Days of cheap electricity in Guernsey are over says deputy

The current deal with EDF, which sees power imported via undersea cables, is set to run out in 2028

The politician with oversight of Guernsey Electricity has warned "the days of cheap electricity" are over.

Prices have increased by 13% this year and by 9% in 2022.

States Trading Supervisory Board (STSB) President Deputy Peter Roffey told deputies it was because of the end of the contract with EDF and the need for investment in local infrastructure.

The deal with EDF provides power at a lower rate than the wholesale price in France, via undersea cables.

The current deal with EDF is set to run out in 2028.

Mr Roffey said without this agreement electricity prices in Guernsey would have gone up by more than 100% since the deal was signed in 2011.

"There are two main drivers behind the need for higher prices, one is the need to invest in robust electricity infrastructure.

"The other reason is that from 2028 we will be under a new contract for either buying electricity from France, or some other supplier in Europe.

"Internationally energy prices have moved and that will inevitably bring cost pressures as well."

In a States debate on Guernsey Electricity's annual report Mr Roffey also told deputies that an independent review had found directors' bonuses at the utility were "below market value".

The utility has not published the value of bonuses for 2022 in its annual report.

He said: "The bonus scheme is slightly less competitive than others, which I found interesting given the attention it has seen from some of my colleagues in recent years."

The independent review also found the pay for directors at the utility was appropriate.

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