Deputy Lindsay Ash also commended Jersey Electricity for deferring its planned April 2020 2.5% increase by six months, to help Islanders affected financially by the pandemic.
Earlier this week the company announced a 4% rise – coming into effect from 1 January – that will add around 80p a week to the average domestic bill.
Chris Ambler, Jersey Electricity’s chief executive, said the change came in the wake of unprecedented increases in European wholesale electricity prices, which had more than trebled year on
year.
When asked about the new costs, Deputy Ash, who has political responsibility for government-owned companies, said: ‘When you compare it with other jurisdictions it is still very competitive. At the end of the day energy prices are going to continue to get more expensive globally, especially as we move towards more sustainable energy.’
Jersey Gas recently announced a 13.2% price hike that will add up to £15 per month to an average bill. Jersey Consumer Council chairman Carl Walker has previously called for support measures to help consumers ‘ride out this storm’.
Deputy Ash said: ‘We are looking at gas and what form of help we can give. Of course, some people will certainly be impacted [by the rising costs] but I don’t think we have the same exposure to gas price rises that other jurisdictions do.’
However, Deputy Geoff Southern said: ‘They should be trying to keep such extreme fluctuation down. We have a very unique position with Jersey Gas in that we [the government] don’t own it. We ought to be in negotiation with them about how we can get this price hike down.
‘This is an opportunity for us to work our way out of dependence on gas – we need to look at our utilities and where we want to be in five years’ time.’
He added that he was working on a proposition that would ‘address the issues discussed’.
The Council of Ministers recently unveiled its Government Plan update, which, if approved, would see Islanders forced to automatically pay GST on goods worth more than £60 bought from online retailers from the start of 2023, while road fuel duty could rise by 5p per litre at the start of next year.
Deputy Ash said: ‘I’m always concerned with inflation, and the competition regulatory body is looking at prices in the Island – but there is not much we can do if the inflation is coming from elsewhere.’
