Guernsey Electricity said it needs to invest more than £150 million into our power supply by 2030, with this summer’s tariff increase described as “necessary” to help fund essential projects.

A third of that £150m is earmarked specifically for maintaining and upgrading the island’s current electricity infrastructure. 

Another large chunk will pay for some significant capital projects, including replacing the subsea cable that connects Guernsey to the European grid, and a planned new inter-connector to boost import capacity. 

GEL said putting up prices now, alongside borrowing some of the money and spreading the cost between current and future customers, will help prevent larger price hikes in the future. 

The States Trading and Supervisory Board said it approved this summer’s tariff increases because it will future-proof the island’s electricity needs. 

Tariffs

Prices are due to increase by up to 10% from July.

That is made up with a 3% increase in standing charges, which is below the rate of inflation.

Unit charges will go up by between 5% and 7%, with households with the highest energy usage seeing their costs rise more than lower usage households.

The new tariffs come in from 1 July.

Pictured: A specialist vessel was used to lay the last sub-sea cable connecting Guernsey to the continent in 2019.

STSB has recognised that while some islanders face affordability pressures, it felt restricting the tariff rise to inflation would be a financial risk. 

“The company had applied for a 6% increase,” a spokesperson said. “In its decision notice, the STSB said it acknowledged the current affordability pressure which islanders faced.

“However, given the scale of investment required by the company, to restrict tariff increases to RPI now risked much higher rises in future. A 5% increase struck the right balance.”

Savings

Alongside tariff increases, borrowing, and spreading costs among current and future bill-payers, GEL also has to make £2m in savings by 2028 as part of its agreement with STSB. 

Those behind the decisions say this will mean costs increase now will help to prevent larger increases down the road. 

The STSB spokesperson said: “If the projected level of capital investment is to be delivered, restricting tariff increases to RPI in the near term would likely result in materially larger increases, in excess of RPI, being required by 2029.

“The Board is satisfied that GEL’s proposed capital investment programme supports the delivery of reliable and resilient electricity services, to meet the island’s current and future needs.”

Protests

The news of this summer’s tariff increases has already received a broadly-negative response across social media.

This time last year, the 2025 tariff increases led to protests after above inflation tariff increases were announced, with a demonstration taking place outside the Vale power station.

At the time, the man behind the protest claimed that “electricity is a right, not a privilege.”

Pictured: Myles Duquemin organised a protest and petition last year.

Those complaints were heard at a political level, with ten candidates taking part in the June 2025 election attending the protest.

It has not prevented year-on-year price increases from continuing however.