Committee for the Environment & Infrastructure - P.2020/47
The States are asked to decide whether, after consideration of the policy letter entitled "States of Guernsey Energy Policy 2020-2050" dated 28th February 2020 they are of the opinion:
1. To agree the overall objectives of the Energy Policy as:
- Security and resilience of supply;
- Consumer value and choice;
- Equity and fairness;
- Supportive of a vibrant economy; and
- Greater energy independence.
2. To agree the vision for Guernsey's energy future as set out in paragraph 2.1 of the policy letter and prioritise opportunities to reduce emissions.
3. To agree to adopt a target of net zero emissions by 2050 and to adopt an interim target of reducing emissions by 57% on 1990 levels by 2030.
4. To direct the Committee for the Environment & Infrastructure to
(a) provide a definition of what constitutes a "low carbon" and "low emission" source for on-island energy sources by Q4 2020; and
(b) establish a target for the generation of on-island (where "on-island" includes within our territorial waters) renewable energy by Q2 2021.
5. To agree to revise the requirements for the dispatch of electricity by Guernsey Electricity Limited (known as the "merit order") to place any pre-committed energy production, prioritising on-island renewable generation, ahead of flexible dispatchable production and to direct the Committee for Economic Development to bring proposals to the States of Deliberation to give directions to the relevant regulator.
6. To direct the Committee forEconomic Development, working with the Committee for the Environment & Infrastructure, to undertake a technical consultation on:
(a) a licensing framework for targeted competition to support establishing on-island (including off-shore) renewable energy; and
(b) the introduction of licensing for the supply of hydrocarbons particularly in relation to hydrocarbon security of supply and emissions reduction,
and to bring proposals to the States of Deliberation to give directions on these matters to the relevant regulator in these matters by Q4 2021.
7. To direct the Committee for Economic Development to bring proposals to the States of Deliberation to give directions to the relevant regulator to ensure continuity of current arrangements relating to electricity production (for example, by renewing the licence of Guernsey Electricity Limited) where the relevant regulator is not in a position to issue licences under any revised framework as outlined in proposition upon the expiry of current licences.
8. To approve the cable strategy set out in 8.17 and agree in principle the need for a second interconnector, subject to the consideration of a full business case; and to direct the States Trading Supervisory Board via Guernsey Electricity Limited to revert to the States of Deliberation with the full business case, the cost of developing which can be reflected and recovered by Guernsey Electricity Limited through its charges.
9. To agree in principle the future move from N-2 to N-1 (or another standard as deemed appropriate), subject both to the completion of the second interconnector, and to the States' endorsement of an updated electricity strategy to be brought to the States of Deliberation by the Committee for the Environment & Infrastructure.
10. To agree the separation of the hydrocarbon programme into three work streams:
(a) Energy Policy and Climate Change policy (the Committee for theEnvironment & Infrastructure);
(b) The States Trading and Supervisory Board's St Peter Port Harbour Development Programme due to report to the States of Deliberation by December 2020 that will be informed by the Energy Policy and will include hydrocarbon requirements; and
(c) A support programme working with energy providers for interim supply solutions (the Committee for theEnvironment & Infrastructure to report back by Q2 2021).
11. To direct the Committee for the Environment & Infrastructure to establish the public-private Energy Partnership by Q4 2020.
12. To direct the Committee for Economic Development to undertake a review of structures for cost reflective tariffs (including reflecting fixed and variable costs), to bring proposals to the States of Deliberation to give directions to the relevant regulator by Q4 2020.
13. To direct the Committee for Employment & Social Security working with the Committee for the Environment & Infrastructure to co-ordinate an investigation of the most effective means of addressing energy poverty and report back to the States by the Q2 2021.
14. To direct the Committee for the Environment & Infrastructure to work with the Development & Planning Authority to bring forward further recommendations to improve the energy efficiency of existing and future housing stock, assess the potential for and impact of requirements to report building energy efficiency standards and/or to implement a minimum standard for the rental market and a reporting standard for the sales market by the end of Q2 2021.
15. To direct the Committee for the Environment & Infrastructure, working with the Policy & Resources Committee, to review the position on the introduction of energy related taxes, to deliver on the policy's aims, and bring any recommendation to the States of Deliberation by May 2023.
16. To note the resource implications set out in paragraphs 11.2 to 11.18 and that any requests for additional budget be submitted through the appropriate budget setting or capital prioritisation process.
17. To rescind the following Resolutions of the States or parts thereof:
(a) Resolution 11(d) of Article XIV of Billet d'État XV of 2011 "Review of Utility Regulation";
(b) Resolution 4 of Article III of Billet d'État XII of 2014 "Guernsey Electricity Supply - Future Strategy"; and
(c) Resolution 2 of Article IX of Billet d'État VII of 2016 "Comprehensive Social Welfare Benefits Model".
18. To amend the following Resolutions of the States:
(a) Resolution 1 of Article III of Billet d'État VI of 2015 "Alternative Framework for the Oversight of Guernsey Electricity Limited and Guernsey Post Limited" to:
(i) delete "Guernsey Electricity Limited and" and "respective electricity and"; and
(ii) substitute "law" for "laws"; and
(b) Resolutions 1 and 2 of Article XVII of Billet d'État III of 2016 "Legislative changes relating to the future oversight of Guernsey Electricity Limited and Guernsey Post Limited" to delete:
(i) in resolution 1, "and electricity"; and
(ii) in resolution 2, "the Electricity (Guernsey) Law, 2001 and" on both occasions it appears
The above propositions have been submitted to Her Majesty's Procureur for advice on any legal or constitutional implications in accordance with Rule 4(1) of the Rules of Procedure of the States of Deliberation and their Committees.