The maximum unit price that Sark Electricity Limited (“SEL”) can charge for electricity will increase from 48p/unit to 52 p/unit from the 1st November 2023.
This price increase is because of the monthly correction mechanism in the price control which has been in place since 1st April 2023. This mechanism compares actual fuel prices and demand to what was forecast in the price control and, once a certain threshold is reached, a change to the maximum unit price is triggered.
The maximum unit price was initially set at 53 p/unit and, due to a significant fall in fuel prices since April 2023 and increased demand over the summer months, this was reduced to 44 p/unit for August 2023 and then again to 40 p/unit for September 2023.
Unfortunately, international fuel prices have risen sharply since the summer and are now almost 11% higher than what was forecast in the price control. Although this has been partly offset by continued increased demand, it is now necessary to increase the maximum unit price again to almost the same level that was initially set in the price control.
Any further changes to the maximum unit price over the winter months will be influenced by changes in fuel prices and demand compared to the forecast, and by any capital expenditure which is proposed by SEL and approved by my office.
The monthly connection fee will remain capped at £10/meter and the monthly standby charge for own-generators will remain capped at £5/KW of installed capacity.
Please do not hesitate to contact me at the e-mail address below if you have any queries.
Shane Lynch
Electricity Price Commissioner
©2024 Electricity Prices Control Commissioner, Sark, Channel Islands
