Energy firms keep fuel price hike 'under scrutiny'

Energy firms in the Channel Islands say they are keeping the price of fuel under "constant scrutiny" after it rose amid the Middle East conflict.

Iran warned vessels not to use the Strait of Hormuz, a crucial waterway through which 20% of the world's oil and gas is transported after the US and Israel launched airstrikes on the country.

A spokesperson from Islands Energy Group said the spot commodity price for gas had been "very volatile and has risen significantly" since the start of the conflict.

The company is keeping the situation under review and said it will "reluctantly" have to look at its pricing structure if "the recent dramatic rise in gas prices is maintained for any length of time".

The price of gas in the UK soared to its highest level for three years on Tuesday.

Guernsey Electricity said most of the island's electricity supply is imported through a subsea cable to mainland Europe via the Channel Islands Electricity Grid.

A spokesperson said the company aimed to buy energy "at a favourable and stable" price using forward price hedging arrangements.

"This helps to mitigate against price volatility in wholesale energy markets and to ultimately smooth out the immediate impact on electricity tariffs locally."

They said this "sheltered" Guernsey from the "huge increases" in UK electricity tariffs in 2022 after the Russian invasion of Ukraine.

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