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Islanders will be paying around £100 more per year for their electricity in 2023, with costs set to go up 5% in July and another 5% in January.
Jersey Electricity said the move was down to “volatility” in the global energy markets, but noted that Jersey’s rates were slightly below inflation and less than other jurisdictions.
Over the last five years, prices on the island have risen by a cumulative 12%, compared with inflation of 17%.
The latest changes mean that, by 2023, islanders will be paying around £2 per week extra. The average domestic bill of £1,100 a year will have gone up by around £104.
Noting the global “turmoil”, JEC CEO pointed out that the Isle of Man had announced the retail price of electricity will rise by 30% between this April and July.
“Although the electricity prices we pay for the 2022-24 period are largely hedged, we are not fully hedged nor completely immune to this volatility,” Mr Ambler said.
Pictured: JEC CEO Chris Ambler.
He added, however, that islanders had been “greatly shielded from the worst effects of this current period” because Jersey’s electricity “is sourced from lower cost and low carbon nuclear and hydro-electric generation, is procured under long term contract that allows for hedging our requirements up to three years in advance and affords the island certain price protections” and that “the company’s foreign exchange requirements are similarly procured under a rolling basis to broadly match power purchases.”
He also said he expected Jersey’s electricity price levels to “remain at Jersey over half the level of UK prices.”
The price rise comes as islanders face unprecedented rises in the cost of living locally, with inflationary rises hitting their highest level since the financial crash in 2008.
Pictured: Inflation (RPI) percentage changes per cost category.
The rising costs of fuel and light were among the greatest contributors to the increase, as well as petrol prices.
This morning, the Jersey Consumer Council highlighted the rocketing price of heating oil.
Yesterday, the price of a 500l order of heating oil passed the 100ppl mark.
Yesterday, the Social Security Minister confirmed that a temporary 'Cost of Living Temporary Scheme' (COLTS) to support low-income households through this period had gone live. It will run from April to December 2022, providing £20 per person, per month.
A 500ltr order of heating oil has now passed the 100ppl mark.#costoflivingemergency #oilprices pic.twitter.com/VVET6uTGN5
— Jersey Consumer Council (@JerseyConsumer) May 4, 2022
She said this related to more than 11,000 islanders, made up of 9,600 adults and children living in Income Support households and 1,800 "just about managing" people who don't qualify for Income Support but receive benefits to help with heating, health or other costs.
“It has already been agreed that there will be an increase in Income Support Components of 2.6% in October but in addition to that, I have acted quickly to develop and implement COLTS, a new support scheme for those who most need help," said the Minister, Deputy Judy Martin.
"I believe that this scheme will make a real difference, now, to low income and just about managing families who are struggling with the cost of their weekly shop.
"I also realise that inflation pressures will be with us for a while and affect everyone. Ministers have already instructed officers to investigate other ways for the Government to support local islanders.
"These plans will go to the new Council of Ministers immediately after the election.”
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INSIGHT: How will Jersey fuel its future?
The Jersey Consumer Council has created the following price comparison tools to help islanders compare the costs of different essentials...
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