The changes are in line with the aims of the States’ Energy Policy of reducing the Island’s carbon footprint over the next three decades and follows the recent Policy Letter which means price alterations will be agreed by the States Trading Supervisory Board in future and not by the Guernsey Competition Regulatory Authority. Previously, any changes in rates to consumers had to be approved by the regulator.

Alan Bates, Guernsey Electricity’s CEO, said: ‘The change in policy is very important as it will allow us to start offering tariffs that suit the needs of all of our customers. The current structure is woefully out of date, does not allow us to offer any incentives and is also not reflective of the true costs of providing the electricity network.’

‘Our intention is for any restructure to be revenue neutral, so that for the vast majority of customers, there will be minimal difference to their overall bills for electricity.’

The company’s proposals include the introduction of lower tariffs at weekends so Islanders can take advantage of reduced rates when it is convenient. Other changes will see an increase in the connection or standing charge to consumers and a corresponding reduction in the cost per unit of electricity.

Mr Bates added: ‘We firmly believe that the energy sector should take the lead in creating a more sustainable world in which to live and at the same time help tackle climate change. Last year, we took the first step in transitioning the Island to a greener future by importing 100% renewable and sustainable electricity, so the evolution of our tariffs is all part of this process.’

Guernsey Electricity’s long-term strategy is for an energy system that supports renewables and reduces the reliance on fossil fuels which would see the power station deployed for emergency generation only.

The approved new policy also included a delay on the proposed deregulation of the electricity network, giving the States more time to secure and plan for the Island’s long-term energy policy.