Coronavirus: Jersey Gas to temporarily raise prices by 6.5%

Gas prices in Jersey will temporarily rise by 6.5% to offset the cost of the coronavirus pandemic, Jersey Gas said.

The company claimed it had "no other choice" as three weeks of negotiation led to no offers of short-term support from the Government of Jersey.

The government said it was considering "all steps available" to see the company "acts appropriately".

Jersey Gas serves 70% of the island's hospitality industry, which has been forced to shut during the lockdown.

The forced closure of its main commercial customers have had a "severe negative impact" on usage, Jersey Gas said.

The impact of these losses were threatening the "safe and secure" supply of gas to both private households and businesses, the private utility added.

The price hike will begin from 1 May.

Managing director Ian Plenderlith said: "We understand the financial challenges many of our personal and commercial customers will be facing at the moment, and we are very sensitive to adding additional financial burden at a time like this, but we have simply been left with no other choice."

The government said no support had been given because Jersey Gas had not supplied "vital financial information on their business and their parent company", despite multiple requests.

Minister for Economic Development Lyndon Farnham said an "increase of this magnitude" was "particularly insensitive" at this time.

Senator Farnham said: "[I] will consider all steps available to government - including those provided for under the Jersey Gas Company (Jersey) Law 1989 - to see that Jersey Gas acts appropriately."

Under the law the government can set the firm's tariffs and buy out the company as long as 12 months' notice is given.