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Jersey Electricity has announced plans to increase prices by 7.5% from January amid "turmoil" in the international energy markets.
The new year price rise is 2.5% above the island's latest inflation figure and will add around £2 to the existing weekly electricity bill of around £27 for the average Jersey household.
Jersey Electricity has admitted that price rises are "unwelcome" but stressed that customers in the UK pay are around 50% higher than the island, with bills rising by an estimated 66% in the two years to July 2023, and estimates that consumers in the other Crown Dependencies pay around 30% more.
Guernsey Electricity brought in a 10% price rise in July of this year.
Pictured: JE CEO Chris Ambler said that the electricity company had helped shelter islanders from the worst effects of the "challenging energy environment".
JE’s CEO Chris Ambler explained: “Turmoil in the international energy markets and the onset of Russia’s invasion of Ukraine have contributed to high and volatile wholesale energy prices across Europe and much of the world in recent years.
“Against this backdrop, we are starting to see signs of a more stable energy environment emerge, albeit with higher levels than historically has been the case.
“Our strategy of importing clean renewable electricity from France has helped to maintain relatively stable electricity prices, whilst making necessary investment and future-proofing the island’s electricity network.”
Mr Ambler noted that JE has managed to avoid some of the volatility seen elsewhere through the company's supply contract with France, which set fixed prices for around one-third of imported electricity through an agreement lasting until 2027.
A policy of risk management, including hedging – a protective strategy reflecting the attitude of a business toward risk – has also contributed to this outcome, he said.
The JE CEO said this strategy helped JE shelter customers from the worst effects of the "challenging energy environment". He estimated the policy had helped avoid an estimated £200 million in energy costs for the Island, equating to around £4,000 to £5,000 per household, since the Russian invasion of Ukraine in February 2022.
In addition to the forthcoming rise in the cost of electricity, islanders have faced steep hikes in gas prices in recent years, including rises of 13.2% in October 2021, 5% in November 2022 and 12% in February of this year.
Island Energy, which supplies Jersey's gas, said it had no news on whether a further price increase would be implemented during the coming winter.
JE says customers with concerns about their electricity bills should contact its customer care team by emailing jec@jec.co.uk or calling 505460.
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