‘Number of people struggling to pay bills has not risen’
CUSTOMERS are keeping up with electricity bills, despite rising tariffs.
Guernsey Electricity said yesterday that the most recent increase – by an average of 9% in July – had not caused more customers to default on bills.
But the utility was reassuring less well-off customers that it recognises some could struggle to keep up with further inflation-busting increases in tariffs in future years.
‘We have not seen a high instance of that, but it could partly be related to having quite a mild winter,’ said chief financial officer Karl Brouard.
In the period October to January, the island used about 3% less electricity than in the same period 12 months earlier.
Guernsey Electricity is out to consultation on proposals to increase tariffs by an average of 14% in 2023. And it is warning of more price rises after that as it catches up with years of under-investment in the island’s power network.
It has started discussions with Employment & Social Security about support for recipients of income support over the next few years.
‘Then there is a big band of people who sit just above [income support] levels and we are very aware of them. We have spoken to ESS and Income Tax about identifying those people,’ said chief executive Alan Bates.
‘If the external pressures which are driving this latest tariff proposal don’t change or get worse, I think there are conversations to have about how much can be passed on to consumers and how much can be absorbed by the company or government. That’s not a conversation for today but we’re aware of the possible need ahead.’
At the time of the average 9% increase in July, the utility hoped that this year’s increase would be slightly lower.
‘When we did the last application, it was pre-Ukraine war and pre-inflationary pressures. The last increase was to allow us to start funding basic capital investment which the island needs,’ said Mr Bates.
He said that annual increases of 9% or just below would remain necessary for the next few years to fund essential investment in equipment and the island’s network – and that any tariff increase above that level would be driven only by global energy market factors outside the company’s control.
