Concerns were raised in public meetings and with individual States Members that raising the cap would equate to a 20% price increase but the States and Alderney Electricity Limited said this has proved not to be the case.

AEL began applying an agreed subsidy to electricity prices on 1 April 2022 in response to sharp increases in fuel prices early last year, brought on by the war in Ukraine. However, the company says it must maintain its power supply infrastructure and has subsequently had to raise prices to a level not requiring subsidy.

The budget that the Board of AEL have set for 2023 generates the surplus required but keeps prices to a minimum, it says.

The price of electricity on the main domestic tariffs A and C, including the fuel cost component, have been raised to 55.83p and 43.58p respectively.

The effective price per unit on the C tariff in January, which also includes a quarterly standing charge, remains around the level of the previous 50p cap for a typical property with average electricity consumption.

James Lancaster, Managing Director of AEL commented: “It is hoped the fuel prices will continue to fall and that these latest prices will prove to be the peak.

"The States of Alderney and AEL will continue to liaise and communicate any further updates to the community as soon as is practical.”

Anyone experiencing hardship as a result of the changes should contact AEL directly.

The States of Alderney is supporting the Alderney Community Assistance Fund and bill payers may be eligible for support from there too.