Sat, 14 Jun 2025

Sat, 14 Jun 2025 Why are electricity prices going up in Guernsey?

It comes as electricity prices in the UK are dropping.

* Electricity tariffs in Guernsey will rise next month
* A typical low-usage household in Guernsey will pay £637 a year on electricity from July, which is more than what a similar household would pay in some parts of the UK
* However, heavy electricity users (high-usage households) are better off in Guernsey, with an average annual cost of £1,503
* The price rises mean that the average Guernsey household will spend between 47% and 117% more on electricity from July compared to 2021
* The increases are due to a combination of factors, including higher wholesale prices, increased borrowing costs, and decarbonisation plans
* GEL is responsible for all aspects of electricity in Guernsey, including generation, distribution, and billing
* Most of Guernsey's electricity comes from France through a subsea cable to Jersey
* The island also has 10 generators at its Vale power station, using a combination of natural gas, diesel, and oil
* GEL chief executive Alan Bates said the company had kept prices artificially low in the past, which led to underinvestment in infrastructure and is now having to raise prices to catch up.
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