Unlike UK power suppliers, we're responsible for all the stages of Guernsey's electricity supply. Let's explore what your tariff money pays for.
Generation and importation
We import low-carbon electricity from the European grid and generate top-up electricity at the Vale power station. We also run several community ‘solar arrays’ on-island that feed renewable electricity directly into the grid.
Transmission
We transport high-voltage electricity around the island from generation and importation sites to 'bulk supply points'.
Above is a photo of a 'bulk supply point' which you may have seen by Cambridge Park at Beau Sejour
Distribution
Our underground cable network delivers power to every home and business.
Retail
Finally, much like UK power suppliers, we sell electricity directly to customers, manage bills and customer service. We then collect money from every customer who uses the electricity network to help keep the lights on, homes warm, and Wi-Fi running.
A tariff isn't just about the power you use - it's about how power gets to you, metering, and billing. They pay for everything.
Where does my tariff money go?
It’s electricity bills that help keep Guernsey’s modern life in motion. Behind the scenes, there’s a huge amount going on to make sure you instantly get the power you need at the flick of a switch.
How do we meet Guernsey’s annual electricity demand?
Tariffs pay for low-carbon electricity imported through a subsea cable that links us to the European grid
via Jersey.
Guernsey Electricity's contract with EDF Energy allows us to import this electricity, with hedging strategies in place to manage currency exchange and energy price risks. By using financial instruments such as forward contracts and commodity hedges, we can stabilise costs and ensure predictable pricing for customers despite energy market fluctuations.
In recent years, our forward price fixing strategy has helped shield Islanders from the significant price rises seen in the UK and other jurisdictions. In fact, our contract with EDF cumulatively saved islanders over £70m over the last three years.
Without them, islanders would have seen tariffs rise by over 100%.
The fossil-fuel power station
We need a reliable back-up and top-up source when islander’s demand exceeds the subsea cable’s 60 Megawatt (MW) capacity.
Our power station is kept ready to start rapidly at any time – 24 hours a day, 365 days a year.
This also means during summer, we must do routine maintenance on the power station and fuel tank farm to make sure they're ready to generate power if needed. This is the reason why you might sometimes see smoke coming from the chimneys during summer.
Investing in the subsea cable maintenance
We need to make sure our connection to Europe is reliable so we can enjoy a stable, secure and affordable
source of power.
Maintaining over one-million meters of electricity grid cabling
This includes closing roads to repair faults in cables that cause power outages, and developing new areas
of power supply to meet the ever-evolving demands on electricity.
Renewing the grid
We do this by laying new underground ‘electricity distribution’ cables to prepare for Guernsey's increase in electricity demand.
In 2024, you may recall we replaced hundreds of metres of cable including priority projects in Doyle Road, the St Peter Port High Street, and Commercial Arcade. Plus we also maintain 'substations' which are there to adjust and distribute power safely to your home.
Streetlighting
We’re also modernising the island’s streetlights through upgrading controllers and bulbs, helping to improve
safety and reduce energy consumption.
Reinforcing the local network
We're expanding the network to bring more power to your area. This includes 'Bulk Supply Point' projects
designed to take large amounts of electricity from our imports and power station and distribute it safely at a
lower voltage.
- "Bulk supply points", which take large amounts of electricity from power plants
- "Substations" are smaller and are there to adjust and distribute power safely to your home
You've probably seen 'substation' units like this dotted around the island.
Meter replacement project
With around 38,500 meters across our 30,000 electricity customers, we’ve got a big task on our hands.
We'll be rolling out new smart meters to provide customers with a better experience, starting this year with
commercial meters.
Investing in the driving force behind real life
From helping customers over the phone, reading meters, project planning, fixing cables, to managing engines and monitoring the network from our control room, it’s our people who help keep the island running. This is the mix that helps maintain a secure supply of energy to the island both today and into the future.
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