ELECTRICITY prices are set to rise next year.
Record oil prices and an increase in wholesale energy costs saw Guernsey Electricity’s import and generation costs for the 12 months to 31 March rise by more than 19% compared to the previous year. It means the company incurred more than £4m. in additional costs during that period.
Under the terms of its four-year price control, which came into effect in April 2007, it is able to pass on these increases to customers from next April.
Managing director Ian Watson (pictured) said the company always had to strike a balance between keeping prices as low as possible and the need for regular investment in the network. ‘We are doing everything we can to keep prices down by ensuring that we operate efficiently and keep a very tight rein on our controllable costs.
‘However, our top priorities are security and reliability of supply and therefore we have to fund the significant investment required to maintain our network and on-island generation capacity.’
‘We are, however, wholly owned by the States, so customers have the reassurance that any profit is either reinvested in maintaining and improving the network, or returned to the States by way of a dividend to be used to benefit islanders.’
In the 12 months to 31 March, Guernsey Electricity’s total capital expenditure on maintaining and improving the network was more than £6.75m.
Gas users have already been told they will have to pay between 15 and 20% more.
Guernsey Gas announced a price rise on Thursday.
‘We have done all we can to avoid increases, but global energy prices have now reached a level where we have no choice but to adjust our tariffs,’ said managing director Paul Garlick.
‘As an indicator of world energy price increases, Brent crude oil has risen by around 40% in the last six months.’
Article posted on 19th July, 2008 - 9.30am
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