Electricity goes up by 10%, making it a 32% rise over the past three years. The wholesale price of milk goes up by 4%, a 10% rise in six months.
Guernsey Electricity had applied to its sole shareholder, the States Trading Supervisory Board, to put up prices by 12% to cover higher importation costs and investment in the distribution network.
STSB president Peter Roffey said his board pegged the level back down to 10% which comes into effect today, 1 July:
“We have fortunately avoided the crippling increases in energy bills that have been seen elsewhere. However, we are still playing catch up after years when there was no increase in base tariffs under the previous regulatory regime. It kept bills artificially low, and starved Guernsey Electricity of the funds to adequately invest in the network. Customers now are having to pay the price of that."
The 10% increase will be split between the standing charge that everyone pays, and units consumed.
The price of a litre of milk could be £2, or more, from today, depending on where you shop. The Dairy is raising the wholesale price and in practice retailers tend to pass that on.
The Dairy blames ageing equipment, the subsidy it pays to farmers, Brexit and the Ukraine war for the price increase.
A recent survey showed the majority of people in Guernsey appreciate local milk although the only competition comes from non dairy alternatives, as shopkeepers are not allowed to import fresh or UHT milk.
The Dairy made a loss last year of £90,000 which is predicted to more than double this year.
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