Guernsey Electricity prices to rise by 2.5 percent on 1 April 2012

March 1st, 2012 by Guernsey Electricity Ltd.

Guernsey Electricity control room monitoring on 8 June 2011 (click image to expand - ©RLLord)

Guernsey Electricity has announced that from 1 April 2012 electricity prices will increase by 2.5%. The increase to tariffs was agreed with the Office of Utility Regulation (OUR) in September 2011.

Managing director Alan Bates said that the increase was to recover costs incurred by the company under previous price controls that ended in March 2011.

“Guernsey Electricity is still in the process of recovering costs associated with previous price controls as the previous tariffs levels could not account for the volatility in the energy markets. GEL therefore incurred greater costs in importation of energy and also on island generation caused by the price of oil.”

In addition, the company announced that no additional increase is to be applied at this time.

“A further three percent increase was estimated last year and was previously planned for April to support our capital investment programme. However several factors, including the overdraft facility provided by the States Treasury and changes to the timescales of the Normandy 3 undersea cable link project, along with the need for continued dialogue with the OUR – have enabled us to review the need for an increase at the current time,” said Mr Bates.

Guernsey Electricity is now moving forward with the OUR to establish new approaches to tariff setting and a memorandum of understanding between the company and the OUR, as requested by the States of Guernsey as a result of the review of regulation.

 

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