GUERNSEY GAS has lent its weight to calls for electricity prices to rise.

The company criticised the Office of Utility Regulation for its role in controlling prices after Guernsey Electricity announced losses of £834,000 for the year ending 31 March.

Paul Garlick, Guernsey Gas managing director, said the States-owned utility was being forced by the OUR to sell electricity for less than it cost to produce it.

‘We have tried to warn people about this,’ he said.

‘Guernsey Electricity is making a loss, which will be a burden on the taxpayer in the future.’

He said that, as a competitor, it was unfair for his company to battle against a ‘loss-making monopoly’.

‘Guernsey Electricity’s managing director said in a radio interview in May that they were being forced to sell electricity for certain tariffs below costs,’ he said.

‘Even if you are going to operate Guernsey Electricity as a States-owned, loss-making monopoly, we do not see any gain in them selling electricity below cost on some tariffs.

‘They are not making any money – they say it’s unsustainable, we say it’s unsustainable and we think it’s not fair from a competition point of view.’

Mr Garlick said the blame lay squarely with the OUR.

‘The OUR wants one thing – low tariffs – because they think that is what they are judged on,’ he said.

‘We are completely backing Guernsey Electricity wanting price increases.

‘The way it is at the moment is absolute madness.’