The four-year deal begins on 1 January 2028, when the current arrangement with EDF ends, and builds on the company’s long-standing relationship with the French supplier.
More than 90% of the island’s annual electricity demand is met by importing low-carbon electricity through the subsea cable linking Guernsey to Europe.
‘We are delighted to have agreed this contract with EDF,’ said Alan Bates, chief executive officer at Guernsey Electricity.
‘It builds on our established relationship and demonstrates our commitment to continue working together to power our island.’
Mr Bates said the agreement meant islanders would continue to benefit from imported low-carbon electricity from 2028, helping to lower Guernsey’s carbon emissions and reduce reliance on the fossil-fuel Vale power station.
He added that importing electricity was generally cheaper than generating it on-island, which helped manage the impact on local electricity prices, and that the new contract would allow the company to continue using forward price hedging to smooth out the effect of wholesale market volatility on tariffs.
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