News  Release
Saturday 21st June 2008

POLICY GROUP TO MEET ENERGY EXPERT

Mr Peter Cameron, a director of consultants Energy Markets International (see Note 1) will visit the island on Monday 23rd June 2008 to discuss carbon dioxide emissions associated with imported electricity.  

Mr Cameron believes that a simple approach is not appropriate.  This could have a major impact upon the assumptions made in the Energy Policy document to be discussed by the States on the 25th June 2008.   Mr Cameron will meet with some members of the Energy Policy Group, including Professor Nicholas Day.  The Energy Policy Group has been asked to provide details to support their position ahead of the meeting.  

Paul Garlick, Managing Director of Guernsey Gas commented: “The Energy Policy document talks about low carbon imported electricity but it does not quote any figures.  Also, it does not declare how the Energy Policy Group has come to the conclusion that imported electricity is low carbon”.  

Mr Garlick also reminded people not to be distracted and forget about the other important concerns now expressed by various parties.  He stated: “The cost of phasing out fossil fuels is beyond comprehension at the estimated £300M. We simply cannot afford it.  To achieve the ultimate goal of renewable generation on island would add another £700M to the bill”.  

He also reminded people about the security of supply implications, “The island will not be protected from fossil fuel shortages and/or price increases by going electric.  GEL and Europe use fossil fuels for power generation, to think that we are protected by the cable link to France is just a myth”.  

With regard to Professor Nicholas Day’s comments covered by the media this week, Mr Garlick is concerned that he may have misinterpreted Guernsey Gas’ position so has extended and invitation to Professor Day through the Energy Policy Group to meet with him.  Mr Garlick said he has invited Professor Day through the Energy Policy Group to tell him exactly which figures he disagrees with.  “Many of the cost estimates included in the Guernsey Gas presentation are taken from information in the Energy Policy report so I am confused about the comments”.  

GEL and OUR have also been invited to meet with Mr Cameron as they could be directed by the policy to review how much power should be taken from the European grid.   

Another highly regarded independent energy consultant, AEA Technology (see Note 2), has commented upon the current contract held by Jersey Electricity.  To quote: “The current contract held by Jersey Electricity stipulates that EDF are contractually obliged to supply Jersey using their generators or generation capacity purchased and delivered by them – this statement is highly flexible.” It continues “Hence, this statement merely means that EDF are the legal owners of electricity that they will sell to Jersey Electricity.  This being the case, any increases in demand from Jersey, either short or long term, may result in this demand being met by generation in France (nuclear, renewable or thermal), or imported generation (likely to be thermal as it is the lowest cost generation outside of France) from France’s neighbours. Paul Garlick has enquired whether GEL have the same contractual terms as the Jersey Electricity Company and is awaiting a response from GEL and/or OUR.  

Paul Garlick, Managing Director of Guernsey Gas stated: “I have heard similar comments with reference to GEL’s purchasing of electricity from EDF.  However, the people that have told me about this actually thought that it meant that they were getting nuclear power.  Hopefully people will challenge this perception before the important debate on the 25th June 2008.”