ISLAND Energy has defended an impending gas price rise of 7.5% for Jersey customers after the Consumer Council raised concerns over the hike.
The utility company, which is not regulated in Jersey, has cited a rise in wholesale and import costs as the rationale for the above-inflation increase, which equates to around £9.50 extra a month for an average household.
It is due to take effect from 16 January.
Carl Walker, who chairs the Jersey Consumer Council, raised questions about the increase, noting the recent reduction of gas prices the Islands Energy Group announced for Isle of Man Energy customers, which followed a review of tariffs by the Crown Dependency’s regulator for the sector.
“This latest announcement reinforces the Consumer Council’s desire to see utility companies in Jersey regulated,” he said.
“Consumers could have confidence in utility companies, they could have price regulation, price transparency – they could have protections for when things go wrong and independent oversight.”
In a statement, Island Energy said it “has always sought to protect its customers from the volatility of gas prices prompted by global events” and that Jersey and the Isle of Man have “significantly different gas markets and costs to operate”.
“The recent price rises enable us to further invest in the network and deliver for our customers,” it added.
Darryl Goddard, the utility company’s interim managing director, said that energy markets were subject to “a variety of complex influences which impact our supply chain and keep the cost of services that are crucial to the supply of gas high”.
“Unfortunately, the wholesale price of LPG [liquefied petroleum gas] has increased, as have import costs to the islands, so we have had to increase prices.
“We always keep our pricing a fair reflection of the cost of supplying gas to our customers. We always try and give as much warning as possible ahead of any price changes.”
He added that vulnerable customers could register with Island Energy’s Priority Care scheme.
“We will assist them with safety checks, prioritising call-outs, energy-saving advice, and by offering payment plans, where customers can spread the cost of their winter bills across the whole year if they sign up to a fixed direct debit,” Mr Goddard said.
Read Consumer Council chair Carl Walker’s column about gas prices in tomorrow’s print and online editions of the JEP. Details of how to subscribe can be found at jerseyeveningpost.com/delivery-and-subscriptions
