Guernsey Electricity is embarking on a consultation with Islanders regarding a proposed rise in customer tariffs due to be implemented later this year.
The need to gather feedback is due to the volatility of the global energy market following the Russian invasion of Ukraine in 2022, coupled with high inflation levels, which has caused the cost of generating on-island and importing electricity to rise beyond the levels previously anticipated.
The consultation will also inform the company on how tariffs can be changed to fund investment in the Island’s electricity infrastructure.
Karl Brouard (pictured), Chief Financial Officer, said: “Although local customers have been relatively insulated from the types of rises seen in the UK as a result of our forward price setting strategy, we are not immune from the wider geopolitical impact.
“Coupled with inflation hitting the highest rate for 30 years, this means we are facing increases in the cost of imported energy together with a rise in the cost of on-Island generation at the power station.”
Guernsey Electricity needs to upgrade its network and infrastructure over the coming years and maintain old power station equipment to ensure it can continue to act as a back-up. The company confirms that the consultation will form an important part of explaining the challenges of delivering the energy transition for the Island and determining how it will be funded.
Mr Brouard added: “We realise that this comes at a time when the cost of living for everyone is increasing, but we cannot let these changes delay the planned investment in the network and the need to maintain the security of electricity supply to the Island. We must continue to power businesses, keep the Wi-Fi on and our homes warm today and just as importantly, into the future.
“Guernsey Electricity is committed to providing a secure, sustainable and reliable electricity supply that is both affordable and fair to all Islanders and we want to be transparent around the tariff changes that are required.
“We must start to boost our investment and create a network that can cope with the rising electricity demand we are seeing, support an increase in local renewables and provide the infrastructure to achieve net zero carbon targets set by the States.”
The consultation provides customers with information on proposed changes to tariffs this year and offers an opportunity for them to provide feedback on the proposals.
The results will be used to inform the final tariff application made to the States Trading Supervisory Board, which has the responsibility to assess and approve electricity tariffs.
As part of the process, the company is to run a number of stakeholder face to face and telephone interviews and the public survey will be accessible online from Monday 20 February. Paper copies of the consultation will also be available from the reception in the retail showroom at Electricity House. The gathering of information closes on Tuesday 07 March.