Gas customers will face higher charges from next month, with Island Energy announcing a tariff increase equivalent to around 5% for households on its standard central heating tariff.
The company will add 1p per kilowatt hour (kWh) to its mains gas, mini bulk tank and cylinder tariffs from 1 December. The rise applies to all domestic and commercial customers.
Island Energy said sustained increases in wholesale gas and liquefied petroleum gas (LPG) prices, together with the cost of transporting and handling fuel imported into Jersey, were behind the decision.
Chief executive Graeme Millar said: “We recognise that any price increase is unwelcome, particularly during winter.
“Buying a proportion of our gas in advance helps us reduce the impact of short-term market volatility, but it cannot fully protect customers from sustained increases in the cost of fuel and bringing it to Jersey.”
The company pointed to global supply pressures, competition for available cargoes and disruption to Middle Eastern exports and shipping routes as factors pushing up costs.
LPG prices have also been affected by seasonal demand, demand from the petrochemical industry, changes in European supplies and higher freight costs.
Island Energy said it buys some of its expected gas requirements in advance to limit the effect of sudden market price changes.
Securing fuel at lower prices had helped reduce the impact on customers, it said, but could not fully offset prolonged increases.
The company said its current tariffs no longer reflected the cost of supplying gas.
Mr Millar added: “We will continue to monitor wholesale markets closely, manage our purchasing carefully and keep tariffs under review.
“If you are worried about paying your bill, please contact our customer team as early as possible so we can discuss the support available.”
