AN OVERDRAFT facility that would enable Guernsey Electricity to secure supplies is good for customers because it would prevent spikes in tariff increases, the managing director has said.

But Alan Bates, who was responding to the proposal in the 2012 Budget, said tariff increases would still be needed.

‘We are hoping to keep them at a reasonable level and certainly less than those seen recently in the UK.’

Mr Bates (pictured) said the expense of the £5m. overdraft facility over a four-year period from 2012, with interest payable at Treasury’s rate, would spread the costs more proportionately over the design life of the assets purchased.