17 Jul 2009 16:25
Jersey Electricity Company Limited
Interim Management StatementΒ
The Jersey Electricity Company Limited is today publishingΒ anΒ Interim Management Statement as required by the revised UK Listing Authority's Disclosure and Transparency rules, relating to the period from 1Β April 2009Β toΒ the date of issue of this announcement.Β
In theΒ quarterΒ toΒ 30Β JuneΒ 2009,Β unit sales of electricity in our Energy businessΒ were 1% lowerΒ thanΒ the same period last year. Unit salesΒ for the month ofΒ July to date areΒ at a similar level to thoseΒ experienced in 2008.
In the 9 month period to 30 June 2009 unit sales of electricity were 1% higher than in 2008 and electricity revenues in the Energy business were 13% higher. This is due to a tariff rise which took place on 1 January 2009.
Our power purchase and foreign exchange requirementsΒ areΒ materiallyΒ hedged for theΒ remainder of this financial year. ForwardΒ importedΒ powerΒ requirementsΒ for 2010 have been substantially hedgedΒ butΒ atΒ levels well belowΒ those underpinning ourΒ 2009 customer tariffs. However the weakness ofΒ SterlingΒ has offset a large proportion of the benefitΒ fromΒ suchΒ power purchase hedging.Β Β
Our other business units, at a total level,Β tradedΒ behindΒ the corresponding financial position inΒ the last financial yearΒ in both the last quarter andΒ the year to dateΒ with our Retail business in particular being impacted by the slowdown in the economy.
The States of Jersey's Minister for Economic DevelopmentΒ is commissioningΒ a review of the Company's tariffs, following the 24%Β tariffΒ increase earlier this year. Article 22 of the Electricity (Jersey) Law 1937 permits the States to determine the tariffs set by the Company, having regard to a number of specified matters. The matters specified in the Law required toΒ Β beΒ taken into account in setting tariffs,Β reflect closely those adopted by theΒ BoardΒ andΒ weΒ are therefore confident that the review willΒ confirm the appropriateness of the current level of the Company's tariffs. Otherwise theΒ anticipated principal risks over the second half of the financial year and beyond remain as stated in our 2008 Annual Report and Accounts.
The cash balance at the end ofΒ JuneΒ 2009Β wasΒ Β£15mΒ beingΒ Β£1m lower than theΒ level as atΒ the last financial year endΒ due to continued electricity infrastructure spend.Β It is anticipated that such cash resources will be absorbed in the delivery of the planned capital expenditure programme on electricity infrastructure in the short to medium term.Β Our balance sheet remainsΒ inΒ a similarΒ financial stateΒ to that issued at our half yearΒ and there have been no significant changes in theΒ overallΒ financial position of the Jersey ElectricityΒ CompanyΒ since the issue of our Interim Report for the six month period ended 31 March 2009.
17Β JulyΒ 2009Β
For further information, please contact:
Chris Ambler, Chief Executive Tel: 01534 505320
Martin Magee, Finance Director Tel : 01534 505201
Follow the stocks