Jersey Electricity has made the decision to announce the increase early to give customers more certainty of what they can expect from their electricity bills in the near-term.
In comparison with other jurisdictions, JE estimates that when the tariff increase is implemented, Jersey’s standard domestic tariff will remain around a half of the equivalent UK tariff. Manx Utilities is implementing a 34% rise in electricity prices between 1 April and 1 July 2023, while Guernsey Electricity has announced a 13% rise from 1 July 2023.
JE Chief Executive Chris Ambler said, ‘We are acutely aware of the cost-of-living pressures on Islanders and the rising costs of everyday essential items. By holding current tariffs unchanged until the end of the year and by announcing this tariff rise early, we hope to give our customers some comfort and an ability to plan by providing more visibility of what their electricity bills will look like next winter.’
‘Although Jersey Electricity has a strong contract with a favourable hedge position that has sheltered Islanders greatly from the recent turmoil in European energy markets over the last 18 months, we are not fully hedged nor completely immune to this volatility. Despite seeing an easing of European wholesale energy markets in recent months, they remain extremely highly priced compared to our current importation costs. Furthermore, whilst attractive hedges have been placed that give stability, they are on a rising cost trajectory. As a consequence of these factors and general inflationary pressures, we
unfortunately need to raise our tariffs.’
‘JE’s strategy of importing clean energy from France has enabled us to provide secure and sustainable electricity supplies and has helped to maintain stable electricity prices for the Island. This has delivered enormous value to local households and businesses and protected our customers from the extreme price increases seen in the UK and Europe.’
