Guernsey Energy is putting up gas prices by just over a penny a unit from next month.
The utility company said the rise will be temporary and is a direct result of the current conflict in the Middle East, and the recent surge in global wholesale energy costs.
Parent company, Islands Energy Group said it has informed its customers of the 1.2 ppkWh rise, which will be charged from 7 April.
“We have been watching the ongoing conflict closely and, despite our hopes that prices would settle, the picture has remained concerning,” said Graeme Millar, Chief Executive Officer, Islands Energy Group.
“With much of the global oil and liquid natural gas market passing through the narrow Strait of Hormuz, the conflict-related volatility has caused a steep rise in the wholesale cost of gas and is a direct pass-through of the amount we are now paying to secure supply.
“We want to reassure our customers that Island Energy is not making additional profit from this temporary adjustment. Our hedging strategy – where we buy future volumes at pre-agreed prices – has helped to limit the extent of this increase and shield customers from even greater instability.
“However, it is important to be clear and transparent. If wholesale prices remain elevated as our hedged contracts expire, further price increases will be necessary.
“We are watching the situation very closely and sincerely hope prices begin to ease, but the reality is that reductions can only be considered when wholesale rates fall back toward pre-conflict levels. Only when sustained and genuine cost decreases occur can we safely reduce tariffs without risking instability in the future.”
Islands Energy Group owns the gas distribution network in Jersey and the Isle of Man as well as Guernsey.
It has more than 35,000 domestic, commercial, and industrial customers in total across the islands it said, along with its retail outlets.
Any customers who need any help with the temporary price increase should contact Guernsey Energy’s customer team, said the utility.