Skip to main content Skip to accessibility
This website is not compatible with your web browser. You should install a newer browser. If you live in Jersey and need help upgrading call the States of Jersey web team on 440099.
Government of Jerseygov.je

Information and public services for the Island of Jersey

L'înformâtion et les sèrvices publyis pouor I'Île dé Jèrri

Increases in Utility Charges to States Tenants with effect from November 2010

A formal published “Ministerial Decision” is required as a record of the decision of a Minister (or an Assistant Minister where they have delegated authority) as they exercise their responsibilities and powers.

Ministers are elected by the States Assembly and have legal responsibilities and powers as “corporation sole” under the States of Jersey Law 2005 by virtue of their office and in their areas of responsibility, including entering into agreements, and under any legislation conferring on them powers.

An accurate record of “Ministerial Decisions” is vital to effective governance, including:

  • demonstrating that good governance, and clear lines of accountability and authority, are in place around decisions-making – including the reasons and basis on which a decision is made, and the action required to implement a decision

  • providing a record of decisions and actions that will be available for examination by States Members, and Panels and Committees of the States Assembly; the public, organisations, and the media; and as a historical record and point of reference for the conduct of public affairs

Ministers are individually accountable to the States Assembly, including for the actions of the departments and agencies which discharge their responsibilities.

The Freedom of Information Law (Jersey) Law 2011 is used as a guide when determining what information is be published. While there is a presumption toward publication to support of transparency and accountability, detailed information may not be published if, for example, it would constitute a breach of data protection, or disclosure would prejudice commercial interest.

A decision made on 30 September 2010 regarding approval of increases in utility charges to States tenants with effect from November 2010

Decision Reference:      MD-H-2010-0080 

Decision Summary Title :

DS - Increase in utility charges to States tenants - November 2010

Date of Decision Summary:

20th September 2010

Decision Summary Author:

John Hamon – Finance Director

Decision Summary:

Public or Exempt?

(State clauses from Code of Practice booklet)

Public

Type of Report:

Oral or Written?

Written

Person Giving

Oral Report:

 

Written Report

Title :

WR- Increase in utility charges to States tenants - November 2010

Date of Written Report:

20th September 2010

Written Report Author:

Senior Management Accountant      

Written Report :

Public or Exempt?

(State clauses from Code of Practice booklet)

Public

Subject:

Increase in utility charges to States tenants - November 2010

Decision(s):

The Minister,

          

1.     approved the increase in charges for gas heating and hot water to States tenants by 16.75% with effect from 8th November 2010.

 

2.     approved the increase in charges for oil heating to States tenants by 18% with effect from 8th November 2010.

Resource Implications:

Financial: Increase in revenue of £1,200 per week for gas and £1,200 per week for oil, which will be fully offset by equivalent increases in the cost of supply.

Action required: Finance Director to arrange for the approval of the Minister for Treasury and Resources under Financial Direction 4.1 and to notify affected tenants and Income Support of the changes.

Signature:

Position:

Minister

Date Signed:

Date of Decision (If different from Date Signed):

Increases in Utility Charges to States Tenants with effect from November 2010

REPORT FOR THE MINISTER FOR HOUSING  

Increase in Gas and Oil Utility Charges to States Tenants  

Purpose  

To consider an increase in charges to States tenants who receive heating and hot water by communal gas and oil fired systems. 
 

Background  

A total of 881 housing properties are currently supplied either by communal or individual heating systems fuelled by either gas (433) or oil (448).  The Department recharges the cost of the utilities to the tenants who receive this service. 
 

Gas  

The Department has received notification from Jersey Gas that, with effect from 1st October 2010 it will be increasing the unit charge for gas by 16.75%, from 7.16p per unit to 8.36p per unit.   Following a review of charges in 2009 the charge to tenants was reduced by 5%. Tenant charges for gas were increased by 15% from 4th January 2010 and 5% from 1st March 2010. On both occasions the increase followed notification of an equivalent increase by the supplier.  
 

Oil  

Charges to tenants for oil was last changed in April 2009 and at that time it was reduced by 5%. Since that time oil prices have risen by a total of 49.6%, from 29.04 pence per litre in April 2009 to 43.42 pence per litre in September 2010. The last general review of charges was undertaken by the Department in January and given the fluctuations of prices in the market for oil and changes in consumption levels, it was considered appropriate at the time not to adjust the price to tenants. Since then oil prices have increased by a further 18% and it is now felt necessary to pass on the more recent price changes to tenants in order that the Department is still able to recover the full cost of supply. 
 

Heating Replacement Programme  

The Department is currently replacing existing fossil fuel systems with electric heating for which the tenants will pay the utility company directly for the power they consume.  Since January 2010, 277 tenants have had their departmental heating charges removed largely as a result of this programme, (59 units from gas and 218 from oil).  This programme will continue for the remainder of 2010 and into 2011 and 2012. 
 

Impact of Proposed Increases  

The following tables show the impact on individual property types of the proposed increase of 16.75% in gas and 18% in oil charges. 
 
 
 

Gas Charges

 

 

 

 

 

 

 

 

 

 

 

Accommodation

Bedrooms

Current Charge

Increase

New Charge

Number of Units

 

 

£

£

£

 

Bedsit

0

11.83

1.98

13.81

1

 

 

 

 

 

 

Bungalow

2

17.18

2.88

20.06

1

 

 

 

 

 

 

Flat

1

15.37

2.57

17.94

160

 

2

17.71

2.97

20.68

183

 

3

18.91

3.17

22.08

52

 

 

 

 

 

 

House

2

18.91

3.17

22.08

2

 

3

20.11

3.37

23.48

9

 

4

21.28

3.56

24.84

2

 

 

 

 

 

 

Maisonette

2

17.71

2.97

20.68

1

 

3

18.91

3.17

22.08

22

 

 

 

 

 

433

 

Oil Charges

 

 

 

 

 

 

 

 

 

 

 

Accommodation

Bedrooms

Current Charge

Increase

New Charge

Number of Units

 

 

£

£

£

 

Bedsit

0

9.80

1.76

11.56

6

 

 

 

 

 

 

Bungalow

1

12.73

2.29

15.02

1

 

2

14.67

2.64

17.31

6

 

 

 

 

 

 

Flat

1

12.73

2.29

15.02

74

 

2

14.67

2.64

17.31

118

 

3

15.66

2.82

18.48

10

 

 

 

 

 

 

House

1

13.73

2.47

16.20

1

 

2

15.66

2.82

18.48

73

 

3

16.65

3.00

19.65

88

 

4

17.63

3.17

20.80

27

 

 

 

 

 

 

Maisonette

2

14.67

2.64

17.31

37

 

3

15.66

2.82

18.48

6

 

4

17.63

3.17

20.80

1

 

 

 

 

 

448

 
 
 

Compliance with Financial Directions 

Financial Direction 4.1 requires that any increases in charges should normally be limited to 2.5%. Compelling cases which exceed this limit must be approved by the Minister for Treasury and Resources.  For that reason it will be necessary to request the approval of the Minister for Treasury and Resources before implementing the increase. 
 

Recommendations 

That the Minister;- 

1.     Approve the increase in utility charges to States tenants by 16.75% for gas heating and 18% for oil heating with effect from 8th November 2010.

 
 

 

Back to top
rating button