Guernsey States approves electricity price hike

People in Guernsey will soon have to pay more for their electricity.

Prices are going up from 1st July, after the States approved an application from Guernsey Electricity to raise tariffs to increase revenue by 9%.

The electricity provider says the price increase is needed to pay for "much-needed infrastructure investment to manage an anticipated increase in electricity demand".

Guernsey is encouraging islanders to move towards more renewable energy and away from the use of fossil fuels for transport and heating.

Guernsey Electricity says £10.7m a year is needed to "maintain and improve the local supply network".

The States' Trading Supervisory Board adds: "Current levels of investment in the island's electricity infrastructure fall well below the level needed to maintain the existing asset base and are significantly below the level required to deliver the energy transition.

"Whilst highly conscious of the impact of increased charges on consumers at any time, but in particular during the current economic situation, the Board has nevertheless determined that the most important factor to be addressed in determining the application is the pressing need to start correcting current levels of under-investment in the electricity network."