Guernsey Electricity is very sensitive to the challenging economic situation everyone finds themselves in at present and as such has made every effort to prevent further strain on households and businesses through deferring or limiting any changes to its tariffs.
After seven years without any changes, last July an increase of 6.8% was implemented to cover historic uncontrollable costs.
A further rise of 4.8% was due to be introduced in April of this year but, recognising the impact of the pandemic on our community, we have delayed making this change to when more certainty exists around a return to more normal economic activity on the island. When implemented, it will enable us to recover uncontrollable historic costs from April 2019 – March 2020 relating to the price of oil and exchange rate movements during this period. We expect these adjustments to be made later this summer and will equate to an increase in the annual bill of an average Economy 12 customer of £50 per year.
This is the only agreed tariff rise and there are no further agreed tariffs increases.
Considering the current pandemic and expected consequential impact on our economy, we are also working with our shareholder, the States’ Trading Supervisory Board (STSB) exploring to explore alternative ways to recover these past costs rather than passing these through to electricity bills today.
Guernsey Electricity understand that the large increases in tariffs, like last year, can be difficult for households and businesses to accommodate so we continue to work with the Regulator and The States of Guernsey to change the mechanisms and approach to applying for tariff changes so that they can be significantly smaller and more regular to allow households and businesses to plan and budget for the changes.