, the main provider, is vertically integrated and involved at all stages of the supply of electricity.
• Current consumer outcomes, such as price levels and price stability, compare favourably to other jurisdictions.
• Efficiency metrics, such as customer minutes lost, indicate Jersey Electricity perform well relative comparable jurisdictions
• Government policy is key to this market, its evolution and future investment needs.
• The Jersey electricity market faces future challenges; which mean current market outcomes may not be replicable in the future.

Recommendations

Based on the findings, we made the following recommendations:

Recommendation 1

To support consumer and business choices, Jersey Electricity should provide clear information on all available tariffs (including greater clarity on time-of-use tariffs); and ensure that its infrastructure, systems and processes allow cost-effective switching between tariffs.

Recommendation 2

To enable viable self and distributed generation Jersey Electricity should develop general publicly available terms of access, where necessary, supported by the provision of network and operational information.

Recommendation 3

The Authority will undertake a further review of the electricity market in three to five years, to capture market developments (such as a new wholesale supply contract). This review will include trends in electricity tariffs, cost efficiency and performance assessment against comparable benchmarks.

Recommendation 4

To reduce market uncertainty and improve consumer outcomes, Government should refine its existing energy policy toward a resilient, competitive market structure, with a clear path to carbon neutrality, offering guidance to suppliers and assurance to prospective investors.