Andrew Riseley, the regulator's chief executive, said market studies in 2013 would be aimed at reviewing grocery, gas, heating oil and fuel prices.

BBC: Guernsey grocery, gas, oil and fuel prices to be reviewed

Although electricity bills would fall, the price of gas (the most popular home-heating fuel) would rise.

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Households with oil-fired central heating, and those using solid fuel or liquid petroleum gas to heat their homes, are much more likely to be in fuel poverty than "on-grid" households.

BBC: Winter Fuel Allowance Payments Bill

The report insists that, in hand with a combination of energy efficiency and fuel-switching measures, this growth in electricity production would be enough to supplant all fossil fuel use (coal, gas and oil), including that for transport and space-heating.

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Four million households in the UK are not connected to the mains gas grid and people in this situation generally have very little choice in their source of heating fuel.

BBC: Winter Fuel Allowance Payments Bill