Electricity prices to rise 1.5%
Electricity prices will rise by an average of 1.5% from 1 April. The rise is to cover the increasing costs of operating La Collette Power Station since the loss of the undersea French supply cable EDF1 in June 2012.
The rise, which is below Jersey’s inflation level of 1.9% and well below the average 5% rises implemented by the Big Six energy companies in the UK, follows an average 9% increase last January to meet the cost of heavy fuel oil used to generate
Jersey Electricity CEO Chris Ambler said: ‘We are still feeling the effects of reduced importation from EDF due to the failure of our oldest undersea cable. However, we have managed to postpone the below inflation increase until after the winter period to minimise the burden on business and household budgets.
‘The Company is also in the midst of the biggest investment programme in its history. This includes the eight-year, £70million project to install a third 100MW French interconnector, Normandie 3. We have a potential £40million project to replace EDF 1 over the same route as the failed cable. We have recently completed a £9million project to install two new diesel generators at La Collette as well as an upgrade of the previously ‘moth-balled’ steam turbines and other generation plant. And we now have a brand new £12million project to build a vital new primary sub-station to enhance and secure supplies in St Helier.’
Jersey will continue to benefit from one of the lowest cost electricity supplies of any European island. Even with the tariff rise, JE prices will remain within company targets of +/-10% of the European average and still compare favourably with much larger jurisdictions.’