The department, as sole shareholder of the company, has established a Memorandum of Understanding (MoU), which aims to benchmark the company's performance in strategy, pricing and customer satisfaction.
Currently, the average price (across various tariffs) charged by Guernsey Electricity is around 17% higher than in Jersey.
Treasury's supervisory sub-committee, which developed the MoU, has set GE the target to try to reduce the difference between Guernsey and Jersey's average tariffs to 11% between this year and 2018. This would then be reviewed on an annual basis.
Guernsey Electricity managing director Alan Bates said the board welcomed 'the further clarity' that the MoU had the potential to bring.
'Setting clear targets and objectives is important, and as shareholder it is important for the States to see they are getting real value from their assets.'
