GUERNSEY Gas launched another attack on Guernsey Electricity yesterday as the relationship between the two utilities became increasingly strained.

Ahead of the capital prioritisation debate, the gas company has written to all deputies questioning the operation of its States-owned rival, including claims it was selling electricity lower than the cost of producing it and losing money on non-core operations that competed unfairly with the private sector.

But Guernsey Electricity hit back, questioning the timing of the attack and claiming that Guernsey Gas was itself losing money and market share.

‘It is also well known that the Australian company that owns the local gas company and Jersey Gas would like to sell its Channel Island businesses,’ said Guernsey Electricity managing director Ian Watson.

‘If our view on their financial performance is correct, even if they can find a buyer in the current climate, the owners are probably looking at a sale price that is wholly unattractive.’

Guernsey Gas managing director Paul Garlick (pictured) asked how many times had Guernsey politicians spoken about the need to reduce costs and maximise revenue streams.