Guernsey Electricity says it may have to be subsidised to achieve energy policy

Guernsey Electricity says it may have to be subsidised in future in order to achieve the island's energy policy and green goals aim.

That is according to the company's annual report which has just been released.

It shows the operating profit for the year, after adjustments, was £1.5 million. 2020 saw a loss of £7.9 million. Despite this improvement, the Chairperson Ian Hardman says the profit remains far below that needed to replace aging assets:

"This board remains concerned about the ability to deliver the necessary level of infrastructure investment required to maintain today's electricity network, as well as, and more importantly, the ability to be able to invest in a network which will be able to facilitate the decarbonisation of the island and support the opportunity to embed more renewable generation and energy storage in the future."

It comes as prices are going up from 1 July, after the States approved an application from Guernsey Electricity to raise tariffs to increase revenue by 9% to pay for "much needed infrastructure investment" and to manage an anticipated increase in demand.

The report shows there was a new record maximum demand of more then 94 MW with 94% of electricity imported from low carbon sources.

There has also been a 40% increase in electricity supply reliability since the replacement of the subsea cable between Jersey and Guernsey in 2019.

The report says the impact of the company's under investment can be seen in the reduction of its non-current asset base from £150.8 million to £148.9 million.

It says the opportunity to work with the States' Trading Supervisory Board to provide a platform tariff reform is a "real positive" for the company and the future of the islands' energy policy.

The future strategy is dependent on a States decision, which is expected later this year.