Tariff Changes from 1st July 2024 | Guernsey Electricity

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Tariff Changes from 1st July 2024

Electricity tariffs are to rise on 01 July 2024 after the States Trading Supervisory Board (STSB) approved a 10% revenue increase.

Overview of increases

We know that the cost of living is high, and we have worked hard to keep this year’s increase as low as possible to try and minimise the impact on Islanders.

The primary standing charge will increase from £49.50 to £68.25 per quarter – an increase of around 20.5 pence per day.
For the average domestic customer with electric heating, the overall increase will be approximately £63 per quarter
For the average domestic customer without electric heating, the overall increase will be approximately £37 per quarter. 

Why do tariffs need to rise?

We understand that any increase to electricity tariffs can be concerning. That’s why we want to be open about why costs have risen, where your money is being spent, and how it's benefiting our island and the wider community.

When we purchase energy from Europe, we do so at the best possible price thanks to our forward price-fixing arrangements. In recent years, our forward price fixing strategy has helped to shield Islanders from the significant price rises seen in the UK and other jurisdictions.

Our current contracts have cumulatively saved Islanders over £70m in the last 2 years. If these arrangements had not been put in place by Guernsey Electricity, Islanders would have seen tariffs rise by over 100%. 

However, as these existing price fixes come to an end, the price of our electricity imports will start to increase to align with the prevailing international energy market prices, which remain well above historical average prices.  

We are also investing in maintaining and upgrading our existing electricity infrastructure, such as our underground cable network and power station.  Doing this in a planned way, through gradual and collective upgrades (where possible), helps to avoid longer emergency roadworks and power outages in the future.

In response to the decision by the States of Guernsey to implement the Electricity Strategy, which sets out a pathway to secure low-carbon electricity, it is essential that we plan how to implement this in the coming years.

Our core focus is ensuring Guernsey continues to have a stable and reliable supply of electricity. Delaying investment and borrowing more is not a sustainable option – we must start to recover today's costs from today’s customer and not pass those costs onto tomorrow’s electricity consumers. 

We understand that the cost of living is high, and we have made every effort to minimise this increase as much as possible. We are also taking on additional debt this year to share the burden.

What does this mean for me?

To help you understand how these changes will impact your bills, we have a user-friendly tariff calculator. This tool offers an estimate of you new electricity costs based on your previous electricity usage.

What support is available for those struggling to pay their bill?

The first thing to do is contact us as soon as you are worried you may fall into difficulty. We’re here to support you if you need help paying for your electricity bills or managing your account.

Our friendly and experienced team can help you manage your usage, offer advice, and connect you with other organisations that may be able to help.

Please call our dedicated Customer Service team on 01481 200700 or email customer@electricity.gg.

There are further independent services available for those who may be struggling

Citizens Advice Offer free and confidential advice service.

Contact: 242 266 or pop into their office (no appointment necessary) on Bridge Avenue on the Bridge, St Sampsons.

Guernsey Welfare Service – Offer a non-judgmental, confidential service.

 Contact: 07839 724300

Age Concern – Provide support and social events for older members of the community.

Contact: 01481 263228

Further Details

In determining the tariff application, the STSB considered a range of factors, including a consultation exercise conducted by Guernsey Electricity with representatives from charities and other support organisations.

The STSB also commissioned an independent efficiency study, which found that our efficiency compared well with Jersey Electricity and Manx Utilities in the Isle of Man. It also noted that our efficiency has further improved compared to our island counterparts over the last 12 months of data reviewed.

In a separate independent study STSB commissioned by the STSB to examine tariffs, it was found that in 2022 electricity bills in Guernsey were significantly lower than in the UK, and that Jersey was the only place in the British Isles where customers on a standard tariff paid less for their power. For those on economy tariffs, Guernsey was fourth cheapest, behind Jersey, a Northern Ireland supplier, and only slightly higher than the Isle of Man.

Our team work hard to ensure that we are operating efficiently and offering our customers not only a secure and reliable supply of electricity, but also value for money and a drive to reduce our operating costs wherever possible.

1st July 2024- Electricity Tariff Details