Island Energy has announced that gas bills in Jersey and Guernsey will go up by approximately 5% from 1 December.
The increase of 1 penny per kilowatt-hour (kWh), will apply to mains gas, mini bulk tank and cylinder tariffs for domestic and commercial customers.
It is on top of the last gas price rise, which was in March, when bills went up by 5%.
Read: Gas price increase for Guernsey and Jersey
At the time, Island Energy told its customers the rise was 'temporary' due to a 'surge in global wholesale energy costs'.
It now says the subsequent price hike is due to a sustained increase in wholesale gas, along with the cost of 'transporting and handling' imported fuel:
"Global supply pressures, competition for available cargoes and disruption to Middle Eastern exports and shipping routes have contributed to higher costs. LPG prices have also been affected by seasonal and petrochemical demand, changing European supply flows and elevated freight costs."
Graeme Millar, Chief Executive Officer of Island Energy, said:
“We recognise that any price increase is unwelcome, particularly during winter. Buying a proportion of our gas in advance helps us reduce the impact of short-term market volatility, but it cannot fully protect customers from sustained increases in the cost of fuel and bringing it to Jersey.
“We will continue to monitor wholesale markets closely, manage our purchasing carefully and keep tariffs under review. If you are worried about paying your bill, please contact our customer team as early as possible so we can discuss the support available.”
Island Energy says it is still committed to reversing the spring increase as and when the market conditions allow.
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