Guernsey Electricity Ltd. has announced that electricity prices for households on the island will increase significantly from July 2025, with average costs rising by up to 117% compared to 2021 levels. The move comes as the utility seeks to address infrastructure underinvestment and adapt to end of fixed-price agreements for imported electricity.
Rising Costs
From July, a typical low-usage household in Guernsey will spend approximately ยฃ637 per year on electricity. This marks a significant increase when compared to electricity costs in England, Scotland, and Wales, where households are expected to save between ยฃ7 and ยฃ123 per year, or 1% to 19% less than in Guernsey. In contrast, heavy electricity consumers in Guernsey may benefit, with a high-usage household forecasted to pay about ยฃ1,503 annuallyโlower than the anticipated ยฃ42 to ยฃ244 extra per year that similar households in the UK will incur.
Guernsey Electricity Ltd. (GEL) has stated that comparisons between the islandโs electricity prices and those in the UK can be complex due to differences in pricing models and tariff structures.
Factors Behind the Increase
The price changes come after a period of stable electricity costs from 2012 to 2019, leading to steep increases as GEL attempts to rectify decades of underinvestment. Chief Executive Alan Bates noted that the previous yearsโ low prices were artificially maintained, ultimately affecting the companyโs ability to invest in necessary infrastructure.
GEL sources about 90% of its electricity from France via a subsea cable, while the remainder is generated locally using natural gas, diesel, and oil. With the termination of a fixed-price agreement with EDF, the French state-owned energy company, GEL will now face higher costs that will be passed on to customers. The latest price rise, which is reported to be 8%, is attributed to various factors, including inflation and the need for decarbonisation.
Consumer Experience and Concerns
Local resident Alexandra Gelder expressed her concerns about rising bills, stating that her family pays nearly ยฃ200 monthly despite seldom being home. โI love this island, it is beautiful โ but to afford to live here sucks,โ she lamented, highlighting the challenges of maintaining warmth and comfort in her home during winter months.
Citizens Advice Guernsey has indicated a growing worry regarding increased utility costs. While they have not yet seen an uptick in people requesting assistance with electricity prices, they are preparing for a surge in inquiries as the new tariffs take effect. A spokesperson advised anyone affected to seek guidance early.
Future Outlook
In light of these challenges, GEL has encouraged consumers to consider switching to its โSuper Economy 12 tariff,โ which could provide savings of approximately ยฃ270 annually. Furthermore, the company offers a 2% discount for standing order payments.
In terms of standing charges, which cover the costs of connecting to the electricity supply, GELโs fees have seen a substantial rise of over 380% since 2021. From July, the standing charge will increase from ยฃ68.25 to ยฃ86.75 per quarter.
Moving forward, GEL plans to reassess how it structures electricity pricing to ensure sustainability, particularly given the evolving landscape of renewable energy usage among residents. However, they have acknowledged that implementation of any changes will require modernizing the electricity meter infrastructure.
GEL ensured that its current tariffs continue to provide a reliable electricity supply, maintaining a near perfect uptime of 99.9% throughout the year, despite the challenges posed by increasing operational costs and market fluctuations.
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