Last checked at 25 Jan 2011 07:00
Jersey Electricity plc
Interim Management Statement
Jersey Electricity plc 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 2010 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 rose by 8% compared to the same period in the prior year. The targeted growth for the quarter had been around 6% due to anticipated underlying sales growth and because the corresponding period in 2009 had been milder than the long-term average. However the coldest December weather in Jersey for nearly 80 years, produced unit sales in that month 11% higher than last year. The revenues in our Energy Division rose by 2% due to the higher unit sales, year-on-year, but were offset by the 5% reduction in our tariffs from January 2010.
In the period from 1 January to the date of issue, electricity unit sales were at a slightly lower level than last year, when Jersey Electricity experienced its highest ever recorded level of peak system demand.
We announced to customers that following our tariff reduction of 5% from 1 January 2010 that prices would remain frozen at current levels until at least the end of 2011. Our power purchase and foreign exchange requirements are materially hedged for the remainder of this financial year. In addition, 60% of our forward imported power and foreign exchange requirements for requirements for 2012 have been hedged.
The combined trading performance of our other business units was ahead of the corresponding period in the last financial year.
The project to build a 90kV switching station at South Hill commenced in April 2010 and will become a critical network hub connecting the on-island grid to the submarine cables and our La Collette standby generation facility. The project is running on schedule and to budget and is anticipated to be completed by August 2011 at an estimated cost of £10m. This will feed into our new 200 MW grid system which will be completed over the next 6 to 7 years.
The cash balance at the end of December 2010 was £23m being at a similar level to that at the last financial year end. 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 similarly healthy condition, and there have been no significant changes in the overall financial position of Jersey Electricity plc since we issued our Preliminary Announcement on 17 December 2010 for the year ended 30 September 2010.
25 January 2011
For further information, please contact:
Chris Ambler, Chief Executive Tel: 01534 505320
Martin Magee, Finance Director Tel: 01534 505201