Cut price power, if you generate your own

Thursday 21 March 2019

Guernsey Electricity has been told it's got to cut standby charges for people who generate their own power.

The utility firm currently charges £6.8594 per kW if you have solar panels or other ways of generating electricity without using their supplies.

The standby charges for people who generate their own power are a monthly tariff and the Channel Islands Competition and Regulatory Authorities has said Guernsey Electricity has to drop it to £3.07/kW/month immediately.

Pictured: Guernsey Electricity's power station, offices and retail showroom at Northside, Vale. 

CICRA has said it is "of the view that the standby charge applied by GEL is high compared to other jurisdictions to the extent comparators can be found and should, as an interim measure, be reduced until a full review has been undertaken on the appropriate level."

This response is proposed as a result of the 'credible risk to competition' in Guernsey's energy market, says CICRA, "should the present charging structure remain, given the level and unclear basis for the current charges. "

The reduction might not be a permanent cut though, as a consultation is now open until the end of this month. 

Michael Byrne, Chief Executive of CICRA said, "The proposed reduction in the standby charge from £6.8594 per kW to £3.07/kW/month will be introduced as an interim measure. A full assessment of the appropriate level of this charge will be significantly assisted by States of Guernsey policy, including clarification of the Competition Authority's role in regulation of the energy sector going forward."

Pictured: Guernsey Electricity has borne increased costs as a result of having to produce more power on island since a fault was found in the cable link to France. 

Guernsey Electricity is subject to another consultation being carried out by CICRA this month, with a draft decision made to put tariffs up by 6.8% for three years from 1 July this year.

The increase has been agreed in principal to cover the increased cost of producing our electricity on island while the cable link with France is being fixed which has taken longer than expected following a fault discovered in October 2018. 

CICRA says increased costs borne by Guernsey Electricity between April 2017 and March this year need to be covered, to allow "GEL to recover historic uncontrollable costs of £9.8million related to importation and generation of electricity.

This Draft Decision paper sets out the reasons for the proposed allowance of a 6.8% rise and the basis upon which the allowed amount has been calculated.

Pictured top: Solar panels. If you generate your own power, including using solar panels you may get a reduction in your standing charges payable to Guernsey Electricity.