Electricity Prices Could Rise By 14.25%

Guernsey Electricity says a second price rise in consecutive years is needed for investment in the network.

GE is proposing hikes to the fixed charge, that everyone pays, and the variable rate of supply that depends on usage.

Last July, prices went up by 9% with the company saying future rises would be at, or below, this level.

Karl Brouard, the chief financial officer, blames the proposed jump in prices on the war in Ukraine and unforeseen economic factors:

“Although local customers have been relatively insulated from the types of rises seen in the UK as a result of our forward price setting strategy, we are not immune from the wider geopolitical impact.

Coupled with inflation hitting the highest rate for 30 years, this means we are facing increases in the cost of imported energy together with a rise in the cost of on-Island generation at the power station.”

Mr Brouard says the wholly States-owned business will invest the money it makes from raising prices in the supply network:

“We realise that this comes at a time when the cost of living for everyone is increasing, but we cannot let these changes delay the planned investment in the network.

We must continue to power businesses, keep the Wi-Fi on and our homes warm today and just as importantly, into the future."

Guernsey Electricity is obliged to consult with customers before a price rise. It has launched an online consultation which you can access here. 

A rise of 14.25% would be well above inflation, which is running at 8.5% in Guernsey.

At this stage, a date for the price rise has not been given.