Thought Pieces
4 minutes
12/09/2024
Q&A with Alan Bates, Non-Executive Director
Can you tell us about your career path in the energy and infrastructure sectors over the past three decades?
I am currently the CEO of Guernsey Electricity here in the Channel Islands, but I wear multiple hats. I also serve on the Board of Alderney Electricity and Guernsey Water. My career began quite differently – I left school at 16 when I joined the Merchant Navy with P&O/Princess Cruises, where I developed a solid understanding of operations and engineering. After spending several years at sea, I transitioned to the energy sector. This was during the 90s when asset management was evolving, and I developed a deep interest in sustainable investment in infrastructure . By the mid-to-late 90s, I moved into utilities, starting with electricity and later expanding into gas industries. My work spanned across the Channel Islands and extended into Europe, before I returned to Guernsey in 2010 to take on my current role. Over the years, I’ve developed deep expertise in managing different types of assets associated with the energy sector and a strong understanding of risk management—key areas that are critical to the industry’s success.
You’ve been instrumental in shaping Guernsey's energy policy. What is the biggest challenge and opportunity that you’re seeing in the green energy transition?
A lot of people are understandably worried about the energy transition, and that it might lead to higher costs and more disruption for consumers. But what we’re actually seeing – both locally and in larger jurisdictions – is that doing the right thing such as decarbonising, creates more stable energy prices and a greater ability to use energy efficiently which would benefit consumers in the long-run. The real challenge is mapping out how to reach our 2050 net zero goals, and it’s important to remember that the energy transition is a journey – it isn’t something where we can achieve overnight success. At FGEN, we've created a comprehensive strategy to guide the transition of all our assets towards sustainability.
Can you elaborate on your role and responsibilities as the Chair of the Risk Committee at FGEN?
As Chair of the Risk Committee, my focus is on ensuring our risk management framework is effective and adds real value. We maintain risk registers that identify potential risks to the Company and its underlying asses and we're aligning with the latest Financial Reporting Council guidance on risk management to ensure our system isn't just theoretical but practical and impactful. I believe a robust and proactive approach to risk management not only enhances stakeholder confidence but also positively impacts performance. We have created a risk-aware culture within FGEN, this involves education and training on risk identification and assessment and fostering a culture of accountability for managing risk.
What does corporate governance mean to you?
I see corporate governance as an opportunity, not a threat. When done right, it’s an effective tool to build trust and confidence by demonstrating that the Board and the investment managers know how to apply proper controls. Effective risk management is part of this – it’s about having a robust and pragmatic framework that not only identifies and mitigates risks but also ensures the controls are functioning as intended. A concept from the nuclear industry that I find relevant is the “tolerability of risk” which acknowledges that, while you can’t eliminate all risks, you must manage them within acceptable limits. The goal is to understand and manage risks effectively, rather than trying to eliminate them entirely. This approach is particularly crucial in the energy industry.
What are you passionate about outside of work?
I’ve always been deeply connected to the sea. Sailing is my biggest passion – there’s nothing quite like being out on the water, watching dolphins play around the boat. Besides that, I’m an avid gardener. I grow a variety of vegetables in my greenhouse and find it’s incredibly rewarding to grow something in a pretty organic way, creating a little haven for wildlife such as hedgehogs, bees and birds at home.