Gas prices to rise by up to £15 a month

Friday 24 September 2021

The price of gas will be going up by 13.2% in Jersey from the middle of October, which could lead to increase of up to £15 a month for an average customer.

The Islands Energy Group, parent company of Jersey Gas and Guernsey Gas, announced the increases today in line with significant increases in the cost of all forms of wholesale gas currently being experienced across the world.

Jersey's Government says it is now investigating potential financial support for affected low-income households.

Jersey Gas, which “temporarily” increased its prices by 6.5% in May last year after being  refused access to the Government’s co-funded payroll scheme, will be reducing its prices by 2% but applying what they describe as a “market-linked” increase of 15.2%.

In Guernsey, a permanent price increase of 2.2% will be applied, in addition to a temporary 14.7% one. 

The company said both market-linked increases will be reviewed and may be reduced after six months if global market conditions allow.

For the average customer, the increases could mean an additional £10 to £15 on their bill every month.

Jo Cox, CEO of Islands Energy Group, said they had had no choice but to make the “difficult” decision to increase prices.

“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,” she said. 

“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.

“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.”

Jersey's Infrastructure Minister Deputy Kevin Lewis commented: "We recognise that the price increase will be a concern to many of their customers, and Government will ensure that vulnerable Islanders are supported. We are also committed to maintaining stability in our energy market, and Government officers are working with Jersey Gas to ensure suitable mechanisms to help customers are in place.”

Social Security Minister Deputy Judy Martin added: “Although only a small proportion of vulnerable Islanders and low-income households rely on gas, we are aware that the price increase will have an impact. I have asked officers to investigate the impact of the price increase and we will be focusing on offering support to those who may struggle over the winter months.”

Both Guernsey and Jersey Gas reminded customers that they a Priority Customer Care scheme that can offer customers payment plans, ‘Comfort Checks’ for customers at home and further support if needed.

Ms Cox said: “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.

“Our team can be reached in Jersey on 755577 or in Guernsey on 724811.”

Express has contacted the Government for comment and is awaiting a reply.