Department of the Environment Ministerial Decision Report
Request for transfer of funds from the Central Environment Vote to the Department of the Environment for Environmental Policy
- Purpose of Report
To enable the Minister to accept an internal budget transfer of £42,000 from the Central Environment Vote (CEV) Capital Head of Expenditure (one-off) (I0000C0014) to the Department of the Environment, Environmental Policy in order to fund a study on energy security.
- Discussion
It is proposed that the costs of this study (£42,000) are met from the CEV. This fund was established to facilitate one-off investments for capital projects, particularly, but not only, those which improve energy efficiency and this would always be the primary role of the fund. However, in addition to this, the fund can be used to:
- Support scientific studies with long term implications for management of Jersey’s protected areas.
- Support locally based non governmental organisations and develop the capacity within them.
- Develop agri-environmental schemes, which will support alternative land-management options.
- To develop partnerships with the business community and promote responsible stewardship and sustainable use within the corporate sector.
Thus the Central Environment Vote has a broad mandate but is primarily concerned with energy and in particular energy efficiency. Previously applications to the CEV include funding a feasibility study on tidal power in 2010. This study was seen as an important first step to facilitate any potential capital investment in renewable energy technologies for Jersey.
The consultation document Pathway 2050: An Energy Plan for Jersey[1] outlines a number of key strategic pieces of work including: A Jersey ‘Stern’ Review (Action Statement 1), ‘Understanding energy security in the local context’ (Action Statement 19), ‘Understanding affordable energy in the Jersey context’ (Action Statement 26) and ‘Understanding how competition in the local energy market affects prices paid by consumers’ (Action Statement 27).
It is proposed in the Pathway 2050 document that the Central Environment Vote funds these four studies with the rationale that they are addressing key areas that underpin our understanding in respect of the Island’s energy use (and ultimately their effects on the energy efficiency measures proposed therein).
The timing of the Security of Supply Study has been accelerated ahead of the agreement of the Energy Plan[2]. This decision was made by the officer group comprising the Chief Officer for the Department of the Environment, the Chief Officer for Economic Development, the Economic Adviser, the Director the Environmental Policy, The Senior Environmental Policy Officer and the Emergency Planning Officer.
Factors contributing to more immediate need for a study into the Island’s energy security include the permanent loss of one electricity interconnector to the Island in the summer of 2012 and the consequent use of on-island fuel oil generation as well as the loss of the gasometer in Tunnel Street in 2012 due to a fire. Thus matters of security of energy supply have become a priority and this study forms a key part of our understanding around this subject and the long term implications for capital investment in energy infrastructure.
The funding of £42,000 will be used by the Department to fund the consultancy assistance required to carry out a study into the long term security of Jersey’s energy supply.
- Recommendation
For the Central Environmental Vote Capital Head of Expenditure (I0000C0014) to decrease by £42,000 and the DoE Revenue Head of Expenditure to increase by the corresponding amount.
- Reason for Decision
Under Financial Direction 3.6 and the Public Finances (Jersey) Law 2005, the approval of the Minister for Treasury and Resources is required for any variations to heads of expenditure. Authority to approve non-contentious budget transfers under £1,000,000 has been delegated to the Treasurer of the States.
- Resource Implications
Other than those detailed in the report there are no further financial or manpower implications.
- Action Required
The Minister for DoE to seek approval from the Minister for Treasury and Resources for this budget transfer. The Finance Director for DoE will then action the budget transfer in conjunction with the Head of Financial Performance and Reporting.
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