Guernsey regulator called 'not fit for purpose' over its lack of power
ITV Channel reporter Matthew Leach analyses three major business and policy decisions where Guernsey's regulatory authority was not involved
The Guernsey Competition Regulatory Authority (GCRA) has been called "not fit for purpose" after confusion over how much the organisation actually regulates.
The organisation is meant to protect consumers from unfair competition, high prices and monopolies on the island, and saved consumers more than £13 million in 2023.
However, in recent years, the GCRA was not involved in three major business decisions.
It has caused confusion over what the GCRA regulates under the island's current competition law and how much power the organisation has in its remit.
Nick Guillemette of the Guernsey Boat Owners Association (GBOA) says "It's not powerful enough - they should be able to intervene and act as an economic regulator for the island. We're on our own, we don't have an ombudsman to turn to.
"Basically, it's not fit for purpose."
Sure-Vodafone Airtel Merger
Sure and Airtel-Vodafone announced plans to merge in the Channel Islands in 2022.
In 2023, the Jersey Competition Regulatory Authority (JCRA) said it could not approve plans as the merger would only leave JT and Sure as the two major mobile networks serving the island.
However, following a public consultation, the JCRA approved the merger in August, saying "the outcome will protect consumers and ensure healthy competition" after Sure agreed to legally binding promises on tariffs and pricing.
Ordinarily, mergers would need permission from the GCRA - however, the island's Economic Development Committee put forward proposals for States Members to review the plans instead.
It prompted concerns at the time from the committee's Vice President Deputy Steve Falla, who said "We have a regulator in place - the GCRA - and a competition law in place, and we needed to bypass both of those to make a proposal to allow the deal go through.
"I did not think that was appropriate. If there's something wrong with the regulatory model or the law, then that's what we should deal with - not turn a blind eye to it to allow a deal to go through."
Electricity prices
Sarah De Carteret is a bar manager in Guernsey and when electricity prices rose by 10% in July, she was surprised there was no regulatory input on the increase.
Sarah says a regulator overseeing these decisions would "make it fair" for businesses.
She explains: "They're regulating the building trade independently, so why can't they do that on electric?
"Since it's not been independent, the prices have just gone up and up. There has to be a break somewhere because people just can't afford it."
GCRA previously were allowed to intervene in the energy sector, but States took that power away in 2021.
It was argued that the regulator should be only allowed to look at price impact, without taking into account broader considerations.
Mooring fee increases
Nick believes that the GCRA not intervening when mooring fees increased proves the organisation is "not fit for purpose".
The GCRA could not act on prices as the sector did not fall under the remit of competition law.
The Boat Owners Association says mooring charges were raised between 12% to 22% above inflation, with concerns that boat owners could face further increases of 20% to 30% in 2026.
He says the level of fee increases is pushing some of his members out of the industry, believing the regulator needs to intervene in decisions that affect industry members.
Deputy Aidan Matthews says "We do use the GCRA for consumer protections, but things like mergers are one of the most important things that happen that they can advise on.
"If we're not using the regulator for that, then [we] do have to ask the question, are we using the regulator in the best way?"
The GCRA explains: "Competition oversight and utility regulation help ensure households and businesses get value for money in a marketplace where better businesses can thrive, and complacent businesses cannot take advantage of the absence of choice.
"Guernsey has a small economy and subscale in many sectors, but we want the Guernsey economy to continue to generate the wealth that supports the things our community cares about.
"To enable that, it is important to reduce the risk of unfairness and erosion of trust in markets if they work mainly in the commercial interests of a few.
"Competition oversight and utility regulation are key to ensuring that is less likely to happen."
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