Electricity bills in Guernsey to rise after increase approved

The rise is below the 14.25% increase that the company had requested

Bills are set to rise after the States allowed Guernsey Electricity to increase its revenues by 13%.

The States' Trading Supervisory Board (STSB) said the increase would be split between the charge per unit and the daily fixed standing charge.

The rise is below the 14.25% increase the company requested.

STSB President, Deputy Peter Roffey, said the increase was "regrettable but unavoidable".

The additional revenue will fund "essential investment in the island's electricity infrastructure and offset the escalating cost of electricity import and generation arising from the market volatility caused by the Russian invasion of Ukraine", the States said.

In the past 12 months, those costs incurred by the company have increased by £3.3m above what had been forecast in 2022, it added.

'Significant increase'

Karl Brouard, Guernsey Electricity's chief financial officer, said: "For the average usage customer on the standard or economy tariffs, both without electric heating, the combined impact of these changes is a rise of around £200 per year per household.

"We understand that this comes at a time when the cost of living is increasing for everyone, but we cannot delay much needed investment and upgrading of the network, along with the requirement to maintain the security of electricity supply to the island."

Deputy Roffey said: "It is regrettable that Guernsey Electricity had to apply for such a significant increase in tariffs, but this is a nettle that had to be grasped."

He said "a rise is unavoidable. We recognise the timing is bad, but to put it off could simply store up even greater challenges in the years ahead".

'Current economic climate'

In deciding on a lower increase than the company had requested, the STSB said it had considered the impact on consumers "in particular during the current economic climate".

"The STSB has therefore acted responsibly in approving an increase, although not to the level that Guernsey Electricity had requested, which will require the company to continue focusing on improving efficiency," he said.

The STSB also took independent advice and considered the results of a public consultation.

Electricity bills will increase from 1 July.

Follow BBC Guernsey on Twitter and Facebook. Send your story ideas to [e-mail].