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.’