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17 Jul 2009 16:25
Jersey Electricity Company Limited
Interim Management Statement
The Jersey Electricity Company Limited is today publishing an Interim Management Statement as required by the revised UK Listing Authority's Disclosure and Transparency rules, relating to the period from 1 April 2009 to the date of issue of this announcement.
In the quarter to 30 June 2009, unit sales of electricity in our Energy business were 1% lower than the same period last year. Unit sales for the month of July to date are at a similar level to those 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 requirements are materially hedged for the remainder of this financial year. Forward imported power requirements for 2010 have been substantially hedged but at levels well below those underpinning our 2009 customer tariffs. However the weakness of Sterling has offset a large proportion of the benefit from such power purchase hedging.
Our other business units, at a total level, traded behind the corresponding financial position in the last financial year in both the last quarter and the year to date with our Retail business in particular being impacted by the slowdown in the economy.
The States of Jersey's Minister for Economic Development is commissioning a review of the Company's tariffs, following the 24% tariff 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 to be taken into account in setting tariffs, reflect closely those adopted by the Board and we are therefore confident that the review will confirm the appropriateness of the current level of the Company's tariffs. Otherwise the 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 of June 2009 was £15m being £1m lower than the level as at the last financial year end due to continued electricity infrastructure spend. 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. Our balance sheet remains in a similar financial state to that issued at our half year and there have been no significant changes in the overall financial position of the Jersey Electricity Company since the issue of our Interim Report for the six month period ended 31 March 2009.
17 July 2009
For further information, please contact:
Chris Ambler, Chief Executive Tel: 01534 505320
Martin Magee, Finance Director Tel : 01534 505201
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