Electricity costs set to rise in Alderney

Alderney Electricity is putting up prices from April to protect its long-term running costs and cope with financial pressures, bosses say.

Managing director Chris MacGregor said a 6.4% increase above inflation tariff adjustment would "begin correcting that long-term imbalance", help the company speed up its use of renewable energy and "ensure the long-term stability" of the electricity system.

MacGregor said the increase means a household on Tariff C, using about 600 units of electricity every three months would pay £20 per quarter, or £1.50 a week.

He said electricity prices would still be below the level they would have reached if tariffs had kept pace with inflation.

MacGregor said the company "deliberately held" prices below inflation "to help protect households and businesses from wider economic pressures".

He said this had helped people during the Covid-19 pandemic and the impact of the Russian invasion of Ukraine on energy prices, "but it has also created a growing gap between the cost of running Alderney's energy systems and the revenue needed to sustain them".

The price increase was agreed by the board in February to deal with "long-standing" financial pressures.

MacGregor said Alderney's energy system was "particularly exposed" to global fuel markets as it did not have an electricity interconnector and relied almost entirely on diesel-generated electricity.

He said wholesale fuel prices had " risen sharply" since the escalation of the US-Iran conflict, with fuel prices on the island rising this week.

He added that the wholesale price for diesel has increased by nearly 50% since January and kerosene, or heating oil, was up by more than 80%.

MacGregor also said the latest fuel shipment "ensures that Alderney's immediate fuel supply remains secure", with higher wholesale prices reflected in retail fuel prices.

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