Jersey Electricity and Guernsey Electricity have secured a new four-year electricity supply agreement with EDF.
The agreement, reached through their partnership in the Channel Islands Electricity Grid, will take effect on 1 January 2028 when the current arrangement ends. It will provide continued access to low-carbon electricity from France for both islands.
More than 90% of Guernsey’s annual electricity demand is met through imports via the subsea cable network. Jersey also imports the significant majority of its electricity from France, principally from low-carbon nuclear and renewable generation.
The new agreement allows both companies to continue using forward purchasing and hedging arrangements to help manage wholesale energy price fluctuations and their impact on customers. Jersey Electricity said it also provides greater flexibility over the timing and management of future electricity purchases.
Alan Bates, Chief Executive Officer at Guernsey Electricity, said: “We are delighted to have agreed this contract with EDF.
“It builds on our established relationship and demonstrates our commitment to continue working together to power our island.
“This agreement means that, from 1 January 2028, Guernsey will continue to benefit from imported low-carbon electricity from the European grid.
“Importing low-carbon electricity enables us to lower Guernsey’s carbon emissions and reduce our use of the fossil-fuel Vale Power Station. We can also import low-carbon electricity at a price generally lower than that of generating on-island, which helps to manage the impact of electricity prices on islanders.
“When we purchase electricity from Europe, we use forward price hedging arrangements to help mitigate against any price volatility in wholesale energy markets and to ultimately smooth out the immediate impact on electricity tariffs locally. The new contract allows the continuation of such forward hedging.”
Jersey Electricity Chief Executive Chris Ambler said: “This is good news for Jersey and gives us long-term confidence in the security of the Island’s electricity supply. We have enjoyed a strong relationship with EDF over many years, and this agreement provides continuity beyond 2027 while also giving us greater flexibility in how we manage our future energy requirements.
“One of our priorities throughout the negotiations has been to ensure that we retain the ability to manage electricity purchasing carefully and responsibly. Energy markets will inevitably move over time but having a supply framework and the flexibility to manage when and how we purchase electricity puts us in a strong position.
“Our customers have benefited for many years from secure, low-carbon electricity from France and the new agreement provides a sound basis for that to continue.”
Chris Ambler said Jersey’s electricity demand is expected to increase as more homes move away from fossil-fuel heating and electric vehicle use grows. Jersey Electricity will continue to combine imports with local backup generation while investing in its network and infrastructure.
He added: “Electricity is becoming increasingly important to the Island’s economy and everyday life. This agreement gives us greater visibility over our future supply arrangements while allowing us to continue investing in the resilience of Jersey’s electricity network.”
Main picture: Right to left – Chris Ambler, CEO Jersey Electricity, Matthieu Desmonts and Nora Selmet from EDF, and Alan Bates, CEO Guernsey Electricity.
