Guernsey Electricity customers to be consulted on tariffs

Guernsey Electricity will use the information to feed into an application to change tariffs

Electricity customers in Guernsey have been asked about potential tariff changes, due to the "volatility of the global energy market".

Guernsey Electricity (GE) said it was looking to increase the standing charge by 65%, and put up the price of heating homes using electricity by 13%.

It said it was also asking customers for views on changing the tariffs for people with air source heat pumps.

A two-week consultation has been launched.

'Supply security'

The company has asked customers for their views because of "the volatility of the global energy market following the Russian invasion of Ukraine in 2022."

One proposal set out in the consultation is an increase in the customers' standing charge, from £30 to £49.50.

Another is to freeze the price people can sell electricity generated at their homes home back to the grid at 9.9p pKWH.

Chief financial officer Karl Brouard said: "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."

"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 and the need to maintain the security of electricity supply."

Mr Brouard added the island was "facing increases in the cost of imported energy, together with a rise in the cost of on-island generation at the power station".

The results of the consultation will feed into the final tariff application made to the States Trading Supervisory Board (STSB), which has the responsibility to assess and approve tariffs.

Last year, the STSB approved an application to allow GE to increase its tariffs to raise revenue by 9%.

The Environment and Infrastructure Committee said a new electricity strategy was to be debated before the end of March 2023, having previously said it would be in December 2022.

Committee president Lindsay de Sausmarez said work was "progressing well" on the strategy, with an aim to publish a policy letter on it "by the end of March 2023".

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