The States of Guernsey said it would give Alderney Electricity £200,000 to offset islanders’ bills.
Electricity bills in Alderney will be subsidised for the rest of the year if the cost of a barrel of crude oil exceeds $100 (£75).
The current price of crude oil is $99.76 (£74.81), according to the Financial Times, external.
The States of Guernsey said it would give Alderney Electricity (AEL) £200,000 to offset bills on the island, which has a population of 2,167.
Its Policy and Finance Committee approved the temporary subsidy to help mitigate the impact of short-term increases in global prices on island electricity consumers.
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Jeannie Cameron, who chairs the committee, said the funds would be applied directly to customers’ bills.
She said: “The recent rise in global oil prices has the potential to place additional financial pressure on households and businesses at a time when many are already managing increased costs.
“This temporary measure provides a level of protection against exceptional fuel price increases while ensuring that public funds are only used where they are genuinely needed.”
Cameron said unlike its sister islands Guernsey and Jersey, Alderney did not have cable supplying electricity from France.
“Diesel fuel is required to generate it,” she added.
“The committee recognises that this temporary subsidy complements, rather than replaces, AEL’s continuing work to secure the most competitive wholesale fuel procurement arrangements available.”
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