The parent company of Guernsey Gas has announced a 16.9% increase in prices from mid-October.
It’s in line with other jurisdictions around the world as a global shortage continues to see smaller gas companies in the UK collapse.
Express spoke to the CEO of Islands Energy Group yesterday. We were told that the price rise was inevitable due to a combination of issues culminating in IEG losing 70% of its profits in just eight weeks.
“The price of wholesale gas has doubled as energy markets are reacting to a variety of complex influences including a significant number of events across the world, such as Brexit, Covid, storms across America, and unpredictable weather globally,” said Jo Cox from IEG.
“It is a wide range of factors that have combined to affect supply chains in a variety of ways, increasing the cost of many things that are crucial to the supply of gas.”
Pictured: “We are working closely with both the States of Jersey and Guernsey to ensure they are fully up to date on the situation and that they are able to offer support where they can,” said Ms Cox.
Guernsey Gas will increase its price in two stages. A permanent 2.2% increase, and a temporary 14.7% increase, which should be removed once the market stabilises.
IEG hopes to review the situation in six months.
The President of the Committee for Environment and Infrastructure and Vice President for the Committee for Employment and Social Security, has been kept updated of the situation by IEG, and is concerned about the increase in cost.
“Although I’m reassured that the supply of gas will not be impacted, I am obviously concerned about the effect this unavoidable increase in cost will have on islanders who rely on gas, particularly for heating their homes with the colder months on the near horizon," said Deputy Lindsay de Sausmarez.
Pictured: “I’m in active dialogue with the presidents and officers of both Employment & Social Security and Policy & Resources to explore options to provide the additional support some Guernsey householders may need to afford their gas bills once these price rises take effect," said Deputy de Sausmerez.
Similarly, Jersey customers will face an increase too. With a permanent 2% increase and temporary 15.2% increase.
“We understand that news of price increases for customers can cause concern and we would like to remind our customers that they can sign up for our Priority Customer Care service if they would like to discuss any additional support that we are able to give them,” said Ms Cox.
You can contact Guernsey Gas on 755577 or 724811. Additionally, ESS and P&R will be announcing supportive measures "as soon as they can".
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