Overview of tariff increases
Electricity prices will change from 1st July 2026
We know this is not news anyone will welcome.
Any increase in household bills puts extra strain on islanders' finances, especially when people are already feeling the pressure of rising costs across a range of areas.
How much will my electricity bill go up by?
- For the typical domestic customer with electric heating, the overall increase will be approximately £3 per week.
- For the typical domestic customer without electric heating, the overall increase will be approximately £1.55 per week.
What about the standing charge?
The increase to the standing charge has been kept as low as possible and significantly lower than increases in previous years.
The primary standing charge will increase from £86.75 to £89.35 per quarter – an increase of around 3 pence per day.
Why are electricity prices going up?
We want to be upfront about the reasons for this increase and how the money from your electricity bill gets spent.
There are two primary reasons for this increase.
- Investment – Running an electricity network and power station is expensive and our equipment needs constant investment to make sure it works properly when needed.
We already spend around £12m a year just replacing our existing equipment as it reaches the end of its life.
We need to keep investing even more money in upgrading our electricity infrastructure and to prepare for the future.
In 2026 we have forecast spending around £15m on capital investment. This year’s additional investment requirements include planning for a second interconnector and beginning to roll out new electricity meters.
- Inflation – Inflation is the rate that average prices are increasing across a range of good and services in Guernsey.
Inflation in Guernsey is still relatively high, at 4%.
This means that it costs us more to supply Guernsey with electricity, as the price of goods and services we purchase to run the business continues to rise.
What is Guernsey Electricity doing to limit price rises?
We are working to run the business as efficiently as possible and to reduce costs wherever we can – we saved over £500k across a range of areas in the 15-month period ending 31 December 2025, and we will continue to seek out efficiencies to help limit future tariff rises.
Let's Talk Tariffs - What are they and what do they pay for?
To keep your lights on and the Wi-Fi running, we charge for the electricity you use through 'tariffs.'
This is the price we use to work out your electricity bill. Most bills are made up of two parts:
- Standing charge: A fixed daily cost to keep your home connected to the island’s electricity grid
- Unit charge: The cost for the actual electricity you use.
It’s very similar to a mobile or landline bill: you pay a set amount for the connection (line rental), and then a separate amount for the data or minutes you actually use.
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 a fixed cost for being connected to the grid 24/7.
It represents a contribution towards the essential infrastructure that we must actively maintain to provide customers with electricity whenever they need it.
This includes:
- Running the power station so it’s ready whenever the island needs extra electricity
- Maintaining thousands of kilometres of cables (both under the sea and under our streets)
- Repairing and upgrading substations in your local neighbourhood
Whether a customer with a connection into the grid is using a lot or a small amount of electricity, there is a cost to ensuring that connection is ready to supply electricity 24 hours a day, 365 days a year.
Long term plans
We know customers would like to see us change the way we recover the standing charge, to make it fairer.
We remain committed to reforming the standing charge, and we'll provide more detail on those plans later this year.
The standing charge covers the fixed costs to Guernsey Electricity of supplying electricity to our customers.
As a Guernsey-owned company, the money we make stays right here on the island supporting local jobs, building our infrastructure, and making sure our energy future is secure.
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, or investing in our dedicated and reliable workforce – tariffs help keep the lights on and our homes warm.
Further details are provided in a 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