Jersey Electricity announces 2.9% price rise, first increase in over three years
Jersey Electricity will raise tariffs by 2.9% from 1 May 2012, the first rise in electricity prices in the Island for over three years - excluding the 2% GST increase applied by the States of Jersey last summer. Prices will then be frozen for the remainder of the calendar year.
The rise is significantly below the Jersey rate of inflation, currently 5% according to the latest Retail Prices Index. It is also considerably less than last year's 21% increase in the price of local heating oil, 14% increase in local gas prices and the 15% average electricity price rises levied in the UK.
Jersey Electricity last increased tariffs back in January 2009. Since then, the Company cut prices by 5% in 2010 and froze them in 2011 and throughout this past winter - the third successive winter without increase.
JE CEO Chris Ambler said: 'We've worked hard to keep our tariffs stable and competitive over the last three years. Providing affordable, reliable and sustainable energy to Islanders is our core objective. We hope that by keeping our promise to continue our 2011 price freeze through the winter months this year has gone some way to alleviate pressure on family budgets in these difficult times.
'This below cost of living rise is necessary now to ensure we maintain our long-term investment programme, which is crucial to secure energy supplies in the future. We expect to see a net increase in our Energy assets of £15million this year. In addition, work continues on our £60million third undersea supply cable to France which we expect to be operational in 2015. The rise also covers an increase in the cost of imported power, which was offset by a reduction in operating costs.