Overview of tariff increases
Electricity prices are changing from 1st July 2025.
We know that the cost of living is high, that is why we 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 £68.25 to £86.75 per quarter – an increase of around 20 pence per day.
- For the typical domestic customer with electric heating, the overall increase will be approximately £57 per quarter.
- For the typical domestic customer without electric heating, the overall increase will be approximately £35 per quarter.
Why do tariffs need to rise?
We want to be open with our customers about why electricity costs have risen, where your money is being spent, and how it's benefiting our island and the wider community.
- Higher electricity importation prices – We import around 90% of our annual electricity from France. Previously, we had locked in lower prices ahead of time, which protected islanders from the significant tariff increases seen in recent years across the UK. As these agreements end, we have faced higher costs than the fixed prices we’ve paid in the past.
- Inflation – Guernsey’s inflation rate remained high in 2024. This increased the cost of fossil fuels used by our power station generators to ‘top up’ Island demand and the parts needed to maintain our electricity network including assets such as underground cables and substations.
- Borrowing – Between 2010 and 2019, we were not allowed to raise electricity prices. This meant borrowing money to keep the lights on, and those unavoidable loans need to continue to be paid back with interest.
- Preparing for the future – We already invest over £12 million a year to maintain the electricity assets that keep Guernsey powered 24/7/365. We are also investing in the future today, planning for the energy transition required by our customers and the States’ Electricity Strategy.
Let's Talk Tariffs - What are they and what do they pay for? what is a standing charge?
To help keep the lights on, our homes warm and the Wi-Fi running, Guernsey Electricity collects tariffs from every customer on our electricity network.
Put simply, a tariff is the price used to calculate your electricity bill. Your bill is made up of a fixed standing charge to connect to our network, and a ‘unit charge’ based on the amount of electricity used and when you used it.
This is like a home phone bill; you pay a fixed connection charge (line rental) and another charge for time you spend on the phone.
What is a standing charge?
The electricity Standing Charge is the amount you pay per quarter to be connected to the electricity network, regardless of how much electricity you use.
It covers the fixed costs to Guernsey Electricity of supplying electricity to our customers – such as importing power from Europe or maintaining the electricity grid.
These types of charges are common across energy suppliers in all jurisdictions, and they are like the ‘line rental’ charge on a home phone bill.
Long term plans for fixed charges
We understand that many customers consider it unfair that, for example, a one-bedroom apartment pays the same fixed charge for their electricity supply as a large five-bedroom property regardless of the strain they place on the electricity grid.
We agree, and this is why our long-term plan is to reform how customers – particularly those who place a lower strain on the island’s electricity network – pay for their electricity.
However, we cannot change this overnight because we require the next generation of electricity meters and further enhancements to our billing systems to support multiple standing charge options.
What is really important as we make these changes is that we continue to invest in our island’s electricity network and infrastructure, to fund essential maintenance and upgrades. This year’s standing charge increase means that 15% of our income is now generated from fixed charges to help fund this activity.
The next step will be to undertake a comprehensive cost reflectivity exercise to examine how fixed costs charged to individual customers should be more proportionate to the strain those customers place on the network.
We have fully assessed options for the next generation of meters, and we are developing plans to replace our commercial meter assets this summer, whilst looking at options for our domestic metering estate.
We continue to engage with key customer groups on these changes.
The standing charge covers the fixed costs to Guernsey Electricity of supplying electricity to our customers.
Tariffs help to keep our island running in more ways than one.
Whether it’s importing low-carbon electricity through the subsea cable, running the fossil fuel power station, maintaining over one million meters of cable that make up our electricity grid, keeping our streets well-lit, or investing in our dedicated and reliable workforce – tariffs help keep the lights on and our homes warm.
Watch our electricity tariff breakdown video here.
Watch our short video breaking down what tariffs help pay for.
What support is available for those struggling to pay their bill?
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. Getting in touch early means we can find the best solutions for your needs and provide peace of mind.
Call our 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: 01481 242266
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