The States are asked to decide: Whether, after consideration of the policy letter titled Guernsey Electricity – Electricity Strategy Implementation Programme dated 9th November, 2026, they are of the opinion: 1. To agree that, in accordance with the provisions of Section 4 of this policy letter, the security of supply criteria shall be N-1 when Guernsey Electricity enters into a contract for the supply and installation of an additional interconnector into Guernsey and N when that interconnector enters operation, to ensure a cost optimal approach to on-island generation infrastructure investment.
2. To authorise the Policy & Resources Committee to: (a) provide loans or loan guarantees: firstly, for a second interconnector, subject to the States’ Trading Supervisory Board’s approval of Guernsey Electricity’s business case and recommended interconnector route; and, secondly, for the refinancing of Guernsey Electricity’s existing private sector borrowings. (b) enter into new borrowing on such terms and conditions as the Committee deems appropriate to lend on to Guernsey Electricity for the purposes set out in Proposition 2(a) and to be repaid by Guernsey Electricity over a term and at a rate determined by the Committee to ensure that there are no residual costs to the States of Guernsey.
3. To agree that the authorities set out in Proposition 2 above shall be limited to the following: (a) In the case of the second interconnector, a sum not exceeding £136m for the Jersey-Guernsey 2 route option or £253m for the Guernsey-France 1 route option, as set out in Section 9 of this policy letter; (b) In the case of the refinancing of Guernsey Electricity’s existing private sector borrowings, a sum not exceeding £51m as set out in Section 7 of this policy letter. 4. Subject to the approval of Proposition 1, to rescind Resolution 2(d) of Article I of Billet d’État XIII of 2023, as set out in Section 11 of this policy letter.