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Will Guernsey be affected by the energy crisis in Europe?

Guernsey Electricity wish to reassure its customers, that thanks to our price fixing strategy, Guernsey customers are sheltered from these current price increases.

The UK is experiencing price increases as a direct result of the war between Russia and Ukraine which has reduced available gas supplies, this is coupled with an increase in demand for gas as covid restrictions ease, with the average cost for a household predicted to reach over £4000.

Guernsey Electricity wish to reassure its customers, that thanks to our price fixing strategy, Guernsey customers are sheltered from these current price increases.

Through the Channel Island Electricity Grid - a joint venture company with Jersey Electricity - Guernsey Electricity forward purchases a large proportion of its imported electricity up to three years in advance, thus protecting customers from the current volatile prices in the energy market.

The change to tariffs applied earlier this year were to increase revenue by 9% to allow investment in the network, not to cover changes in energy prices.

Will tariffs be going up as energy prices increase this winter?

UK electricity prices are currently almost 40% more than those of Guernsey and are forecast to rise further on 1st October.

The energy crisis is really adding to the cost-of-living crisis – and UK households are going to be struggling this winter. Customers in the UK are predicted to be spending over £4,000 on energy a year, which if correct, is around double the average Guernsey household with electric heating. 

  • UK cost per unit - 28.34 pence per unit* 
  • Guernsey cost per unit - 20.77 pence per unit on the Standard tariff.

We have been able to shelter our customers from similar levels of increase seen in the UK and have no plans to change tariffs based on the commodity market this winter. We continue to closely monitor the situation to best mitigate any future impacts in the event that the unprecedented volatility is sustained in the longer term. 

What happens when the current contract runs out?

This will depend on a range of factors, in particular the extent of the on-going war and its impact on future energy markets, and we will continue to do all we can to protect customers.

Is the island planning for outages?

Global energy supply and consumption is not evenly distributed. Some places have an energy surplus, whereas others have an energy deficit.

Europe relies heavily on supplies from Russia, and the war between Russia and Ukraine has affected these supplies, alongside the increase in demand for gas following the easing of covid restrictions.

This increase in demand is not being met by an increase in supply, which means many countries are planning for potentially not having enough energy to meet their needs under severe winter conditions. Many countries in Europe are prudently preparing for planned outages. Whilst we are not planning for unexpected outages this winter, we continue to remain prepared for such an eventuality. We are working very closely with our provider in Europe to ensure the island’s supply continues as expected.

The power station remains available to use as a means of producing electricity on-island, providing Guernsey with a high level of security of supply. Unfortunately, should our importation of electricity be affected, and we are required to use the power station to continue to meet demand, then the additional costs associated with on-island generation, predominantly in relation to low Sulphur fuel oil, would negatively impact the cost of electricity.

But there are ways to help effectively manage your energy use, which in turn can help you save money, and indeed the planet. Follow more of our tips and advice for straightforward ways to save energy, lower your bills and reduce your carbon footprint. We’re all responsible for the energy we use in our homes. 

 

Manage your energy use

 

*UK cost per unit as of 18.8.22