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The price of milk is rising by 4p per litre today amid an "ongoing" increase in operating costs for Jersey Dairy – but what else is due to get more expensive this year?
The milk price hike marks the latest cost increase for islanders, who must also also foot the bill for 7.5% increases in both electricity and gas prices that have been introduced this month by Jersey Electricity and Island Energy.
Jersey Dairy has announced that the price of milk is rising by 4p per litre from today.
The hike of around 3% comes less than twelve months after milk prices were increased by 5%, or 7p per litre, last April.
Jersey Dairy’s managing director Eamon Fenlon cited "ongoing inflationary pressures" and increases in payroll, packaging, utility, and freight costs in 2025 as reasons for the decision.
Pictured: Eamon Fenlon is Jersey Dairy’s managing director.
He said: “We have worked extremely hard to find efficiencies wherever we can throughout 2024 at Jersey Dairy, as have our farmers on their farms, but like all other businesses, we have continued to experience increased costs over the last year.
“Also, an independent analysis of the profitability of our dairy farms highlighted that an increase in the price Jersey Dairy paid to our dairy farmers for milk supplied to Jersey Dairy was required to enable the ongoing levels of investment to ensure a sustainable commercial future.”
He added: “Sustainability of our farms is paramount to ensure an ongoing supply of fresh milk and the future of our iconic Jersey cow in its island home.
“In addition to their environmental stewardship of our beautiful countryside, our farmers make a significant contribution to local food security with the wide range of products produced from the milk they supply to Jersey Dairy.”
Mr Fenlon said that Jersey Dairy has the support of Economic Development Minister Kirsten Morel for the latest price increase.
“Jersey Dairy sought the opinion of the Minister regarding this milk price increase, as we are obliged to do, and we have his support for this price increase,” he said.
“We are very mindful of the cost-of-living challenges faced by many of our customers and have kept this increase to a minimum, and we hope they understand why we must implement this price increase.”
Gas prices are due to rise by 7.5% from 16 January.
Island Energy cited a rise in wholesale and import costs as the rationale for the above-inflation increase, which equates to around £9.50 extra a month for an average household.
The utility company, which is not regulated in Jersey, defended the impending gas price rise for Jersey customers after the Consumer Council raised concerns over the hike.
Pictured: Graeme Millar is the new CEO of Islands Energy Group.
In a statement, Island Energy said it “has always sought to protect its customers from the volatility of gas prices prompted by global events” and that Jersey and the Isle of Man have “significantly different gas markets and costs to operate”.
“The recent price rises enable us to further invest in the network and deliver for our customers,” it added.
Darryl Goddard, the utility company’s interim managing director, said that energy markets were subject to “a variety of complex influences which impact our supply chain and keep the cost of services that are crucial to the supply of gas high”.
“Unfortunately, the wholesale price of LPG [liquefied petroleum gas] has increased, as have import costs to the islands, so we have had to increase prices.
“We always keep our pricing a fair reflection of the cost of supplying gas to our customers. We always try and give as much warning as possible ahead of any price changes.”
He added that vulnerable customers could register with Island Energy’s Priority Care scheme.
Jersey Electricity also announced a 7.5% tariff increase from 1 January 2025, adding around £2 per week to the average domestic electricity bill of £1,400 per year.
The company admitted that price rises are "unwelcome" but stressed that customers in the UK pay are around 50% higher than the island, with bills rising by an estimated 66% in the two years to July 2023, and estimates that consumers in the other Crown Dependencies pay around 30% more.
Pictured: JE CEO Chris Ambler said that the electricity company had helped shelter islanders from the worst effects of the "challenging energy environment".
JE’s CEO Chris Ambler explained: “Turmoil in the international energy markets and the onset of Russia’s invasion of Ukraine have contributed to high and volatile wholesale energy prices across Europe and much of the world in recent years.
“Against this backdrop, we are starting to see signs of a more stable energy environment emerge, albeit with higher levels than historically has been the case.
“Our strategy of importing clean renewable electricity from France has helped to maintain relatively stable electricity prices, whilst making necessary investment and future-proofing the island’s electricity network.”
Mr Ambler noted that JE has managed to avoid some of the volatility seen elsewhere through the company's supply contract with France, which set fixed prices for around one-third of imported electricity through an agreement lasting until 2027.
A policy of risk management, including hedging – a protective strategy reflecting the attitude of a business toward risk – has also contributed to this outcome, he said.
The JE CEO said this strategy helped JE shelter customers from the worst effects of the "challenging energy environment". He estimated the policy had helped avoid an estimated £200 million in energy costs for the Island, equating to around £4,000 to £5,000 per household, since the Russian invasion of Ukraine in February 2022.
Jersey Water has increased tariffs by 5.7% from 1 January 2025 – adding £26 to an average yearly bill.
The rise, which matches the rate of inflation, equates to 7p per day.
For all but three of the past 20 years, Jersey Water has kept its price increases at or below RPI.
The firm says that the charges reflect the “ongoing challenges of the economic climate” on its operating costs and the investment it is making in its infrastructure to safeguard future supplies.
Pictured: Jersey Water CEO Helier Smith said the utility remains committed to minimising the impact on customers.
CEO Helier Smith said the utility remains committed to keeping increases to a minimum and minimising the impact on customers.
He said: “Acting in the best interests of our customers is our number one priority. We do this by balancing the need to keep bills fair and affordable with investing in critical upgrades to our infrastructure, so that we can continue to provide a high quality, sustainable water supply for customers today and in the future.
“Next year, we are still anticipating a 3. 9% increase in our operating costs, on top of rises in contractor costs for our capital investment programme and an overall decrease in customer demand for water.
“While proportionate, 2025’s tariff will also help alleviate these costs pressures and support our capital investment programme, so we continue to maintain the highest levels of service.”
In line with Jersey Water’s commitment to limit increases in water charges, the utility will make no further price changes before 1 January 2026.
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