Electricity prices set to rise to support projects

Guernsey Electricity chief executive Alan Bates said investment plans were likely to push tariffs for customers up

Prices should remain "fairly static" despite the likelihood of tariff increases on the way, Guernsey Electricity's chief executive has said.

The firm's annual report, covering a 15-month period up to 31 December 2024, said funding remained a "core area of attention" as it balanced the need to raise tariffs and securing additional borrowing for investments.

The company said price rises were "necessary" to support ongoing projects in Guernsey, including maintaining and upgrading power stations and the underground cable network.

Alan Bates said while tariffs were set to go up, future prices were looking "very similar" to current levels.

On 1 July, Guernsey Electricity (GEL) increased tariffs by 8% - split between the charge per unit of electricity and the fixed standing charge - after the States' Trading Supervisory Board (STSB) granted them permission to do so.

The STSB also approved a 2.5% increase in quarterly standing charges from 12.5% to 15%.

Analysis by the BBC using GEL's tariff calculator and data from Uswitch suggested a low-usage household in Guernsey would spend an average of £637 a year on electricity from July, while high usage households would spend £1,503 a year on average.

Mr Bates said prices were driven by two main factors - wholesale markets and investment plans.

"It's actually the investment plans that are going to start putting prices up," he said.

Guernsey Electricity increased tariffs for customers on 1 July

Mr Bates said there had been a "catch-up" period on prices after a 10-year period of no increases ended in 2019.

He said other elements, including the war in Ukraine's impact on supplies, put pressure on energy firms.

Mr Bates said GEL were getting into a "much more certain period" and could start to see how future prices might evolve.

He added fixed-price contracts, which had shielded customers from significant tariff increases, were set to end in 2027, but was hopeful future rises would not be too high.

"The future prices we're seeing are fairly static and looking quite good," Mr Bates said.

"They're probably very similar to what we're seeing today."