Guernsey Electricity chairman Ken Gregson, left, and MD Ian Watson with the company’s 2007-8 report and accounts, released today. (Picture by Adrian Miller, 0613445)

A RISE in tariff is ‘very unlikely’ before 1 April 2009, according to Guernsey Electricity managing director Ian Watson. The company this morning released its annual report and accounts for the period up to 31 March. It has made a profit of nearly £1m. in 12 months.

Mr Watson said the results were encouraging considering the continuing increases in global energy prices, which, coupled with a weaker exchange rate, saw import and generation costs rise by nearly 20%.

That resulted in a significant loss on electricity sales but was offset by further growth in non-core commercial contracting and retail business and other income. The Office of Utility Regulation allowed GE a 15% increase in its tariff over four years from 1 April last year.

Mr Watson said that was under regular review, especially taking into account rising oil costs. ‘It’s between us and the OUR, but it will have the final say and it’s wrong to speculate. There was no price rise on 1 April 2008 and it’s very unlikely that there will be one before 1 April 2009.’