Overview of tariff increases
Electricity prices increased on 1st July 2024.
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.
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The primary standing charge will increase from £49.50 to £68.25 per quarter – an increase of around 20.5 pence per day.
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For the average domestic customer with electric heating, the overall increase will be approximately £63 per quarter.
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For the average domestic customer without electric heating, the overall increase will be approximately £37 per quarter.
Use our handy tariff calculator to find out how your tariff has changed.
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.
After rising to levels not seen locally for 30 years, inflation remains high, which is driving up costs, such as running the business day-to-day and investing in our infrastructure.
When we purchase energy from Europe, we do so at the best possible price thanks to our forward price-fixing arrangements. In recent years, our forward price fixing strategy has helped to shield Islanders from the significant price rises seen in the UK and other jurisdictions.
Our current contracts have cumulatively saved Islanders over £70m in the last 2 years. If these arrangements had not been put in place by Guernsey Electricity, Islanders would have seen tariffs rise by over 100%.
However, as these existing price fixes come to an end, the price of our electricity imports will start to increase to align with the prevailing international energy market prices, which remain well above historical average prices.
We are also investing in maintaining and upgrading our existing electricity infrastructure, such as our underground cable network and power station. Doing this in a planned way, through gradual and collective upgrades (where possible), helps to avoid longer emergency roadworks and power outages in the future.
Let's Talk Tariffs- What are they? what is a standing charge? and what do they pay for?
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.
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.
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.
Delaying investment into our island’s electricity network is not an option - to ensure we maintain even the current level of service requires millions of pounds to be invested into our essential infrastructure every year.
Passing today’s costs onto future generations is not sustainable - today’s customers should be paying for their part of today’s infrastructure costs.
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.
If you are worried, don’t hesitate to 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: 242 266 or pop into their office (no appointment necessary) on Bridge Avenue on the Bridge, St Sampsons.
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