Island Energy has announced that gas bills will be increased by 1.2 pence per kWh from April.
The increase was announced today (24 March) due to a 'surge in global wholesale energy costs'.
The increase will be in place from 7 April.
The energy supplier says the rise, of 1.2 pp kWh, is 'temporary.'
Island Energy says it is not making additional profit from the increase:
We want to reassure our customers that Island Energy is not making additional profit from this temporary adjustment.
Our hedging strategy - where we buy future volumes at pre-agreed prices - has helped to limit the extent of this increase and shield customers from even greater instability.
But, Graeme Millar, Chief Executive Officer, Islands Energy Group, says 'if wholesale prices remain elevated as our hedged contracts expire, further price increases will be necessary.'
He explains the reasons for the increase:
"We have been watching the ongoing conflict closely and, despite our hopes that prices would settle, the picture has remained concerning.
"With much of the global oil and liquid natural gas market passing through the narrow Strait of Hormuz, the conflict-related volatility has caused a steep rise in the wholesale cost of gas and is a direct pass-through of the amount we are now paying to secure supply.
"We are watching the situation very closely and sincerely hope prices begin to ease, but the reality is that reductions can only be considered when wholesale rates fall back toward pre-conflict levels.
"Only when sustained and genuine cost decreases occur can we safely reduce tariffs without risking instability in the future.”
The company has written to business and domestic customers to inform them directly about the changes to their bills and to advise them to contact Island Energy’s customer team should they need any help.
Island Energy raised prices by 7.5% in January 2025, following a 12% rise in 2024 while Guernsey Energy put up its prices by 8% in January 2025 having increased the standing charge by 10% the preceding May.
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