Electricity price rise of 9.5% ‘should be reversed in 2015’
Monday 17th December 2012, 2:50PM GMT.
JERSEY Electricity should reverse a 9.5 per cent price rise that was introduced to cover power generation costs once a replacement undersea cable to France is installed, according to the industry regulator.
One of two submarine electricity cables to France failed in the middle of this year, leaving the Island reliant on the sole remaining cable and an expensive oil-fuelled power generation plant at La Collette.
Jersey Electricity said that it has been forced to increase tariffs from 1 January next year to help cover the estimated £8 million in additional costs of generating electricity to meet the Island’s demands.
According to Jersey Electricity, Islanders are paying for 75 per cent of the increased costs, while the company is covering a quarter.
The Channel Islands Competition and Regulatory Authorities say that it would be only fair for the firm to remove the 9.5 per cent tariff hike once the new cable to Normandy is operational in 2015.