Gas producers across the world are warning that price increases for consumers could be imminent due to supply issues and shortages, with natural gas prices in Europe recently reaching more than $100 per barrel – a record level that is five times higher than two years ago.
And Jersey Gas has confirmed that it has no current plans to drop the 6.5% price increase imposed in May 2020, which was introduced as the company lost a large section of its customer base due to Covid restrictions. The increase was announced a matter of days before it came into force and was initially described as a ‘temporary’ measure.
At the time, the company claimed that it had lost 45% of its custom due to the closure of businesses such as restaurants and bars, and that its position was worsened by the government refusing to provide it with financial support through the co-funded payroll wage subsidy scheme for struggling firms.
In response, the government said that the utility company, which is owned by Isle of Man-based International Energy Group, had not provided it with sufficient financial information to validate its application for support.
The firm has confirmed that it is reviewing its pricing strategy.
A spokesperson for Jersey Gas said: ‘The reason for the initial price increase was because Jersey is dominated by the commercial market; as restaurants and hotels closed during Covid, our revenues were drastically impacted.
‘While the market is opening back up, it is still not where it was: our gas suppliers have also significantly increased their costs to us for the supply of gas, which continue to rise across all our markets, so it is necessary for the price rise to remain in place for the immediate future.
‘However, we do understand that our customers have worries about costs rising during the colder months and we can genuinely assure them that all options are being reviewed. We are working on our pricing strategy at the time of writing, and will keep customers fully and promptly informed should there be any changes to tariffs.’
