Electricity prices to rise 2.5% from April
Electricity prices in Jersey will rise by 2.5% from 1 April 2020. The rise, only the third in six years, is in line with the latest inflation figure of 2.5% and will add around 47p a week to the average domestic bill of £972 a year.
Jersey Electricity CEO Chris Ambler said the rise was necessary due to inflationary pressures and the impact of foreign exchange rates. Though Sterling had strengthened recently, the exchange rates that underpin JE’s import costs had weakened by around 5% year-on-year.
Mr Ambler said: ‘We import around 95% of Jersey’s electricity and our supply agreement with EDF in France combines a fixed price component with the ability to hedge our purchasing over a rolling three-year period. These hedging arrangements have protected our customers greatly in recent years, but prolonged weakness in Sterling relative to the Euro eventually flows through into our costs. By keeping this rise in line with inflation and by deferring its implementation until after winter, we have tried to minimise the impact on household budgets.
‘Providing affordable electricity and maintaining stable pricing are the most important factors in the provision of our service to our customers along with supply security in which we have invested heavily in the last decade. This rise is only the third in six years and means our standard tariff remains a third cheaper than the UK price cap set by Ofgem (the UK Energy Regulator).
‘Over the five years from 2014 to 2019, the price of electricity in Jersey has increased by 7%, with Jersey inflation being at twice this level and UK electricity tariffs increasing by more than 30% over the same period.
‘Electricity prices in Jersey are independently benchmarked regularly by consultants Mott MacDonald and benchmark very well. Jersey’s electricity prices for most customers are around 15-20% lower than Guernsey, Isle of Man and the average of the 15 largest countries in the EU.'