The utility firm says that the changes will make the current billing structure ‘fairer’, reduce pressure on Islanders during the winter and protect the vulnerable in society.
Currently, customers pay a uniform standing charge. Under the new structure, central-heating customers will see an increase in the standing charge they pay – dependent on what band they are placed in, which is based on the volume of gas they use – but a decrease in the cost per unit of gas to 8.79 pence per unit.
The current unit price varies depending on what band the household is in.
Today, the company said that the new billing structure would not increase the revenue that Jersey Gas received and that it would ‘make it easier for customers to budget for their gas consumed throughout the year’.
‘During the winter big bills come through and big credits occur during the summer.
‘We are trying to align the bill payments’
Paul Wright of Jersey Gas
The company also said that while some customers would see their bills rise, others would see their bills drop and that the majority would ‘see little change’.
‘We are trying to rebalance the tariff to make it fairer,’ finance director Paul Wright said.
‘During the winter big bills come through and big credits occur during the summer.
‘We are trying to align the bill payments through the year.’
He added: ‘This will reduce the pressure and strain during winter time.’
John Davies, commercial director, added that although they were not required to seek pre-approval from the Channel Islands’ Competition Regulatory Authorities it had asked them to review their calculations to demonstrate that the change was ‘revenue neutral’.
Customers will be placed in one of nine bands, based on the actual annual gas consumption for their property for the last five years.
Low users with an average annual consumption of less than 2,000 kWh and large users consuming more than 25,000 kWh will not be affected, the company says.
Mr Davies said: ‘Over the course of a typical year the majority of customers will see little change.
‘Some will see a small increase and others a small decrease, depending on the volume of gas they use.
‘We have recognised the need to protect the most vulnerable in society, and given that many will be low-volume users, we have not changed the tariff for those using under 2,000 kWh.’
He added that an exercise to review non-central-heating customers was scheduled for early 2016.
Every customer affected by the new billing structure will receive a letter explaining how the change will affect them, and which standing charge band they are in.
Jersey Gas urged anyone concerned about how the changes will affect them to call 755580.
