Heating Oil Market: Request Jersey Competition Regulatory Authority to Investigate

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A decision made 19 April 2011:

Decision Reference: MD-E-2011-0057
Decision Summary Title :	Request to the JCRA under Article 6(4) of the Competition Regulatory Authority (Jersey) Law 2001 to produce a report examining the Heating Oil Market in Jersey		Date of Decision Summary:	15th April 2011
Decision Summary Author:	Strategy Manager, Policy and Regulation		Decision Summary: Public or Exempt? (State clauses from Code of Practice booklet)	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	n/a
Written Report Title :	Article 6 (4) request for JCRA report examining the Heating Oil Market in Jersey.		Date of Written Report:	15th April 2011
Written Report Author:	Strategy Manager, Policy and Regulation		Written Report : Public or Exempt? (State clauses from Code of Practice booklet)	Public
Subject: Heating Oil Market in Jersey - Article 6 (4) request for the JCRA to examine and report.
Decision(s): The Minister requested the JCRA to produce a report examining the Heating Oil Market in Jersey under the authority of Article 6(4) of the Competition Regulatory Authority (Jersey) Law 2001.
Reason(s) for Decision: The JCRA is currently conducting a market study into the sale and supply of heating oil in Jersey. The Minister understands that whereas most parties have provided the JCRA with information on a voluntary basis, some parties have not been willing to do so. Accordingly, the Minister has decided that in order to ensure that the JCRA can effectively undertake a market study, a request should be made to the JCRA under Article 6 (4) of the of the Competition Regulatory Authority (Jersey) Law 2001, as such a request will equip the JCRA with additional powers under the provisions of Article 26(2) of the Competition (Jersey) Law 2005.
Resource Implications: The JCRA will meet the cost of the review from its own resources. In the event that specific consultancy assistance is required, the JCRA will either manage this cost within their competition law grant or seek support from the Department which will be assessed and managed in accordance with Financial Direction 5.1 in the usual manner.
Action required: The attached request to be sent to the JCRA for its consideration.
Signature: Senator A.J.H.Maclean		Position: Minister
Date Signed:		Date of Decision (If different from Date Signed):

Heating Oil Market: Request Jersey Competition Regulatory Authority to Investigate

Ref: C696/11

06 April 2011

Mr John Curran

Executive Director

Jersey Competition Regulatory Authority

2nd Floor Salisbury House

1-9 Union Street

St Helier

Jersey

JE2 3RF

Dear John

Request by the Minister for Economic Development for the JCRA to produce a report examining the Heating Oil Market in Jersey under the authority of Article 6(4) of the Competition Regulatory Authority (Jersey) Law 2001.

On 2 March 2011, the JCRA publicly announced the launch of two market studies to review the sale and supply of road fuel and heating oil respectively.

I have been informed by the JCRA that whereas most persons have provided the JCRA with information on a voluntary basis, some persons have not been willing to do so. In order to undertake a market study, the JCRA requires access to all relevant information. This request provides the JCRA with powers under the provisions of Article 26(2) of the Competition (Jersey) Law 2005 (the “Law”).

The JCRA will complete this study under Article 6(4) of the Competition Regulatory Authority (Jersey) Law 2001 pursuant to the following terms.

The aims of the market investigation in relation to heating oil are twofold:

(1) to compare the costs of heating oil in the UK with the costs of heating oil in Jersey and explain the differences to a satisfactory degree.

(2) to assess whether there are indications that competition is not effective in Jersey, which will be reflected in comparatively high net margins.

I understand that the JCRA will endeavour to complete this project by June 2011 and the results of the market studies will assist the JCRA in its duties under the Law. The JCRA has the discretion to decide whether to publically publish any findings, the level of detail of the same and in what form any such report or publication will be published, balancing issues of accountability, effectiveness and confidentiality.

The JCRA will meet the cost of the review from its own resources. In the event that specific consultancy assistance is required, support for this specific cost may be sought.

Yours sincerely

Senator Alan Maclean

Economic Development Minister