Electricity prices in Guernsey to increase again

The price of electricity in Guernsey is set to increase in July.

The States of Guernsey said the States' Trading Supervisory Board (STSB) granted Guernsey Electricity an increase of 5% to be split between the charge per unit and the fixed standing charge. It had applied for a 6% increase but STSB said it recognised the current affordability pressure islanders faced.

The States said households using the least electricity would see the lowest bill increase because standing charges would only rise by 3%.

It added the additional revenue would come though unit charges which would go up between 5% and 7% and households with the highest energy usage would see their costs increase more.

This is the latest in a number of prices rises in recent years.

States of Guernsey said under STSB's zero dividend policy for Guernsey Electricity (GE), any surplus the company generated would be reinvested in the islands electricity infrastructure.

Additionally, as part of its 2026 tariff application, GE set out plans to invest more than £150m between 2026 and 2030.

A third of that would be spent on maintaining and upgrading the current network infrastructure, the States said.

It added the company was preparing for projects including the replacement of one the cables providing the island's current connection to the European grid and, subject to States approval later this year, increasing import capacity by installing a new interconnector.

It said the investment plan would be funded through a combination of customer charges and borrowings, so that the cost was spread between current and future electricity customers.

Alan Bates, GE's chief executive officer, said inflation of 4% meant it was costing them more to supply islanders with electricity, and this is reflected in the price rise.

He said: "Running an electricity network and power station is expensive and our equipment needs constant investment to make sure it works properly when needed."

He added: "We already spend around £12m a year replacing equipment as it reaches end of life, but we need to keep investing even more money in upgrading our electricity infrastructure to prepare for the future.

"In 2026 we expect to spend around £15m on capital investment."

Bates said the company had listened to feedback from customers in recent years who found increases to the standing charge unfair.

For the typical domestic customer with electric heating, the overall increase will be approximately £3 per week and those without without electric heating would see an overall increase of approximately £1.55 per week, GE said.

GE said it would provide a tariff calculator on its website.

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