JERSEY Electricity has announced a 12% price increase that will take effect from 1 January 2024.
The hike, which follows multiple rises implemented over the last 12 months, will add around £3 per week to the average annual domestic electricity bill of approximately £1,200.
JE says the increase will be needed to keep pace with rising costs caused by the ‘volatility of international energy prices’.
The company has frozen its current prices until the increase takes effect, to help Islanders prepare for what their electricity bills will look like next winter.
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.’
He continued: ‘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.’
However, Mr Ambler added that JE’s importation of clean energy from France had helped ‘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.’
He estimated that Jersey’s standard domestic tariff would remain around a half of the equivalent UK tariff after the increase in January, noting that other jurisdictions were introducing larger rises.
This includes Manx Utilities in the Isle of Man, which is implementing a 34% rise in electricity
prices between 1 April and 1 July 2023, as well as Guernsey Electricity which has announced a 13% increase from 1 July 2023.