Brexit uncertainty just an excuse to raise prices
HAVING watched the local news this morning, I hear that Guernsey Electricity are to increase the price of their electricity. Apparently, this is due to the uncertainty of Brexit and the de-valuing of the GBP (Great British Pound) against the Euro. Why should there be a de facto price rise? Why not a price cut because of the uncertainty over Brexit? Guernsey Electricity can’t know any more than anyone, exactly what effect Brexit’s going to have... but it’s as good an excuse as any to hike their prices!
As to the increase in electricity charges being incurred due to the de-valuing of the GBP against the Euro:
n On 15 November 2016 the GBP was €1.1571(average);*
n On 15 November 2017 the GBP was €1.142 (average);
n On the 13 Nov 2018 the GBP is €1.1495 (average).
The GBP has moved down just over 1/100th of a Euro (not even 1p) and yet, I bet the price increase from GE will be substantially more?
Yet, I believe, there was some mention of a contingency plan in the Budget to offset the ‘cost’ of Brexit. And so presumably, any extra cost (above the 1p de-valuation) that the consumer will be charged for their electricity must surely be for this contingency plan.
But what happens, should Guernsey do really well from Brexit? (It’s only the financial houses that may have to re-write their legislation, other than that, we’re already out of the EU as the islands never been in it)
Will all extra money collected/raised then be re-distributed? No, I don’t think so!
You’ll be more likely to see, a round of inflation-busting wage rises for the States deputies, who’ll be patting themselves on the back for a job well done!
Name and address withheld.
* Source: www.poundsterlinglive.com