Guernsey Electricity CEO says price rises 'needed for reliability'
An above-inflation price rise will allow Guernsey Electricity Ltd (GEL) to maintain the reliability and security of the island's electricity supply, according to the company's CEO.Last week GEL announced an 8% price rise, with the standing charge set to go from £68.25 to £86.75.Speaking to BBC Radio Guernsey, CEO Alan Bates said: "It's not about creating anything new for the future, this is just really keeping us where we are today so we don't see more power cuts or faults in the road."Mr Bates said more money would be needed for the company's future plans, adding: "Investment today is very much about standing still."
The company had originally asked the States Trading Supervisory Board, which oversees GEL, to raise prices by 9.5%.Mr Bates said the lower price increase would "slow down" some of the companies planned activity.
How much are prices going up?
The 8% increase is being spread among the standing charge and the price per unit of electricity, the company said.Standing charge - rising from £68.25 to £86.75 per quarterStandard tariff- rising from 23.89p to 24.77p per unitSuper Economy tariff (peak rate) - rising from 25.31p to 26.45p per unitSuper Economy tariff (off peak) - rising from 11.40p to 12.26p per unitGEL said a typical domestic customer with electric heating would pay about £57 more a quarter.Meanwhile, those without electric heating will pay about £35 more a quarter quarter.
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