Last checked at 23 Jan 2009 07:00
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 October 2008 to the date of issue of this announcement.
In the thirteen week period since the beginning of the financial year to the end of December the unit sales of electricity and revenues in our Energy business rose by 2%.
We increased tariffs to customers by 24% from 1 January 2009 in response to a rise in import costs of electricity from the same date of around 40% compared to last year. Our power purchase and foreign exchange requirements are materially hedged for the remainder of this financial year. In December 2008, a 3 year deal was struck with EDF, our existing European power supplier, to cap the maximum Euro price we will pay for wholesale electricity until 2012. In addition, the contractual structure allows us to participate in any opportunities arising from a potential fall in market prices. This new agreement removes some of the unprecedented price volatility seen in the last few years. However, the Sterling/Euro exchange rate movements over the last quarter is a further challenge and a refined strategy is being formulated on how best to hedge our foreign currency position for future years.
Our other business units, at a total level, traded on a par with the corresponding quarter in the last financial year.
The £13m project to upgrade the electricity infrastructure in the west of Jersey, initiated in 2006, was successfully commissioned in October 2008. Work continues on the project to deliver a third interconnector between Jersey and France by 2013 with planning permission expected during 2010.
Our balance sheet remains strong and there have been no significant changes in the financial position of the Company since the issue of our Preliminary Announcement on 17 December 2008 for the year ended 30 September 2008.
23 January 2009
For further information, please contact:
Chris Ambler, Chief Executive Tel: 01534 505320
Martin Magee, Finance Director Tel: 01534 505201