The utility firm said it is embarking on an “island wide consultation with customers and other stakeholders to identify how its tariffs can be changed to ensure they are fair for all and enable advances in technology.”

The firm said the way electricity is generated and used is evolving and it knows customers are “increasingly making use of small generation technologies, such as solar power and other renewables” which means they are taking less energy from the grid.

That all impacts on revenue for Guernsey Electricity, which still has to maintain the grid as a back-up supply for all customers if required. But, as a large proportion of the company’s costs are fixed and are not affected by the amount of electricity used, Guernsey Electricity said the current tariff structure does not allow these costs to then be recovered in the future which it said now needs to change.

Alan Bates Guernsey Electricity

Pictured: Alan Bates. 

Alan Bates, Guernsey Electricity’s chief executive, says the consultation process getting underway now, is also a way of explaining those challenges to customers, while also listening to their views and energy needs, and in working together.

“Our tariff structures have been in place since 1993 and in that time the way electricity is generated has changed significantly and also continues to change at a rapid pace, so for this reason our tariffs need to evolve to meet these advances in technology.

“In the same way that we are committed to providing a secure, sustainable and reliable electricity service that is affordable and fair to all, we also are committed to the consultation process being transparent about the changes required. It is important Islanders take part so that they are able to have their say and shape the future of electricity tariffs for Guernsey.”

Results from the consultation will be made public in Spring 2019.

As part of the consultation process, Guernsey Electricity has commissioned an independent market research agency, ‘Explain’, to engage with customers. Initiatives will include customer workshops, consultations with a cross section of local stakeholders, telephone interviews and running surveys in venues across the Island in October and November.

Pictured top: Guernsey Electricity’s power station, shop and offices in the Vale.