Why are electrical energy costs going up in Guernsey? | EUROtoday

The BBC used data from Guernsey Electricity Ltd’s (GEL) tariff calculator and knowledge from Uswitch to estimate annual prices for low-usage and high-usage households in several areas of England, Scotland and Wales.

Using the evaluation, a typical low-usage family in Guernsey would spend £637 a yr on electrical energy from July.

Depending on the area, in Britain they may count on to avoid wasting between £7 and £123 a yr – between 1% and 19% lower than Guernsey.

However, heavy electrical energy customers are higher off in Guernsey, with a high-usage family to spend on common £1,503 a yr from July.

The evaluation confirmed British households might count on to spend between £42 and £244 extra a yr – as much as 16% extra.

GEL mentioned direct comparisons between the UK and Guernsey had been “challenging due to the different tariff structures and pricing models” in addition to “the relative economies of scale”.

Note: The figures don’t embrace particular tariffs, reminiscent of these for warmth pumps or promoting renewable power again to the grid. Low-usage family calculations had been primarily based on 1,408 items a yr and high-usage primarily based on 5,517 items. Figures embrace reductions for paying with Direct Debit in UK and Standing Order in Guernsey.

Guernsey’s electrical energy costs stayed the identical from 2012 to 2019, however have since risen considerably.

These worth rises imply the typical Guernsey family will spend between 47% and 117% extra on electrical energy from July in contrast with 2021.

Unlike electrical energy corporations within the UK, GEL is answerable for all points of electrical energy on the island, together with producing or importing it, distributing it and billing prospects.

Most of Guernsey’s electrical energy – about 90% – comes from France by a subsea cable to Jersey, supplying the island with low-carbon power.

However, the island additionally has 10 turbines at its Vale energy station, utilizing a mixture of pure fuel, diesel and oil.

The worth of electrical energy was saved “artificially low” by many of the 2010s, in line with GEL chief government Alan Bates.

This was excellent news for customers on the time as they paid lower than they’d have within the UK.

However, the corporate mentioned this led to underinvestment in its infrastructure, which is likely one of the causes it’s having to lift costs now – to play catch up.

GEL additionally agreed a set worth for the electrical energy it buys from France with EDF, France’s government-owned energy firm.

The agency mentioned this protected the island towards fluctuations in oil and fuel costs brought on by components just like the Ukraine battle.

With that settlement ending, it means the corporate might want to pay extra and it’s passing that price on to customers, with the most recent rise being 8%.

Other components reminiscent of elevated borrowing prices and decarbonisation plans had been additionally taking part in an element, mentioned GEL.

GEL mentioned islanders might lower your expenses by switching to its “unique Super Economy 12 tariff” – which might save a typical person £270 a yr.

The firm additionally provides a 2% low cost for purchasers paying by standing order, it mentioned.

Alexandra Gelder, a medical secretary from Castel, mentioned her household paid practically £200 a month for electrical energy regardless of being “barely home” and he or she was “petrified” about paying her payments subsequent month.

Ms Gelder, who has Raynaud’s Syndrome, a situation which may trigger the fingers and toes to go numb in chilly temperatures, mentioned she couldn’t afford to warmth her States house any extra.

She mentioned circumstances had been “not so bad” in the summertime however “winter is awful”.

“I love this island, it is beautiful – but to afford to live here sucks,” she mentioned.

Citizens Advice Guernsey mentioned it had not but noticed a rise in islanders asking for assist about electrical energy payments however it was bracing an elevated variety of calls when tariffs rise.

“We strongly encourage anyone concerned about these changes to reach out for advice as early as possible,” a spokesperson mentioned.

GEL mentioned it had purchased wholesale electrical energy at a set worth since 2017, which shielded islanders from “the significant price rises seen in the UK” and had saved prospects “more than £70m”.

“To understand the exact impact of upcoming tariff changes on individual bills, we recommend customers use our online tariff calculator,” it mentioned.

Standing expenses are a set day by day price to cowl the prices of connecting to fuel and electrical energy provides.

GEL’s standing cost rose greater than 380% between 2021 and July 2025 – from just below £18 to £86.75 1 / 4.

From July the standing cost is about to go from £68.25 to £86.75.

Before 2022 GEL mentioned 96% of its earnings got here from charging folks for utilizing electrical energy – the unit cost.

However, the rising use of renewable power by households, reminiscent of photo voltaic panels, meant the sum of money the corporate made would drop.

A GEL spokesperson mentioned the corporate deliberate to assessment the way it charged for electrical energy to make it sustainable, together with for purchasers “who place a lower strain on the island’s electricity network”.

However, the spokesperson mentioned extra trendy electrical energy meters would should be put in earlier than adjustments may very well be applied.

They mentioned “there will not be further large standing charge increases” till the assessment had been accomplished.

GEL mentioned its tariffs “ensure a secure electricity supply for islanders, with minimal interruptions”.

“Guernsey performs well compared to other jurisdictions on the average number of minutes lost per customer per year through faults and cable damage, with 99.9% availability of supply maintained across the year,” the corporate mentioned.

Visualisations by Georgina Barnes and the BBC Shared Data Unit