An extra £3 per week will be added to the average annual domestic electricity bill from next year, as prices rise 12% caused by the "volatility" in the international market.
The hike will be the fifth announced by Jersey Electricity (JEC) since October 2020.
The local electricity company said that, rather than imposing the rise straight away, it had decided to freeze its tariffs until 1 January 2024 to allow islanders time to prepare for higher bills over winter.
The hike – which follows multiple rises implemented over the last 12 months – will add more than £150 to the average annual domestic electricity bill of approximately £1,200, or an extra £12 per month.
A similar price rise was recently announced in Guernsey, with Guernsey Electricity's tariffs to rise by 13% on 1 July 2023 after approval was granted by the island's States.
JE chief executive Chris Ambler stressed that Jersey had been "hugely protected" from "eye-watering" increases seen in other jurisdictions largely as a result of the company's hedging framework, estimating that the Island's standard domestic tariff would remain around a half of the equivalent UK tariff after the increase in January.
He also pointed to Guernsey Electricity's scheduled increase, as well as Manx Utilities in the Isle of Man, which is implementing a 34% rise in electricity prices between 1 April and 1 July 2023.
"UK prices are now twice Jersey’s prices; the Isle of Man is now 60% higher, Northern Ireland is 33% higher, Guernsey is 20% higher – and Guernsey and the Isle of Man will also be increasing their prices over the next month or so," he continued.
‘Wholesale markets have been high and volatile; other countries have rapidly increased prices but our prices have remained stable. As a consequence, Jersey Electricity has hugely sheltered Jersey from costs upwards of £100 million over the last 12 months alone. That is approximately £2,500 per household of completely avoided cost that others are paying in other jurisdictions."
Pictured: Jersey Electricity's CEO, Chris Ambler.
He said: "We are acutely aware of the cost-of-living pressures on islanders and the rising costs of everyday essential items.
"By holding current tariffs unchanged until the end of the year and by announcing this tariff rise early, we hope to give our customers some comfort and an ability to plan by providing more visibility of what their electricity bills will look like next winter."
He continued: "Although Jersey Electricity has a strong contract with a favourable hedge position that has sheltered islanders greatly from the recent turmoil in European energy markets over the last 18 months, we are not fully hedged nor completely immune to this volatility.
"Despite seeing an easing of European wholesale energy markets in recent months, they remain extremely highly priced compared to our current importation costs. Furthermore, whilst attractive hedges have been placed that give stability, they are on a rising cost trajectory.
"As a consequence of these factors and general inflationary pressures, we unfortunately need to raise our tariffs."
Pictured: Jersey imports the vast majority of its electricity from France.
However, Mr Ambler said that Jersey Electricity's importation of clean energy from France had helped "maintain stable electricity prices for the island".
"This has delivered enormous value to local households and businesses and protected our customers from the extreme price increases seen in the UK and Europe," he added.
January 2023: The second of two planned 5% increases.
July 2022: The first of two planned 5% increases.
January 2022: A 4% price rise due to "unprecedented increases" in European wholesale prices – the fourth Jersey Electricity price hike in seven years.
October 2020: A planned rise of 2.5% is delayed from April 2020 to October 2020 during the pandemic, costing Jersey Electricity £1m.
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