Why are electricity prices going up in Guernsey?
Summary
Electricity prices in Guernsey will increase from next month, with typical low-usage households spending more annually compared to the UK. While heavy users in Guernsey may pay less than their UK counterparts, the price rise is due to factors like underinvestment and ending of a fixed-price deal for electricity supply.Key Facts
- Electricity prices in Guernsey are set to increase starting next month.
- A low-usage household in Guernsey will spend about £637 yearly on electricity from July.
- In the UK, similar households could save between £7 and £123 compared to Guernsey.
- High-usage households in Guernsey will spend around £1,503 annually, which may be cheaper than in parts of the UK.
- About 90% of Guernsey's electricity comes from France through a cable via Jersey.
- Electricity prices were kept low in Guernsey during the 2010s, but this led to underinvestment.
- The end of a fixed-price agreement with EDF, France's power company, contributes to the price increase.
- Factors like increased borrowing costs and decarbonisation efforts also impact prices.
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