Gas bills to increase by 5% from next month

Guernsey's gas supplier has announced a 5% increase in tariffs from December which it says is driven by rising wholesale energy costs.

Guernsey Energy said mains gas, mini bulk tank and cylinder tariffs would increase by 1p per kilowatt hour for all domestic and commercial customers from 1 December.

The increase comes less than eight months after it imposed a temporary 1.2p per kilowatt hour rise in April, citing turmoil in global gas markets.

The company said "global supply pressures, competition for available cargoes and disruption to Middle Eastern exports and shipping routes" had increased its costs.

Guernsey Energy said buying some of its gas in advance had helped shield customers from larger increases in wholesale prices, limiting the rise to about 5% despite much steeper increases in the market since spring.

The current tariffs "no longer reflect the cost of supply", it added.

Chief executive Graeme Millar said he recognised price increases were unwelcome, particularly during winter.

"Buying a proportion of our gas in advance helps us reduce the impact of short-term market volatility, but it cannot fully protect customers from sustained increases in the cost of fuel and bringing it to Guernsey," he said.

"We will continue to monitor wholesale markets closely, manage our purchasing carefully and keep tariffs under review."

The company's standard domestic central heating tariff is currently 20.79p per kilowatt hour, meaning it would rise to 21.79p after December.

Customers concerned about paying their bills were encouraged to contact the company to discuss the support available.

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