Jersey Electricity Plc Annual Report 2023

FY2023 Annual Report · Jersey Electricity Plc

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Inspiring
a zero-carbon
future

Annual Report and Accounts 2023

JERSEY ELECTRICITY Annual Report and Accounts 2023

STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

Inspiring a
zero-carbon future

Jersey Electricity Plc is the sole supplier of electricity
in Jersey, serving over 53,000 business and residential
customers. The Company’s operations include the
importation, transmission, distribution, generation and
supply of electricity as well as a range of energy related
services and solutions.

Directors, Officers and Professional Advisers

NON-EXECUTIVE DIRECTORS
Phil Austin MBE
FCIB, FCMI (Chair)

Alan Bryce
MSc, CEng, FIET

Wendy Dorman
BA, ACA

Tony Taylor
BSc (Hons)

Amanda Iceton
BA (Hons)

Kayte O’Neill
BA (Hons)

EXECUTIVE DIRECTORS
Christopher Ambler
Chief Executive
BA, MEng, CDipAF,
CEng, MIMechE, MBA

Lynne Fulton
Chief Financial Officer
BA (Hons), ACCA

SECRETARY
Fiona Wilson
LLB (Hons), B Com

REGISTERED OFFICE
Queen’s Road, St. Helier, Jersey

PLACE OF INCORPORATION
Jersey Electricity Plc (‘the Company’)
and Jersey Offshore Wind Limited and
Jersey Deep Freeze Limited (together
‘the Group’) are incorporated in Jersey.

AUDITORS
PricewaterhouseCoopers CI LLP,
37 Esplanade, St. Helier, Jersey, JE1 4XA

BANKERS
Royal Bank of Scotland International Limited,
71 Bath Street, St. Helier, Jersey

BROKERS
Canaccord Genuity Wealth Management,
PO Box 3, 37 The Esplanade, St. Helier, Jersey

REGISTRAR
Computershare Investor
Services (Jersey) Limited,
13 Castle Street, St. Helier, Jersey

JERSEY ELECTRICITY Annual Report and Accounts 2023

STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

Contents

How we performed in 2022/2023

STRATEGIC REPORT

Chair’s Review

Chief Executive Officer's Review

Purpose, Vision and Values

Our Key Strategic Priorities

Our Business Model

Embedding Sustainability

Net Zero - Delivering Sustainable Climate Action

Operational Review

Technology Development

STRATEGIC REPORT - Stakeholders

Our Stakeholders - Enhancing Our Customer Experience

Our Stakeholders - Our People

Our Community, Our Environment and Our Island

Financial Review

Group Risk Management

DIRECTORS REPORT

Board of Directors

Directors Report - for the year ended 30 September 2023

Corporate Governance

Nominations Committee Report

Audit and Risk Committee Report

Remuneration Committee Report

FINANCIAL STATEMENTS

OTHER INFORMATION

Our TCFD Disclosures can be found on pages 22 - 33

126

JERSEY ELECTRICITY Annual Report and Accounts 2023

How we performed in 2023

Our Key Performance Indicators (KPIs) are
quantifiable measurements which help gauge
overall performance and guides our decisions
on our operations and strategy.

£125.1m

REVENUE

£14.9m

PROFIT BEFORE TAX

7.9

EMPLOYEE
ENGAGEMENT SCORE

18.8p

ORDINARY DIVIDEND
PER SHARE

6.2%

RETURN ON ENERGY
ASSETS (5-YEAR
ROLLING AVERAGE)

JERSEY ELECTRICITY Annual Report and Accounts 2023

CO2 LEVEL
(gCO2e/kWh)

80.3

CUSTOMER
SERVICE SCORE

608m

UNIT SALES OF
ELECTRICITY

3 LOST TIME

INJURIES

4 CUSTOMER

MINUTES LOST

JERSEY ELECTRICITY Annual Report and Accounts 2023

STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

Chair’s Review

“We are working very closely with
the government supporting the
implementation of the Carbon
Neutral Roadmap. Myself and
Senior Managers regularly meet
with the Council of Ministers.”

JERSEY ELECTRICITY Annual Report and Accounts 2023

STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

£125.1m

GROUP REVENUE

£11.4m

PROFIT AFTER TAX

Phil Austin MBE leads a highly
experienced team of Executive and
independent non-Executive directors
providing strategic leadership and
robust corporate governance to
promote the long-term success of
the Company.
Performance
The Group has achieved another solid year of operational and
financial performance and is strategically well-positioned for
the future. Wholesale prices have eased in the last year, but
they remain high in relative terms, in what continues to be a
challenging economic environment.

Our Energy Business delivered a Return on Assets of 7.2%
in the year, restoring the under recovery of costs from prior
years and bringing the 5-year rolling average to 6.2%, within
the target range of 6%-7%.

We implemented a 5% rise in tariffs in January 2023 to help
keep pace with wholesale prices but, due to our strong
hedged position, and coupled with contractual provisions,
we have been able to significantly shelter Islanders from the
recent turmoil in energy markets. However, whilst wholesale
prices have recently come down, they remain well above our
long term hedged position and therefore we expect further
upward pressure on retail prices over the next few years.

To give customers some certainty over the coming winter,
we announced a further 12% tariff rise in June, to take
effect from January 2024. As we look forward to 2025–2027,
approximately one third of our energy is already hedged
at fixed prices and our focus now is on transitioning our
customers through this difficult period, whilst keeping bills
as stable and at as low a cost as possible.

Our other businesses within the Group continued to perform
in line with expectations, providing consistent year-on-year
returns.

The Board has recommended a final dividend for the year of
11.40p, a 6% rise on the previous year, payable on 15 March
2024.

Climate Change
In April 2022, the UK became the first G20 country to introduce
legislation, making it mandatory for large businesses to
disclose climate-related financial information in line with the
Taskforce on Climate-related Financial Disclosures (TCFD)
recommendations. At Jersey Electricity, we have made
significant progress towards establishing our net-zero strategy,
together with key priorities, metrics and targets. Details of
our progress are set out on pages 22-33 and throughout this
report.

We are continuing to work very closely with the Government
in supporting the implementation of the Carbon Neutral
Roadmap, and myself and senior Managers regularly meet with
the Council of Ministers to discuss key energy related issues
and opportunities.

JERSEY ELECTRICITY Annual Report and Accounts 2023

STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

Chair’s Review (continued)

“ I wish to thank all our teams and fellow Board
members for their hard work and dedication this
past year, as well as our shareholders for their
continued support.”

Energy Security
This year we completed a review of our Supply Security
Standard. The review was driven by the recent energy crisis,
the demands of the Government of Jersey’s (GoJ) Carbon
Neutral Roadmap (CNR) and the French fishing dispute of
2021.

Following this review, and subject to us securing long term
tenure on our site at La Collette, the Board has approved a
four-year £22.6m project to enhance our on-Island emergency
generation capacity at La Collette Power Station (p35).

While we continue to deploy solar PV across the Island, with
a view to increasing energy sovereignty and supply diversity
long-term, as well as supporting the local economy, we have
at the same time continued more detailed investigations into
the viability of offshore wind generation and how it might
integrate into Jersey’s future energy system. We are actively
engaging with GoJ to determine the future approach and the
role Jersey Electricity Plc (JE) should play in the development
of such a project (p26).

Corporate Governance
The UK Corporate Governance Code 2018 requires the Board
to set key areas of focus for the year. In 2023 these included:

• Progressing stakeholder engagement

• Building on our cultural values of employee engagement,

diversity and inclusion

• Helping customers become more energy efficient to cut

costs

• Investing in the network to facilitate Jersey’s net-zero goal

We have made good progress in all these areas and more
detail is provided throughout this report. There are also
reports from the Nominations Committee, Audit & Risk
Committee and Remuneration Committee on pages 80-83
and 84-87.

JERSEY ELECTRICITY Annual Report and Accounts 2023

STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

The Board has determined its key areas of
focus for 2024 to be as follows:

1. Working with stakeholders, planning for and making

demonstrable progress towards Jersey’s net-zero goal,
whilst continuing to reduce the Company’s own carbon
footprint.

2. Continue to address affordability by helping customers
with energy efficiency, and delivering our products and
services as sustainably, and at as low a cost as possible.

Senior Appointments

Finance Director, Martin Magee, advised us in August 2022
of his intention to retire during 2023. On behalf of the Board,
I would like to thank him for his significant contribution to
Jersey Electricity’s success over the past 21 years, and for the
advanced notice of his decision, which enabled the search for
his successor to be completed in good time. We were therefore
delighted to appoint Lynne Fulton to the Board on 26 July.
Lynne brings valuable experience of utilities from previous
positions at United Utilities and Electricity Northwest. Her
knowledge of energy markets is also particularly valuable
in leading our energy hedging activities and in developing
our future energy sourcing and product strategy, which is of
paramount importance.

We were also pleased to appoint Fiona Wilson as our new
Company Secretary in July 2023. Fiona joins us from the Collas
Crill Group and is a qualified lawyer. She has considerable
experience gained from both in house and private practice,
supporting clients on a range of legal and Company Secretarial
matters, and we are already benefiting greatly from her skills.

Thank You
Throughout all the challenges during 2023, none was greater
than Storm Ciaran. The impact of the storm on the Island was
severe and the effect was devastating, but the Community
pulled together and responded in a remarkable way. I saw at
first hand the work of the Jersey Electricity teams out in the
field in the immediate days after the storm and how the rest
of our Staff supported them and our customers during that
difficult period. They all should be very proud of the enormous
contribution that they made.

Finally, I would like to thank our Executive and Non-Executive
Directors and colleagues at all levels throughout the business
for their continued hard work and dedication. In difficult
circumstances they have exceeded expectations and Jersey
Electricity is now well poised to take advantage of many future
opportunities.

P. AUSTIN
Chairman
20 December 2023

“ We continue to deploy
solar PV across the Island,
with a view to increasing
energy sovereignty and
long-term supply diversity.”

JERSEY ELECTRICITY Annual Report and Accounts 2023

STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

£97.1m

ENERGY REVENUE
UP 8.3%

£9.3m

ENERGY BUSINESS
PROFIT
(EXCLUDING REBATE
FOR PAST ENERGY COSTS)

Chief Executive’s
Review

Jersey Electricity continues to demonstrate
great resilience during what remain
challenging and uncertain times for
energy companies across the globe.

Although the turmoil and soaring wholesale prices that beset energy
markets last year have eased, wholesale prices are still significantly
higher than historical levels and we remain in a challenging economic
environment.

Despite continued and significant upward pressure on our importation
costs, we have been able to greatly shelter our customers from the
significant tariff rises that have been experienced elsewhere. We have
also continued to invest in delivering action to support the Government
of Jersey (GoJ) and its ambition to achieve net-zero by 2050.

Pricing

Our focus is on delivering secure, low-carbon electricity supplies and
maintaining relatively stable and competitive tariffs now and in the
future. Our contractual arrangements with EDF cover imported electricity
supplies to the end of 2027 and we are already actively exploring the
shape of, and options for, a new contract.

In January 2023 we implemented a tariff rise of 5%, and to provide
our customers with more certainty over the 2023/24 winter period,
we announced, in June 2023 a further 12% rise, effective from 1 January
2024. Even with these rises, our standard domestic tariff continues to
benchmark well against other jurisdictions, in particular against the UK
whose equivalent tariffs are more than 60% higher.

Around one third of our electricity requirements are hedged at
largely fixed prices and our risk management policies covering power
procurement and foreign exchange, coupled with price protection
measures negotiated within our supply contract from France, have
enabled us to secure strong, long-term hedges.

Our strategy is to import competitively priced, low carbon power from
France, from nuclear as well as certified hydro-electric sources, whilst
continuing to work hard to reduce the costs of island sourced renewable
energy to make them viable. We are now successfully building a position
in larger scale solar and actively exploring offshore wind. At the same
time we are monitoring the progress of new tidal technologies to see
where and how they could be test-deployed in local waters.

Financial performance

Group revenue for the year to 30 September 2023 increased year-on-year
by 6.5% to £125.1m. This was largely due to an 8.3% increase in Energy
revenues to £97.1m. Group Profit Before Tax of £14.9m compared to
£10.6m in 2022. The profit increase is attributed to £1.3m from operations,
£1.6m income from interest earnings, a rebate of £3.6m relating to prior
year wholesale energy costs and following a full review, our property
portfolio was devalued by £1.2m. Underlying profit before tax, after
removing the impacts of the rebate and property valuation was £12.5m
in 2023 against £9.6m in 2022.

JERSEY ELECTRICITY Annual Report and Accounts 2023

STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

“ Our focus is on delivering
secure, low-carbon
electricity supplies and
maintaining relatively
stable and competitive
customer tariffs now
and in the future.“

JERSEY ELECTRICITY Annual Report and Accounts 2023

STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

Chief Executive’s Review (continued)

“ Our people are vitally important to achieving our
Vision to inspire a zero-carbon future and none
of our achievements would be possible without a
committed and engaged workforce.“

Financial Performance (continued)

Renewables

We imported 94.9% of Jersey’s electricity requirements from
France, with the remainder from on island sources resulting
in a carbon intensity of distributed electricity of 25gCO2e/
kWh for the financial year. We generated 0.4% of our electricity
on-Island from our solar and diesel plant, with the remaining
5.1% coming from the GoJ’s Energy from Waste plant. Unit sales
at 608 million kWhs were down 0.8% on last year’s 613 million,
due to the combination of a mild winter and energy efficiency,
which we have been promoting actively via our MyJE app and
other measures, offsetting growth from fuel switching.

Achieving Net-Zero - Sustainable Climate Action

As our awareness of the need to act in response to a global
climate emergency grows, so too does the importance of
ensuring we understand how we achieve the Company’s net-
zero ambitions in a truly sustainable manner that adds value
to our communities and our island. Our focus continues to be
to help customers consume less energy and utilise smart data
and innovative solutions to enhance knowledge and insight for
customers. In addition, this supports the optimisation of our
own transitional capital investment over the next 10 to 15 years.

The GoJ’s Carbon Neutral Roadmap, approved in April 2022, sets
the direction of travel for net-zero and aligns with our Vision to
“inspire a zero-carbon future”. The first £23m of Government
funding from the Climate Emergency Fund has been secured
for the first four years of the roadmap and we are pleased that
funding is beginning to flow into positive action to encourage
delivery of low-carbon heating and transport.

This year, at the request of the GoJ, we helped to shape the
Low Carbon Heating Incentive scheme (LCHI), which launched
in May 2023, and we are also managing the process of a
similar grant incentive scheme to encourage uptake of electric
vehicles, which launched in September 2023.

In further support of the Carbon Neutral Roadmap and
in line with our Sustainability Framework ‘to be leaders,
working collaboratively with others in the drive to Jersey’s
net-zero future’, we have also been working with the GoJ
Decarbonisation Unit to help reduce the Government's own
emissions, and we have created a joint GoJ-JE Electric Transport
Working Group to accelerate electric transportation initiatives.

To further facilitate the Roadmap, we have this year successfully
delivered a complex project to upgrade our Evolve public
charging platform including the refresh of 54 chargers (108
charging spaces) as well as improving the customer interface,
back office processes and product development capability and
to future-proof the public network. Our all-inclusive home EV
charging subscription service, EasyCharge, which launched in
May 2022, has proved popular with customers, and won the
Best Use of Innovation award at the 2023 Jersey Construction
Council Awards and the UK national 2023 EVie Awards.

We have continued to increase our solar PV generation capacity
to increase energy sovereignty and diversify supplies and we
aim to increase on-Island solar PV generation to 20MWp by the
end of 2026. Our focus is now on faster delivery of renewables
via ground-based solar using low grade agricultural land that
has limited alternative uses. Our 4.9MWp array in St Clement
received formal planning consent during the year and is due
for construction in 2024, while a 3MWp array scheduled for
Sorel on the north coast is presently being considered for
planning approval. Furthermore we are continuing to make
good progress in securing options on newly assessed land that
is suitable for ground solar, with good grid proximity and low
visual impact, and which we hope will be developed in
the future.

This year we accelerated our research into offshore wind
generation and have been working with independent
advisors to assist us in defining the role JE should play in such
a development and how this might be most helpful to the
Government of Jersey. We have regularly engaged with the
Government’s Future Energy Group (a subcommittee of the
Council of Ministers) and our partners to explore how this can
be most effective.

Customer Experience

This year we have invested in technological innovation,
communications and employee training to improve customer
experience across the business. We are therefore delighted
to have achieved our highest ever rating of 80.3 in the UK
Customer Satisfaction Index (UKCSI) that benchmarks Jersey
Electricity as top quartile against larger UK utilities. This score
is up from 74.1 last year and well above the 71.7 average of the
35 utilities taking part.

Our People

Our people are vitally important to achieving our Vision to
inspire a zero-carbon future and none of our achievements
would be possible without a committed and engaged
workforce. This means developing a diverse workforce and an
inclusive culture where everyone feels valued, supported and
developed – to achieve their full potential. This continues to be
a strategic priority for the business, and I am pleased that the
results of our annual Employee Engagement Survey continue
to improve, this year producing a score of 7.9 which puts
us towards the upper end of the median segment in the UK
Energy and Utilities sector.

JERSEY ELECTRICITY Annual Report and Accounts 2023

STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

Outlook

Although easing, the macro-economic environment remains
challenging. There continues to be very considerable
geopolitical uncertainty with the continued war in Ukraine
as well as conflict in the Middle East which is at great risk of
escalation – driving uncertainty in the global energy complex.
Whilst wholesale energy prices have eased from a year ago,
they remain much higher than normal levels. Inflation and
interest rates remain problematic at 40 and 15 year highs
respectively and these are also driving up our costs.

Our electricity purchases are well hedged for 2024 and around
one third of our expected 2025-27 requirements are hedged
at largely fixed prices. Current wholesale prices in France
have lowered significantly since the peak in 2022 but remain
substantially higher than our current importation costs and
despite our best efforts, will eventually flow into retail prices.
To help mitigate these increases, Jersey Electricity will continue
its efforts to be as efficient as possible as well as support
customers in helping them to reduce consumption and bills –
whilst at the same time creating new, attractive products and
services to encourage customers out of fossil fuels into more
sustainable low carbon electricity and where possible, locally
generated power.

Despite the very significant uncertainty and the continued
upward cost pressure, this is an exciting time for Jersey
Electricity and as we enter 2023/24, it presents both challenges
and opportunities. In the next twelve months we will be
conducting a comprehensive review of our energy sourcing
strategy including examining our strategic options post-2027
when our current contract with EDF comes to an end, and will
consider the potential interplay with offshore wind post-2032.

We will continue to focus on ”inspiring net-zero in Jersey”
including demonstrating leadership in reducing our own
emissions. This means continued investment in our network,
developing new products, delivering our renewables strategy
and nurturing our people and culture.

We will continue to leverage the strengths of our integrated
network and business model, driving innovation through
customer, digital and operations.

There is no doubt that Jersey Electricity’s people, its assets
and businesses are playing a central role in the community
and across the island in helping to deliver the Carbon Neutral
Roadmap. This represents an enormous opportunity for Jersey,
to benefit islanders at a local level as well as show leadership
across the international community and whilst there is a great
deal still to do, we remain extremely well positioned to deliver
our net-zero ambition.

JERSEY ELECTRICITY Annual Report and Accounts 2023

STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

Purpose, Vision and Values

Our Purpose

Our Purpose is to ‘enable life’s essentials’ by providing
the people of Jersey with secure, reliable, affordable,
and sustainable electricity today and long into the future.

Our
Vision

Our Vision is to ‘inspire a zero-carbon future’ by
being the energy partner of choice whilst working
to seven key success factors of that Vision.

Environment
We support the
Government of Jersey’s
Carbon Neutral Roadmap
by growing electricity’s
share of the energy
market, reducing carbon
emissions, helping to
conserve resources and
protect the environment.

Lifestyle
We aim to enhance
Islanders’ lifestyles and
power the economy by
providing innovative,
low-carbon energy
services and solutions.

Our People
We aim to be an employer
of choice in Jersey, where
employees are engaged,
supported and developed.

Customers
We put customers at the
heart of our business,
giving them choice,
control and value for
money in a transparent
and trusted way.

Technology
We aim to be leaders in the
application of technology,
enhancing efficiencies,
unlocking new services
and digitally enabling
our employees and our
customers.

Investors
We provide fair returns
to our investors over the
medium to long term.

Partnerships
We aim to be the
partner of choice for the
Government of Jersey
and the Island’s parishes,
supporting all their
energy needs.

JERSEY ELECTRICITY Annual Report and Accounts 2023

STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

Our Values

Our
Values

Our six core Values are key to our culture.
They guide the behaviours we expect of each
other as we work together towards our Vision.

Reliability
We are trustworthy,
dependable and
reliable, delivering on
our commitments and
always there when our
customers need us.

Customer Focus
We listen to our
customers and seek to
understand and respond
to their needs, treating
them the way we would
wish to be treated, with
respect and honesty.

Excellence
We continuously strive
to work in a way that
is both innovative and
simple to deliver cost
effective solutions.

Safety
We do everything safely
and responsibly or not
at all – nothing is more
important than the safety
of the public, our customers
and our people.

Responsibility
We accept responsibility
for everything we do,
safeguarding the natural
environment and the
local community, as well
as the interests of all our
customers and people.

Teamwork
We value diversity and
respect and value our
colleagues as individuals.
We believe we are
stronger as a team,
leading to better solutions
and a more enjoyable and
rewarding work life.

JERSEY ELECTRICITY Annual Report and Accounts 2023

STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

Our Key Strategic Priorities

Jersey Electricity's key strategic priorities are focused on delivering a safe,
reliable and efficient service. We recognise our unique role in facilitating
and supporting the island to achieve net zero, ensuring our business is
sustainable and responsive to climate-related risks and opportunities.

Our Six Strategic Pillars:

Future proof
business
model

Digital
enhancement
& innovation

Customer
at the heart of
the business

Enable life’s
essentials and
inspire a zero
carbon future

Great
employer

Robust energy
sourcing
and supply

Island wide
electrification &
decarbonisation

JERSEY ELECTRICITY Annual Report and Accounts 2023

STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

Our strategic priorities are:
• Enable customers to convert domestic and commercial

• Lead in the application of technology to benefit customers

premises to value-for-money, low-carbon electric heating
and cooling solutions.

by providing new and improved services and driving
efficiency in our business.

• Develop affordable local renewable energy solutions.

• Create value for all stakeholders, by providing fair pricing

• Provide private and public electric vehicle networks to
enable a convenient solution that encourages cleaner,
more efficient, electric transport.

• Provide integrated ‘beyond the meter’ services that put

customers at the heart of the energy system.

for customers and fair returns for shareholders.

• Deliver a well-invested network and a highly skilled,
diverse and engaged workforce committed to a
zero-carbon future.

JERSEY ELECTRICITY Annual Report and Accounts 2023

STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

Our Business Model

Our
Business

What We Do

How We Create Value

Generation

Importation

Our generation plant located at La
Collette and Queen's Road provide
resilience to the island in emergency
circumstances

We import low carbon electricity from
France through three submarine
cables. This enables JE to readily access
the European supply market creating
resilience now and in the longer term.

Our renewables strategy is
focused on supporting our
generation and importation
strategy by developing on and
off island capabilities providing
additional resilience and creating
long term energy stability.

Transmission
and
Distribution

Ensuring a safe and resilient service
our transmission and distribution
assets create long term value for all
stakeholders.

Energy
Business

Supply

Providing secure metering services and
developing optimal tariff structures.
Our smart meters provide accuracy
and assist us and our stakeholders in
understanding energy demands.

Beyond the
Meter

Enabling customers to transition to
cleaner, more energy efficient living
we provide solutions to home heating,
e-mobility and support our customers
in being energy efficient.

Retail

Our Retail business provides quality electrical goods at
competitive prices. Our large stock means we can respond
quickly to Islanders’ needs and supports our smart living
ambition.

Our
Other
Business

JEBS/Jendev, Jersey Energy and Property provide building
and consultancy services that complement our core energy
and retail business.

Our Energy Business seeks to
deliver a sustainable ‘return on
assets’ (ROA) to our shareholders,
that enables the Company to
continue to invest for the future
needs of our infrastructure.
We target a ROA of 6%-7%
over a rolling 5-year basis. Our
complementary businesses
operate at arm’s length from the
Energy Business and provide
commercial services to Jersey and
beyond. Our risk management
framework detailed on p56 helps
us meet our strategic, financial
and operational objectives,
enabling us to take measured
risks to incentivise innovation
and growth.

JERSEY ELECTRICITY Annual Report and Accounts 2023

STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

374

JOBS FOR
ISLANDERS

C1,000

SUPPLIERS

23.6k

MY JE APP
DOWNLOADS

6.2%

RETURN ON ASSETS ON
5 YEAR ROLLING BASIS

COMMUNITY
PROJECTS

235

FUEL
SWITCHES

JERSEY ELECTRICITY Annual Report and Accounts 2023

STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

Embedding
Sustainability

As our awareness of the need to act in
response to a global climate emergency
grows, so too does the importance of
ensuring we achieve the Company’s
net-zero ambitions in a truly sustainable
manner that adds value to our
communities and our Island.
Sustainability Framework

The UN’s 17 Sustainable Development Goals (SDGs) are the
global blueprint for a sustainable future.

We recognise that positive outcomes can only occur when
sustainability is embedded across the organisation and our
Sustainability Framework, mapped to the UN SDGs, sets out
our commitments to achieving long term sustainability within
our business strategy.

We are increasing the range of sustainability measurements
we record and will use that data to bring efficiencies to our
operational processes.

Our Island
Our strategy to import low carbon nuclear and hydro power
from France has helped us to reduce emissions from the
supply of electricity in Jersey by over 90% since 1990. However,
it doesn’t stop there. Critical to ensuring the Island's transition
to net zero occurs in a sustainable way, we are continuing to
develop the digitisation of our systems, leveraging smart meter
data to better understand our network. This enables us to
target our infrastructure investment more efficiently to support
the increase in peak demand that net zero would bring.

We also recognise that sustainability means more than
reducing carbon emissions. Protecting wildlife habits and
increasing the biodiversity of our Island is paramount.

Following the success of our three-year woodland restoration
project at Mourier Valley, we have again partnered with the
National Trust for Jersey on its Green Grid project. JE employees
joined volunteers from Jersey Water and JT to enhance the
existing grid of over 37 miles of hedgerows by planting
c1,800 hedging whips across nine fields and covering 21 field
boundaries to provide wildlife corridors across the Island.

At the start of 2023, we returned to Bouley Bay to continue
planting trees under the Parish Earth Partnership which aims to
encourage the community to plant trees and shrubs to enhance
biodiversity. Looking ahead, we will be planting a further 700
metres of whips and hedgerow at our first ground-mounted
solar array in St Clement when works commence in 2024.

Community engagement and collaboration are vital for the
success of these environmental projects, as is education.
We are therefore proud to renew our sponsorship of the
National Trust for Jersey’s Education Programme by funding
the Trust’s full-time Education Officer for a further three
years. The programme educates Jersey’s young people about
key environmental issues and empowers them to preserve
our natural environment for generations to come. This year
sessions have covered five important themes: biodiversity, seas,
pollinators, woodlands and climate change.

Our Footprint
Key to improving our overall sustainability is to fully understand
the extent of, and reduce, our carbon footprint. We have
begun the process of baselining our current position, which
involves working with suppliers and stakeholders to measure
the carbon cost of completing their works. In completing this
activity, Jersey Electricity will also gain a better understanding of
the environmental impact of providing sustainable, affordable
power to an ever-growing proportion of the Island’s population.
In addition, we have pledged to support and engage with our
supply chain who have, or are aiming to, achieve a pathway to
net-zero.

In addition, we have established a new process to remediate,
contaminated soil so that it is no longer a waste product,
creating a positive impact on the environment.

Just under half of our fleet is now fully electric, with the
remaining vehicles set to switch to electric by the end of 2025.

Our People
We have been actively establishing and growing greater
skills within the business, including our newly appointed
Sustainability Business Partner and the Island’s first female
to qualify as a Commercial EPC Assessor.

Jersey Electricity is committed to improving the carbon
literacy of every member of the workforce. This begins with
accessing the Carbon Literacy Programme training scheme to
raise employees’ awareness and understanding. In addition,
we will set in place new procedures and ways of working that
reduce our overall carbon footprint across the business.

JERSEY ELECTRICITY Annual Report and Accounts 2023

STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

• We will seek to deliver an
affordable, secure and
sustainable energy supply
for all islanders.

• We will provide solutions
and services to enable
customer and community
transitions to net-zero.

• We will contribute to

the regeneration of the
Island's ecosystem.

• We will reduce emissions

from our operations.

• We will reduce waste

and drive sustainability
across our business
wherever we can.

• We will build a more

sustainable supply chain.

• We will create champions
of sustainability through
our culture and values.

• We will celebrate diversity,

equality and inclusion
in our organisation.

• We will embed health,
safety and wellbeing in
all we do and develop
our people to be the
best they can be.

Our Island
We will be leaders, working
collaboratively with others
in the drive to Jersey’s
net-zero future.

Our Footprint
We will achieve net-zero
emissions by 2050 and
inspire excellence
in environmental
stewardship.

Our People
We will build a sustainable,
diverse and inclusive
culture, equipping our
people to thrive into
the future.

JERSEY ELECTRICITY Annual Report and Accounts 2023

STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

Net-Zero -
Delivering Sustainable Climate Action

Our long-term strategy is to supply
clean energy services. We do this
by supplying low-carbon electricity
and developing innovative solutions
to enable customers to make the
transition from fossil fuels in a
sustainable manner.
Delivering on Net-Zero (TCFD:Strategy)

Jersey already has a highly resilient, low-carbon grid,
with spare capacity at all voltages. However, the growth in
electricity usage to meet the Island’s net-zero 2050 target is
forecasted to increase peak demand by 25%.

Our focus continues to be to help customers use less energy,
utilise smart data and innovative solutions to optimise the
required transitional investment over the next 10 to 15 years,
reducing the need for excessive network reinforcement.

Our approach to climate change is embedded within our
strategic priorities. These priorities support each part of our
sustainability framework, which include:

• Helping customers save energy.

• Investing in smarter living and low carbon heating solutions.

• Investing in data led technology.

• Supporting widespread use of Electric Vehicles.

• Investing in local carbon sequestration projects

including tree planting.

• Developing partnerships to pursue solar and offshore wind.

Support for Government

During 2023 we have supported the government in faciltating
and providing administrative services to two low carbon
schemes:

• The Low Carbon Heating Incentive (LCHI) scheme launched

in May 2023, which sets a target of 1000 grants to be
delivered by 2025.

• Electric Vehicle Grant Scheme launched in September 2023,
which supports 1,200 EV purchase and 1,000 home charger
installation incentives.

To further support the Carbon Neutral Roadmap and in
line with our Sustainability Framework ‘to be leaders,
working collaboratively with others in the drive to Jersey’s
net-zero future’, we have also been working with the GoJ
Decarbonisation Unit to help reduce the government's
own emissions, and we have created a joint GoJ-JE Electric
Transport Working Group.

Helping Customers Save Energy

Helping our customers save energy is a priority and our
flagship energy-saving mobile application, My JE, launched
in 2021, has been continuously improved to provide our
customers with unparalleled energy insights. The application
not only provides insight to support the business in making
both operational and investment decisions, but also
empowers customers to make positive changes that can
really impact their energy usage.

In 2023, we introduced Pay-As-You-Go capabilities, enhanced
with improved debt management information into the MyJE
app and My JE now boasts over 23,602 downloads. To ensure
inclusivity, we expanded its features with the launch of a web-
based version, accessible via desktop computers and PCs for
those without smartphones.

Further innovation is planned. We are working on an Energy
Advisor, a tool that leverages machine learning to offer
individualised energy recommendations based on customer
consumption patterns and developing our My JE application
into businesses.

Smarter Living and Low Carbon Heating Schemes

The LCHI scheme has temporarily impacted our rate of
domestic fuel switches, down from our record 325 last
year to 235 this year, as customers await approval of grant
applications, however, we are confident of greater fuel
switching success as the scheme moves forward into the
new financial year.

Focus on fuel switching in the public and commercial sectors,
particularly catering and hospitality, has continued with many
new business leads now being evaluated.

JERSEY ELECTRICITY Annual Report and Accounts 2023

STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

“Our aim is to enable customers to transition to an
all-electric solution at a competitive price whilst
providing long term return to both customers
and shareholders.“
Peter Cadiou, Director of Commercial Services

TOTAL CUSTOMERS

53,343

+870 FROM 52,473 IN 2022

TOTAL CUSTOMERS ON
DISCOUNTED HEATING TARIFFS

22,865

+947 FROM 21,918 IN 2022

TOTAL CUSTOMERS ON E20+

5,466

+946 FROM 4,520 IN 2022

TOTAL FUEL SWITCHES

235

-108 FROM 343 IN 2022

JERSEY ELECTRICITY Annual Report and Accounts 2023

STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

Sustainable Climate Action

“ Our all-inclusive home EV charging subscription
service EasyCharge, launched in May 2022
has proved popular with customers, with 150
installations in the first year.“

Electric Transport
Home Charging

In addition to providing administration services to the GoJ
for the Electric Vehicle Grant Scheme, we continue to develop
innovative solutions to support customers in the transition
to electric transport.

Our all-inclusive home EV charging subscription service
EasyCharge, launched in May 2022, has proved popular with
customers, with 150 installations in the first year. The service
helps customers access convenient charging and enables us to
move load from peak times to overnight off-peak periods when
we have spare capacity and energy costs are lower. EasyCharge
was also recognised in the 2023 Jersey Construction Council’s
annual awards, winning the Best Use of Innovation award.

Public Charging

This year we have invested in a complex project to upgrade
our Evolve public charging network of 109 charging points
to future-proof the public network, improve the charging
experience, and support growing demand for low-carbon
electric transportation. The new platform also paves the way
for the development of new products and services.

The upgrade has involved migrating to a new intuitive
technology platform including an improved payment
system which can be accessed through a mobile app. Run in
partnership with Virta, the new platform is compatible with tens
of thousands of public charging points off-Island, including the
UK and Europe, enabling Islanders to charge abroad through
roaming agreements, by using the app or charging tag.

We are currently in the process of securing sites for two
further dual, 150kW, ultra-rapid chargers in the east and west
of the Island to add to our existing one at our Powerhouse
headquarters to enable faster charging for newer cars with
larger batteries.

JERSEY ELECTRICITY Annual Report and Accounts 2023

STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

Total number of electric vehicles registered in Jersey at 30 September 2023*

CARS

2023

2022

VANS

2023
2022

MOTORBIKES

2023
2022

WORK
TRUCKS

2023
2022

302 +61

168 +35

54 +4

2023 ALSO SAW THE FIRST RECORDED ELECTRIC MOTORHOME

*Source: DVS Jersey

1,722 +458

TOTAL

2,247

NEW ELECTRIC
VEHICLES
+559 FROM
RECORDED IN 2022

Looking Ahead
We will focus on several programmes of work including:

• Expanding home charging propositions in 2023/24

to enable multi-residential dwellings with communal,
designated parking spaces to access our EV subscription-
based charging services. This will require agreements and
integration with the new public EV charging platform.

• Developing solutions for Company fleets and hospitality

businesses looking to incentivise customers through new
services.

• Developing the first high-speed EV charging hub for Jersey,
with a roadmap for deploying more charging hubs across
the Island in coming years.

• Exploring the feasibility of developing an Evolve forecourt

solution as the EV market grows in Jersey.

• Continuing to work closely with GoJ and the public through
various stakeholder groups to support the Carbon Neutral
Roadmap Jersey’s net-zero 2050 ambitions.

• Migrating the EasyCharge proposition on to the new Evolve

platform.

JERSEY ELECTRICITY Annual Report and Accounts 2023

STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

Sustainable Climate Action

Renewables

Offshore Wind

Energy sovereignty and the security of imported power supplies
remain areas of focus. We continue to expand our on-Island
solar PV generation capabilities; we have this year expanded
our research into offshore wind generation and appointed
consultants CEPA to help define the role JE should play in the
development of such a project.

Solar PV

Initial scoping of offshore wind development concepts
focused on:

• Physical Infrastructure design.

• Commercial arrangements.

• Allocation of seabed rights.

• Financial and legal structuring.

• Programme for delivery.

The Carbon Neutral Roadmap, Bridging Island Plan and
our customers support local renewables to increase energy
sovereignty, and our progress in utility and commercial-scale
solar PV continues. The 612kWp rooftop array on the Albert
Bartlett potato processing plant, our fifth commercial-scale
array and largest in the Channel Islands, has now been
commissioned.

Our move towards ground-based solar has also gained support.
A 4.9MWp array in St Clement received formal Planning consent
during the year and is due for build in 2024 subject to tender
pricing. The 3MWp array scheduled for Sorel on the north coast
is in Planning and subject to public and statutory comments.

These five areas have been considered in the context of 3
main options:

• Small scale wind farm with a single connection to Jersey.

• 500MW+ wind farm with a direct connection to Jersey

and France.

• 1GW+ wind farm with a direct connection to Jersey,

France and Great Britain.

We have engaged with the government’s Future Energy Group
(a subcommittee of the Council of Ministers) and RTE to seek
initial views from the French distributors regarding the options
being considered.

We have identified two further sites in St Mary’s (5MWp
and 2.8MWp) and are currently finalising agreements and
conducting Planning studies. We are also evaluating two sites in
St Lawrence (c,5MWp) which will go to public consultation when
we have secured contracts as we look to increase on-Island
solar PV generation to around 20MWp by the end of 2026.

Next steps include defining the role(s) JE could perform in any
offshore wind project and agreeing how JE and GoJ could work
together to successfully deliver such a project. GoJ also intends
to invite views from the sector gauge the appetite for such
a project in Jersey Waters and seek feedback on how best to
deliver such a project.

JERSEY ELECTRICITY Annual Report and Accounts 2023

STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

Understanding and Managing our Climate
Related Risks (TCFD: Risk Management)
The Board retains overall accountability and responsibility for
the Group’s risk management and internal control systems
including identifying and assessing climate related risks which
pose physical and transition risks to the business, as well as
providing opportunities to achieve strategy objectives and
net-zero vision.

“ With a clear strategy
in place and a deep
understanding of our
climate change risks and
opportunities we have
made significant progress
in our TCFD compliance.“
Lynne Fulton,
Chief Financial Officer

Climate related risks are incorporated within our Group
Risk Management Framework and are therefore identified,
assessed, and managed in the same way as other risks.

Furthermore, climate change related risks and opportunities
are integrated within our Business Planning process to ensure
strategic priorities and potential impacts of net-zero across
the Island can be understood and aligned with various climate
change scenarios.

Our Planning Horizons
We plan for short-term, medium-term and long-term horizons
to deliver our purpose and Vision in a sustainable way.
Our integrated approach to business planning considers:

• What are the material issues to stakeholders,

and how do they affect the way we create value?

• Our assessment of risks and opportunities.

• Our sustainability commitments, including

transition to net- zero.

Short-term planning for the next financial year sets annual
performance targets for financial and operational performance,
whilst considering delivery of our medium-term goals.

Medium-term planning covers the next five years and is
designed to help us work toward our long-term delivery.
It is focused on maintaining our excellent operational
performance, whilst enhancing our capability, which includes
all our resources, ensuring we fulfil our purpose.

Long-term planning up to 2050 is through which we assess
and manage opportunities and risks such as climate change,
population movements, changes in environmental regulations
whilst maintaining relatively affordable and stable bills with a
modern, responsive service.

Climate Scenario Analysis
Our Business Planning includes scenario analysis to assess
risks and opportunities and the impact of climate change
on the business. We have conducted a feasibility study to
understand actions required to meet net-zero by 2040,
in line with SBTi for the Power Sector to limit global
temperature to 1.5℃ and 2℃.

We are feeding the outcomes of the study into our Business
Planning process to quantify the operational and financial
transitional risks and opportunities to achieve net-zero. This will
ensure that we understand the impact of acceleration to 2040
(from 2050) on our current strategy for the business. We expect
to have completed this work by 30 September 2024.

JERSEY ELECTRICITY Annual Report and Accounts 2023

STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

Sustainable Climate Action

Primary Climate Related Risks and Opportunities

Risk/Opportunity
Type

Physical – extreme weather
(Short to medium term)

Transitional
(Medium to long term)

Unknown changes in
demand (Medium term)

Opportunities
(Short to medium term)

Description

Strategic Response

Acute weather events and chronic
changes to climate could impact
operations for example:

Rising sea levels and flooding could
significantly damage assets and
equipment.

Strong winds could damage power
lines or delay construction projects.

Lack of water may threaten nuclear
plants by disrupting the function of
critical equipment and processes.

Changes in regional weather
patterns threat to impact
renewables.

These risks are associated with the
transition to a low carbon economy.
Changing policies, regulations, and
legislation as measures to address
climate change could result in an
increase in operating costs due to
enhanced emission reporting.

Fluctuations in unit sales of electricity
due to higher demand for electricity
caused by subsidies to switch to
low carbon heating, adoption of
electrical vehicles, energy efficient
produce, requirement for energy
efficient homes, which may result
in larger than anticipated network
reinforcement.

Fluctuations in unit sales of electricity
due to higher demand for electricity
caused by subsidies to switch to low
carbon heating, adoption of electrical
vehicles, energy efficient produce,
requirement for energy efficient
homes, which may result in long-term
asset growth.

Flood surveys to identify substations at risk
undertaken regularly.

Replacement of overhead cables with
underground cables (a small proportion
of the network is overhead cables).

Alternative on-Island capability to
generate energy.

Monitoring weather patterns.

Working with and supporting
the Decarbonisation Unit within
the government.

Future planning scenario analysis

Transport – provide network of reliable public
charging stations for electric vehicles.

Heating efficiencies – support low carbon
heating systems with financing options to
meet our customer needs.

Low carbon lifestyles – help our customers
reduce emissions and become more energy
efficient – My JE App

Partnering with the commercial industry to find
solutions to help reduce emissions from waste.

Renewables – further establishment of solar PV
across the Island and investing into wind.

JERSEY ELECTRICITY Annual Report and Accounts 2023

STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

JERSEY ELECTRICITY Annual Report and Accounts 2023

STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

Sustainable Climate Action

Governing Climate Related Risks and
Opportunities (TCFD: Governance)

Our governance structure and key roles and responsibilities
are set out in the diagram below. The Board retains overall
responsibility for climate related risks and opportunities
and monitors progress of our strategic priorities, ensuring
that the actions and responses to climate change risks are
proportionate to Jersey Electricity.

Role of the Board

The Board has set out a Vision and Strategy which integrates
achieving net-zero for the business as well as supporting and
facilitating the Island’s energy transition into our key strategic
priorities.

The Board has experience with climate related risks and
carbon neutrality, and this continues to be enhanced through
interactions with management, regulators and attending
conferences and seminars.

The Board has delegated the responsibility to the Audit and
Risk Committee for overseeing climate related risks and
opportunities that affect strategic decisions made by the Board.

Our key priorities are integral to our performance management
framework and form part of our corporate scorecard.
The Remuneration Committee assess executive performance
based on achievement of the scorecard and personal objectives.

Management Role

The CEO is ultimately responsible for Jersey Electricity’s
preparedness for adapting to climate changes and driving
our strategy. Our CFO has executive responsibility for risk
management and has established short-, medium- and long-
term planning horizons to ensure the Company has adequate
resources to understand and respond to climate-related
risks. The Executive Leadership team through its groups
and committees is tasked with assessing and enacting the
mitigating actions.

JE PLC Board
Oversight of company strategy and the long term success of JE

The Board delegates certain matters to its principal committees

Reporting

Informing

Audit & Risk
Committee

Nominations
Committee

Remuneration
Committee

Reporting

Informing

Chief Executive and Executive Leadership Team
Responsibility for the development and implementation of JE’s strategy
and objectives rests with the Chief Executive, who is supported by the ELT

Reporting

Informing

Sustainability Steering Group
Executive and senior management oversight
of sustainability performance against our
Sustainability Framework

Disclosures and Reporting Group
Ensure compliance with disclosure obligations.
Considering materiality, reliability, accuracy
and timeliness of information disclosed and
assessment of assurance received

Reporting

Informing

Sustainability Committee and Working Groups
Senior level sponsors and subject matter
experts sets and measure performance

G
N
I
T
R
O
P
E
R

C
I
G
E
T
A
R
T
S

L
A
C
I
T
C
A
T

JERSEY ELECTRICITY Annual Report and Accounts 2023

STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

Pathway to Net-Zero
(TCFD: Metrics and Targets)

The following table shows, at high level, our actions and targets
over the short, medium and long term to achieve our net zero
ambition.

Our strategy and target has been to achieve net zero by 2050,
however, as part of the feasibility study carried out, we are
investigating the incorporation of Science Based Targets and
understanding what acceleration to 2040 would have on the
pathway set out below.

Category

Short-term (3 years)

Medium-term (up to 2035)

Long-term (Up to 2050)

Scope 1

100% Electric Fleet by
2025/26 (where vehicles are
available)

Progress: 48% of our fleet is
now fully electric

Zero Marine gas oil will be
used by 2030.

Support initiative for
production and use of
hydrogen for transport
as a pathway to the
development of grid scale
solutions.

On the basis that OSW
progresses, implement plan
to integrate OSW.

Combination of on island
solutions including
Sustainable Aviation
Fuel (SAF) / Hydrotreated
Vegetable Oil (HVO)
powered conventional
generation, hydrogen-
based solutions, and short-
term storage solutions.

Integrate OSW with other
technologies e.g. hydrogen

Development of solar
penetration where possible.

Achieve a minimum of 5%
solar generation by 2050.

Asset standards include the
most up to date industry
best practice in driving
efficiency of losses in
network assets.

Plan for all upgrading,
building and demolition to
apply circularity principles
in tendering, procurement,
and waste management.

Promote the development
of offshore wind (OSW) in
Jersey.

Develop plans to integrate
OSW into the Jersey supply
mix.

Complete construction of St
Clement (4MWp) and Sorel
(3 MWp) solar sites.

Progress: Planning
permission received for St.
Clement, construction due
to start Q1 2024

Implement a ‘no regrets’
tactical reduction in our
own energy usage.

Gain a commitment from
the supply chain to make
monthly returns regarding
their emissions and
progress on achieving net-
zero.

Only work with suppliers
who have committed to a
net- zero transition.

Tender submissions to
include an environmental
statement.

Plan for the 100% recycling
of end-of-life products.

Establish a process for the
monitoring and reporting
of JE’s impacts.

Follow No Net Loss/ Net
Gain principles.

Embed Taskforce on
Nature-related Financial
Disclosures (TNFD)
reporting requirements in
JE’s data collection.

Calculate the value
of ecosystem service
benefits that accrue from
better management of
biodiversity.

Record the number of
trees planted and use this
to calculate the amount of
carbon sequestrated.

Create biodiversity
champions within the
workforce.

Calculate the carbon
sequestration achieved and
use that as the basis of JE’s
own ‘Gold Standard’ carbon
offset scheme.

Scope 2

Scope 3

Biodiversity

JERSEY ELECTRICITY Annual Report and Accounts 2023

STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

Sustainable Climate Action

Climate Related Metrics

Jersey Electricity Grid (Blended) gCo2/kWh

25.3*

FY23

FY22

22.2

FY21

22.7

FY20

24.5

Electricity from low carbon sources

94.9%

95.3%

95.2%

94.7%

JE on-island solar generated (kWh)

930686

903699

855898

143667

*During winter 2023 on-island generation was partially instigated to support demand issues experienced in France. Although this was for a very
short period only, this did increase our emissions during the year. However, we have also enhanced our data quality and calculation methodology
and a direct comparison between this year and prior years is not applicable.

Scope 1

Amount (yr)

Unit

Emissions Factor
kg per unit

Total kg
CO2e

Marine Gas Oil (MGO) for JE Generation

604,455

Litres

2.76

1,668,296

Fleet Fuel Petrol

Fleet Fuel Diesel

Solar

Sulphur hexafluoride (SF6)

R410A Refrigerant Gases

54,071.10

Litres

2.35

72,167.74

Litres

2.66

930,686

kWh

0.015

2.25

2.00

23,500

1,924

127,067

191,966

13,960

52,875

3,848

Scope 2

Amount (yr)

Unit

Total kg CO2e
Scope 1 Emissions

2,058,174

Emissions Factor
kg per unit

Total kg
CO2e

Importation transmission Losses Nuclear

3,716,000

kWh

Importation transmission losses Hydro

1,976,000

kWh

On-Island Distribution Losses

24,312,023

kWh

21.5

Total kg CO2e
Scope 2 Emissions

14,864

11,856

522,708

549,428

Scope 3

Amount (yr)

Unit

Importation EDF- Nuclear

389,009,090

kWh

Importation EDF-Hydro

219,000,000

kWh

Emissions Factor
kg per unit

Total kg
CO2e

1,556,036

1,314,000

Importation EfW

32,441,821

kWh

331

10,738,243

Total kg CO2e
Scope 3 Emissions

13,608,279

JERSEY ELECTRICITY Annual Report and Accounts 2023

STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

TCFD Compliance

Governance
(P30)

Strategy
(P22-26)

Risk Management
(P27-28)

Metrics & Targets
(P31-32)

Compliant

Partially Compliant

Compliant



Compliant



A. Describe the Board's
oversight of climate
related risks and
opportunities

A. Describe the climate
related risks and
opportunities the
organisation has
identified over the short,
medium, and long term

A. Describe the Board's

oversight of climate risks
and opportunities

A. Disclose the metrics and
targets the organisation
uses to assess climate
related risks and
opportunities in line
with its strategy and risk
management processes







B. Describe management’s
role in assessing and
managing climate
related risks and
opportunities

B. Describe the impact of
climate related risks
and opportunities
on the organisations
businesses, strategy and
financial planning

B. Describe management’s
role in assessing and
managing climate-
related risks

B. Disclose Scope 1, 2, and
if appropriate Scope 3
greenhouse gas (GHG)
emissions and the
related risks





C. Describe the resilience
of the organisations
strategy taking into
consideration climate
related scenarios
including a 2C or
lower scenario

C. Describe how processes
for identifying, assessing and
managing climate related
risks are integrated into the
organisations overall risk
management

C. Describe the targets used
by the organisation to
manage climate-related
risks and opportunities
and performance
against targets

Key:



Compliant



Work in Progress but more to do. Transitional strategy and financial impact including
scenario analysis under development and due to be completed by 30th September 2024.

JERSEY ELECTRICITY Annual Report and Accounts 2023

STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

Operational Review

The Energy Business has performed
well during the year. We have achieved
our lowest ever Customer Minutes Lost
Performance and completed a review
and enhancement to our Security of
Supply Standard as well as offering
greater resilience to our customers.
Demand

Unit sales fell for the second year, down 0.8% to 608 million
kWhs from 613m due to a combination of a mild winter
and energy efficiency offsetting growth. Peak demand at
159MW, recorded on 13 December 2022, was up on last year’s
145MW but well below our highest recorded of 178MW set in
March 2018.

We imported 94.5% (2022: 95.3%) of our requirements from
France and generated 0.4% (2022: 0.3%) of our electricity
on-Island from our solar PV arrays and diesel plant.
We purchased the remaining 5.1% (2022: 4.4%) of our
electricity from the local Energy from Waste plant.

Getting Net-Zero Ready

Jersey already has a highly resilient, low-carbon grid, with
spare capacity at all voltages. Although demand is currently
falling as energy efficiency gains outstrip demand growth, we
forecast a 25% increase in peak demand and a 70% increase in
unit sales to meet the Island’s net-zero 2050 target.

New technologies and a combination of Smart Meter data,
tariff data, asset rating information and asset topography
data are providing valuable insights into the loading of our
network, enabling us to optimise the expected £125m - £150m
of investment needed over the next 10 to 15 years.

Our focus is to continue work to optimise our capability to
enable customers to move from fossil fuels to electrification
as easily as possible. Following a review of our loadings
against UK network cable loading best practice we have
introduced cyclic design ratings that allow circuits to carry
between 30% and 50% more power, reducing the need for
excessive reinforcements.

“ During 2022/23 we
have continued our
great performance
and response.
During the year we
have invested £11m
in our infrastructure
and enhancing our
capability as we start
to implement our
net-zero strategy.“
Mark Preece,
Chief Operating Officer

JERSEY ELECTRICITY Annual Report and Accounts 2023

STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

Supply Security

2023

2022

2021

2020

2019

Customer Minutes Lost

Jersey has an enviable record on supply security with just four
Customer Minutes Lost in 2022/23 and has consistently been
over ten times more reliable than UK distributors over recent
years. The energy crisis in Europe driven by Russia’s war on
Ukraine, the demands of the Carbon Neutral Roadmap and
the 2021 French fishing dispute, which brought threats to
our imported supplies from France, prompted a review of
our Security of Supply Standard.

The review resulted in the Board’s approval, subject to security
of tenure at the La Collette site, to install new Gas Turbines
(GTs) at La Collette Power Station to provide an additional
50MW of capacity at an estimated cost of £14.5m, and the
eventual replacement of an existing Gas Turbine.

Current Supply Security Standard

Jersey Electricity’s system is designed to meet an ‘adapted
N minus 1 security standard’ as follows:

• A 1-in-8-year winter peak demand

• All normal load in the event of the loss on the single
largest submarine cable with France (N minus 1) plus
a simultaneous failure of the largest:
- Diesel generator; and
- Gas turbine

• 75% of peak winter load for 48 hours from on-Island

generation (no simultaneous loss of on-Island capacity)

• No coincidence of the above

Such works require the demolition and removal of a
redundant steam plant that has been progressively closed
over many years.

The whole project is expected to take up to four years at an
estimated cost of £22.6m (excluding the replacement cost
of the GT), with the enhanced Security of Supply Standard
adopted by summer 2028.

Enhanced Supply Security Standard 2027/28
• A 1-in-20-year winter peak demand

• Meet 99% of all demand in a 1-in-3 winter if we lose:

- All supplies from France
- Simultaneous loss of largest on-Island generator

• Meet 100% of demand in a 1-in-10 winter if we lose:

- Any submarine cable
- Simultaneous loss of two largest on-Island generators

• No coincidence of the above

JERSEY ELECTRICITY Annual Report and Accounts 2023

STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

Operational Review

Health and Safety
Safety remains a critical corporate
value. Nothing is more important to
us than the health and safety of our
teams, contractors and customers.

This year we have invested in expanding our Health, Safety
and Environment (HSE) team, adding experience and
knowledge to enable us to shift focus from compliance
to continuous improvement.

Positive Safety Culture

We have also invested in a new HSE platform EcoOnline
- technology that has facilitated a more comprehensive,
efficient and proactive approach to how JE manages incidents,
audits and inspections. The new platform has also helped
us to reframe the way we look at HSE across the business,
enhancing our already positive safety culture.

Training

We have supplemented statutory training obligations in
areas such as Working at Height, Forklift Truck Driving and
Working in Confined Spaces, with the Institute of Safety and
Health (IOSH) managing safety training across the business.
In addition, junior and senior leaders have attended the new
Jersey Safety Council Behavioural Safety Leadership course.

Our commitment to HSE is further demonstrated by
employees across the business volunteering to serve on
external committees including the Health, Safety and
Sustainability subcommittees of the Jersey Construction
Council, the Jersey Safety Council and the Jersey Chamber
of Commerce Building, Housing and Environment Committee,
sharing knowledge and best practice to improve health and
safety across the Island.

To expand our own knowledge, one of our Safety Representatives
from across the business joined two members of the HSE
team at the Energy Network Association’s Health, Safety and
Environment Conference in Dublin where they engaged with
industry leaders and had the opportunity to network with other
HSE teams, discuss best practice and future challenges.

Looking ahead to 2023/24, we will be rolling out a Behavioural
Safety Training programme across the business to continue
our journey from compliance to continuous improvement.

A Special Delivery

A careful collaboration between the HSE and Engineering
teams executed a successful and safe fuel delivery from
La Collette Power Station for the first time in several years.
The high-risk operation from the harbourside involved
detailed planning from an operational and HSE standpoint,
including replacing sections of the pipeline into La Collette.

“ The presence of well-defined policies and
procedures are of paramount importance
in effectively mitigating risks. However,
policies alone, while crucial, cannot fully
suffice. A synergy between ongoing risk
assessment and the identification of leading
indicators is vital in achieving a safe working
environment. “

JERSEY ELECTRICITY Annual Report and Accounts 2023

STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

Our no-blame culture ensures there is no fear in reporting
accidents or near misses, affording the opportunity to meet
these challenges.

In a complex and high-risk environment, regrettably accidents
and incidents can occur. This year saw 3 Lost Time Injuries
(LTIs), none of which were of a serious nature. These 3
incidents resulted in 11 lost working days due to injury.

Approach To Risk

The HSE team employs a comprehensive risk-based
methodology across all operations and activities.

The presence of well-defined policies and procedures
is of paramount importance in effectively mitigating risks.
However, policies alone, while crucial, cannot fully suffice.

A synergy between ongoing risk assessment and the
identification of leading indicators is vital in achieving a
safe working environment. This would be unattainable
without the active involvement and engagement of the
workforce, which is constantly reinforced through training,
HSE Committee meetings and site visits.

This approach also hinges upon a robust reporting culture.
Employees are empowered to question established work
practices and highlight concerns as they arise.

FY23

FY22

FY21

FY20

FY19

Lost Time Injuries

Days Lost

JERSEY ELECTRICITY Annual Report and Accounts 2023

STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

Operational Review -
Other Businesses

Our other commercial businesses
complement our core Energy business,
and their activities are aligned with our
Group purpose, strategies and Vision.
Powerhouse.je

Our Powerhouse retail store has made significant strides
in its market position and operational efficiency despite
a challenging recruitment market. Among this year’s
achievements is authorisation to become the Island’s service
agent for Samsung TV, a testament to our dedication to
providing high-quality services to our customers.

The Powerhouse continues to innovate in the field of electric
transport. We've made substantial progress in developing
our offering, with plans to expand this further in the next 12
months in line with our Vision for a zero-carbon future.

Lastly, we are proud to have won two Innovate Electrical Retail
Awards, being named the Best Omnichannel Retailer and Best
Independent Retailer Superstore is a prestigious achievement
that highlights our commitment to excellence and innovation.

While revenues fell marginally by 1%, profits fell by 22% from
£1.2m to £0.9m, from higher overhead and storage costs.

JEBS

JEBS, our Building Services division which undertakes fuel
switching customers from gas and oil to electric heating and
cooling systems, was temporarily impacted by the launch of
the Government’s Low Carbon Heating Incentive (LCHI) scheme
in May 2023 as customers delayed changing their heating
systems until the scheme was fully implemented and grants
became available. Despite this the business recovered well,
to produce a profit of £0.2m on revenues of £4m,
approximately in line with last year.

The team was also heavily involved in the delivery of the
upgraded public EV charging network involving 54 charging
stations combining 7, 22 and 50kW chargers. In line with
the Group, JEBS as a business unit is pushing ahead with the
reduction of its own carbon footprint by continuing to replace
its fleet of ageing diesel-powered vehicles with fully electric
models. JEBS currently has 13 totally electric vehicles with a
further four on order, leaving just four diesels to be replaced.

JEBS PROFITS

£0.2m

REVENUES OF £4M

Jersey Energy

Jersey Energy, and its sister business unit Channel Design
Consultants in Guernsey, are now the largest MEP (Mechanical,
Electrical and Plumbing) consultancy services in the Channel
Islands. They have completed numerous successful projects
this year, including:

• The Maison de Landes Hotel - one of the best hotels

in Europe designed for people with disabilities.

• A new-build, first-time buyer housing development

in St John.

• The refurbishment of the Le Marais high-rise residential
blocks, which was recognised at the Jersey Construction
Council Awards with the award for ‘Best Project of the
Year Over £10million’.

• The power and cooling infrastructure upgrades of

various telecom exchanges.

• Both new and refurbished States of Guernsey

office accommodation.

“The Powerhouse continues
to innovate in the field of
electric transport. We've
made substantial progress
in developing our offering,
with plans to expand this
further in the next 12
months in line with our
Vision for a zero-carbon
future.“

To further help Jersey on its journey to net-zero, Jersey Energy
is proud to be the first business in Jersey to be accredited for
undertaking commercial Energy Performance Certificates and
looks forward to leading the scheme over the coming years.
We have also invested in new monitoring equipment to aid
clients in understanding their energy usage as well as dynamic
simulation software to undertake detailed analysis on the
energy performance of a building even before it is constructed.

JERSEY ELECTRICITY Annual Report and Accounts 2023

STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

Jendev

Property

Our property portfolio includes a B&Q store and medical centre
situated on our Powerhouse retail and administration office
site at Queen's Road comprising several tenants, as well as 29
private houses and flats, rented on the open market.

The £1.1m profit, excluding the revaluation impact, was down
£0.3m on the prior year due to one of the commercial spaces
being vacated in March 2023. We are targeting to have this
space occupied by April 2024.

Jendev provides comprehensive digital Enterprise Resource
Planning (ERP) solutions across all business domains of JE,
serving both internal and external clients. Offerings encompass
a dynamic blend of standardised and tailor-made systems,
with a core specialisation in Microsoft Dynamics business
applications. The team’s extensive expertise, however, enables
it to successfully execute projects spanning a wide spectrum
of technologies, offering services that encompass business
analysis, consulting, design, development, training, and project
management. They have been instrumental in the seamless
integration, delivery, and ongoing maintenance of modern
cloud-based solutions.

Jendev's team continues to expand its digital proficiency, with a
keen eye on strategic and relevant technologies. This proactive
approach ensures it is well-positioned to deliver the latest
innovations within the utilities industry, further solidifying its
commitment to technological excellence.

JERSEY ELECTRICITY Annual Report and Accounts 2023

STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

Technology Development

“In the ever-evolving energy industry, technology and
digitalisation have been instrumental in reshaping
our approach to serving stakeholders and improving
operational efficiencies. In the coming year, we will
delve deeper into the potential of AI capabilities to aid
us in dynamic demand forecasting. Additionally, we will
actively harness our digital platforms, recognising their
pivotal role in advancing our journey to achieving a
net-zero Jersey“
Werner Borman, Director of Technology

JERSEY ELECTRICITY Annual Report and Accounts 2023

STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

Jersey Electricity remains steadfast in
our commitment to invest in cutting-
edge technology to advance customer
energy efficiency, engagement, and
operational effectiveness.
Leveraging Customer Platforms and Resources

Throughout 2023, we dedicated ourselves to extracting
additional value from our already industry-leading platforms by
seamlessly integrating and optimising our tools. Our customer
care team adeptly utilised the flexibility and scalability of
our cloud-based customer relationship platform, seamlessly
integrated with a cloud telephony platform, resulting in
enhanced call handling and improved customer identification.
Moreover, our front line staff embraced a mobile workforce
management platform integrated with our asset management
solution, further contributing to operational efficiency.

My JE: Empowering Customers

Helping our customers save energy is a priority and our
flagship energy-saving mobile application, My JE, launched
in 2021. This year, we introduced Pay-As-You-Go capabilities,
enhanced with improved debt management information.

Harnessing The Power of Data

The integration of our data lake with our Customer Relationship
Management (CRM) platform has enabled us to gain real-time
customer insights, enhancing customer engagement and
energy usage management. Utilising Smart Meter data, linked
to our network assets, our data lake has been instrumental
in providing insights into network utilisation. This, in turn, will
support our Operations teams in ensuring our infrastructure
investment is optimised, enabling us to transition to a net-zero
Jersey at minimised cost.

CORPORATE
AND CLIENT
SYSTEM UPTIME

99.88%

RECORDED IN 2023

REDUCED CO2
FOOTPRINT

93%

DURING 2023

My JE App

Corporate Technology: Ensuring Uptime and
Efficiency

Our corporate technology infrastructure maintained an
impressive uptime rate of over 99.88%, primarily achieved
through our strategic shift to cloud services and enhanced
technology governance. Furthermore, JE has, through its
corporate technology physical environment restructuring,
reduced its CO2 footprint by 93%. This is a year-on-year
saving.

Cybersecurity: A Paramount Concern

In the face of an ever-evolving cybersecurity landscape,
JE has consistently invested in advanced cybersecurity toolsets
to combat new threats. These investments have included
cloud-based vulnerability and threat assessment tools to
ensure the highest level of protection for our digital assets.

As we look forward to 2024, our commitment to innovation
and excellence remains unwavering. We are dedicated to
harnessing the full potential of technology to provide our
customers with the best possible experience and to drive
operational efficiencies.

We will be:

• Rolling out our business customer focused energy

insight platform.

• Focusing on further enhancements of our corporate
platforms that include a modern cloud-based human
resource platform, and core enterprise management
system.

• Exploring next generation operational and information

technology platforms.

JERSEY ELECTRICITY Annual Report and Accounts 2023

STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

Our Stakeholders - Enhancing
Our Customer Experience

Putting our customer at the heart of
the energy system, we have continued
our focus on enhancing customer
experience, investing in our people,
systems and communications.
Achieving our highest ever rating of
80.3 for customer satisfaction, we are
proud to continue to serve the Island.
Our strategy focuses on providing integrated services ‘beyond
the meter’, gaining insights into customer needs and helping
them to manage and save energy.

This year we have invested in training, particularly in
complaint handling, improved customer communications
through innovative new technological channels and employee
engagement in our customer experience vision. We strive to
get it right first time, every time.

We have seen our highest ever rating of 80.3 in the UK
Customer Satisfaction Index (UKCSI) that benchmarks us
against larger UK utilities. This score is up from 77.2 last year
and above the 2023 average of 71.7 of the 35 utilities taking
part. This year’s score would place Jersey Electricity fourth
among the 35 UK utilities in the Index and third out of 20
power utilities.

The table below shows our year-on-year comparison by
category of our UKSCI score.

Having reviewed our complaint handling processes, increased
complaint handling training across key areas of the business
and introduced specialists to manage Customer Care more
effectively, our customers felt we had improved in all aspects
of complaint handling category of our UKSCI score.

“It is pleasing to see our
efforts to enhance customer
experience be rewarded with
our highest ever customer
satisfaction score of 80.3.“
Chris Ambler, Chief Executive

EXPERIENCE

78.7

73.2

81.9%

EMOTIONAL CONNECTION

76.8

69.1

77.7%

77.8

70.8

78.0%

CUSTOMER ETHOS

ETHICS

75.8

69.0

78.0%

UKCSI all sector average

Utilities

Jersey Electricity Plc Business Benchmarking

JERSEY ELECTRICITY Annual Report and Accounts 2023

STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

JERSEY ELECTRICITY Annual Report and Accounts 2023

STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

Our Stakeholders - Enhancing Our Customer Experience

Customer Insight

75%

Three quarters of people have
consistently said that their
primary motivation for saving
energy was to save money.

% who support the use or expansion of…

Solar panels

Tidal power plant

Off-shore wind turbines

On-shore wind turbines

86%

84%

81%

57%

50%

Nearly half said
that they had
downloaded
the My JE app.

45%

of these used
the app at
least once
a week.

75%

Over three
quarters of
people use the
app to check
their electricity
consumption.

JERSEY ELECTRICITY Annual Report and Accounts 2023

STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

60%Over 60% of people said

that the upfront cost was the
main barrier to making their
home more energy efficient.

19%to consider buying

an electric/hybrid
vehicle within
12 months.

Consumer concerns
about energy use:

49%were concerned about

the financial cost of
their energy use

34%were concerned

about Jersey’s
dependence on
others

26%

of people were
concerned about
the environmental
impact of their
energy use

% who trust Jersey Electricity “a lot”
or “completely” when it comes to…

ensuring an uninterrupted supply of electricity

supporting and caring for its employees

developing high performing employees

doing the best for the environment

70%

54%

48%

37%

ensuring electricity is affordable for customers

29%

20%

30%

43%

63%

of people were satisfied or very
satisfied with Jersey Electricity.

Very satisfied

Satisfied

Neutral

Dissatisfied

Very dissatisfied

JERSEY ELECTRICITY Annual Report and Accounts 2023

STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

Our Stakeholders - Our People

“ Our success as a business
are the people we employ.
We must attract, engage,
support, and retain the
best people we can.
We are focused on building
an even stronger, more
diverse business where
people feel valued and
supported. Each year we
make progress and this
year has been no exception.“
Andrew Welsby, HR Director

Diversity, Inclusion and Equality

This year we have sought to build on last year’s success of
achieving ‘Established’ status in the maturity audit conduction
by our D&I partners Inclusive Employers for which we had to
evidence that:

• We understand the business case and use this to inform

our strategic approach.

• We seek best practice and use this to improve our D&I

capability.

• Ensure D&I is a leadership responsibility.

Our target is to achieve ‘Integrated’ status as ‘inclusive leaders
and role models’ workplace D&I in 2024. Our immediate goals
are therefore to continue to improve the level of diversity in the
Company, as well as progressing development of a fully diverse
and inclusive culture.

We now have 19 nationalities represented across the business,
up from 14 last year, and 42% of applicants for vacancies have
declared ‘non-white ethnicity’, up from 25% in 2020.

The gender balance in the Company continues to improve,
though recruiting females for apprentice engineering roles
still proves challenging. Of our overall workforce, 23% is now
female versus 77% male, however we are seeing more women
in senior roles with 25% of our Senior Leadership Team female,
twice that of three years ago. In addition, 50% of our Board is
now female.

Disappointingly, we were unable to attract any female
apprentices among this year’s intake of seven. We are involved
in several initiatives, such as Primary Engineer, to promote
careers in STEM professions among young people.

Our D&I Working Group, comprised of people with a protected
characteristic, has met four times this year to help promote
our inclusive culture internally and embed it across the entire
workforce. We have reviewed over 40 people policies to ensure
inclusive language.

Externally, we were gold sponsor for the second year of
the Channel Islands Pride event further demonstrating our
commitment to D&I to the wider community as well as our
own people.

With a greater than 50% rise in LGBTQ+ candidates applying
we believe our strategy is working.

LGBTQ+
CANDIDATES

+50%

FROM 2022

JERSEY ELECTRICITY Annual Report and Accounts 2023

STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

Workforce development

Ensuring we have the right talent and capabilities in the right
place at the right time is vital for future success and requires
much forward planning. We welcomed seven new apprentices
in construction roles in our Energy business this year, and
recruited two additional bursary students, bringing the total
to five, including our first ‘digital’ bursary student who will be
completing work placements in our technology department.

Evaluating and developing our management capabilities has
been a focus to ensure professional development and aid
succession planning. We worked with Norman Broadbent to
assess Senior Leadership Team development requirements and
set two-year action plans to build leadership and management
capability at senior level through coaching, mentoring and
professional qualifications.

During the year, members of our Leadership and Senior
Leadership Teams completed Level 3 or Level 5 Chartered
Management Institute (CMI) Certificates in Management.
We intend to roll-out of these qualifications to employees
seeking professional qualification status.

Engagement

Our Culture and Engagement Forum, created in 2020 and
made up of employees from across the business, met four
times this year, with rotating Board member participation,
to discuss how we run the business, our strategies, and
opportunities to improve how we work.

Our annual Employee Engagement Survey produced a score
of 7.9, slightly up on last year’s 7.8 which puts us towards the
upper end of the median segment in Energy and Utilities
sector. Our engagement Net Promoter Score was 39.

ANNUAL EMPLOYEE
ENGAGEMENT SCORE

7.9

UP FROM 7.8 IN 2022

AVOIDANCE

Diversity and
inclusion is not
even on the radar

COMPLIANT

I/we pay
"lip service"
to Diversity
and Inclusion

Source: Inclusive Employers

PROGRAMMATIC

D&I fits around
other business
priorities

ESTABLISHED

I/we promote
Diversity and
Inclusion and the
business case

374TOTAL EMPLOYEES (FTEs)

97WOMEN EMPLOYED
19NATIONALITIES

REPRESENTED

19APPRENTICES
1WOMAN EMPLOYED

IN EXECUTIVE
LEADERSHIP TEAM

5WOMEN EMPLOYED IN

SENIOR LEADERSHIP TEAM

41AVERAGE EMPLOYEE AGE

11AVERAGE YEARS' SERVICE

INTEGRATED

I/we are inclusive
leaders and role
models

INSTITUTIONALISED

I/we are fully
accountable for
Diversity and
Inclusion

JERSEY ELECTRICITY Annual Report and Accounts 2023

STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

Our Community,
Our Environment
and Our Island

Enhancing stakeholder involvement
continues to be a priority for the Board.
It is essential in helping us adapt to a
rapidly changing business landscape.
Grasping the depth of stakeholder
influence, power, and legitimacy, and
ensuring we react accordingly, is vital
for our business and emphasises the
central role of our customers to our
operations. Productive interactions
with stakeholders help us to
understand and address their needs
more effectively, fostering mutual
value for both Jersey Electricity and the
broader community.

Our stakeholders encompass individuals and organisations
that have a vested interest in our Purpose, Vision, operations
and actions, or those who might be impacted by them. As the
sole provider of low-carbon electricity in Jersey, our stakeholder
spectrum is wide and multifaceted. We identify our stakeholders
to include our customers, suppliers, partners, NGOs, government
entities, parishes, regulatory agencies, lenders and investors,
as well as, of course, our employees.

Outcomes

During 2023 we have conducted over 300 stakeholder
engagements, helping those affected by our business to better
understand Jersey Electricity and our Vision.

The cost-of-living crisis has emerged as a significant challenge,
impacting many across our community. This economic strain
has highlighted the importance of transparent, proactive
communication and collaboration with our stakeholders.
We recognise the increased responsibility we hold in these
challenging times.

As well as affordability, our stakeholders have all expressed
concerns related to reliability and sustainability. Board members
and senior managers regularly engage with government
ministers and senior officials on topics, including: the Island’s
current and future energy mix, the importance and necessary
investment needed to ensure supply security, and our role in
helping Jersey to achieve net-zero by 2050.

We evaluate major stakeholder interactions weekly and modify
our communication strategies, especially in PR and social media,
based on these evaluations. This ensures a cohesive connection
between stakeholder initiatives and our marketing messages,
allowing us to actively influence perceptions and adapt to
emerging insights.

As low-carbon electricity becomes the increasingly dominant
energy source in the Island to achieve net-zero, demonstrating
value to all stakeholders will become ever more important.

“Our customers, stakeholders and communities
are extremely important to us. They are at the
heart of everything we do, and it is crucial for
us to maintain an open dialogue and continue
to measure what is important to them.“

JERSEY ELECTRICITY Annual Report and Accounts 2023

STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

What are we doing?

Community

• Stakeholder meetings
• Social media engagement

• Workshops
• Corporate website

Partners

Customers

• Media engagement
• Sponsorship
• Contact centre
• Newsletters
• Events

Our People

• Internal comms

& townhalls

• Thought pieces

• My JE App
• Customer forums
• Focus groups
• Marketing platforms
• Surveys
• Advisory committees

Government

Energy
Industry

• Briefings

• Fact sheets

• Research

JERSEY ELECTRICITY Annual Report and Accounts 2023

STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

Our Stakeholders - Our Community, Our Environment and Our Island

Community
We support a wide range of good causes, charities
and local awards through corporate sponsorship
and the CSR (Corporate Social Responsibility)
activities of our people with emphasis on the
environment, health and education.

Environment
Green Grid Project

We partnered with Jersey Water and JT Group in the National
Trust for Jersey’s Green Grid Project to create wildlife
corridors across the Island. A total of 122 employees helped
to plant 1,788 hedging whips over 1,341 metres along 21
field boundaries in four days. In spring and Summer another
77 employees returned to maintain the hedges by clearing
competing vegetation around all the whips.

Bouley Bay, Parish Earth Partnership

Trinity became the second parish after St Clement to
participate in JE’s Parish Earth Partnership for which we’ve
offered all 12 parishes £5,000 to densely plant a small plot
with native trees to increase biodiversity and aid carbon
sequestration long-term. We partnered with the National
Trust for Jersey and this year helped plant 120 trees at
Bouley Bay, Trinity on land gifted to the Trust.

Durrell Wildlife Conservation Trust

We have a long association with Durrell Wildlife Conservation
Trust. This year we joined its ‘Tortoise Takeover’ by sponsoring
one of 50 giant sculptured tortoises used in an Island-wide
community art trial before being sold at an auction that raised
a total of £720,500 for the Trust.

Recognising Environmental Excellence

Now in our eighth year of sponsoring the Pride of Jersey
Environmentalists Award run by the Jersey Evening Post, this
year’s honours went to Alastair Christie and the Asian Hornet
Facebook group: For their efforts in containing and controlling
the Island’s Asian hornet population. Normans won the JE
Sustainability Award at this year’s Jersey Construction Council
Awards. In addition, this year we sponsored the Public Sector
category at the Digital Jersey Tech Awards which was won by
Jersey Coastguards for their Trace app.

JERSEY ELECTRICITY Annual Report and Accounts 2023

STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

Health
Mind Jersey

We promote the importance of mental wellbeing and were
therefore delighted that employees supported the challenge
to ‘Cycle to Finland’ for World Day for Safety and Health, and to
raise money for Mind Jersey. Around 80 employees raised £950
by cycling the distance to Finland in a relay on exercise bikes
situated in our Powerhouse store. The Company matched the
funds bringing the total raised to just under £2,000.

The Salvation Army

We raised £150 from donations at our 2022 electric blanket
testing last October. The Company matched the donations
enabling us to provide the Salvation Army with £300 in Pay As
You Go electricity meter top-up vouchers for needy Islanders.

Citizens Advice Bureau

We are long supporters of the Citizens Advice Bureau
which does much to help vulnerable Islanders. This year we
provided a further £4,300 funding to enable the installation
of a low-carbon electric heating system in the charity’s newly
refurbished headquarters.

Sanctuary Trust

We have supported the Sanctuary Trust Walk Into Light to
raise money for homeless men in the community since 2018
and we were delighted to back this innovative community
event again in 2023 after a three-year break due to the
pandemic.

Education
National Trust Education Programme

We have renewed our sponsorship of the National Trust
for Jersey’s Education Programme, funding the Trust
full-time Education Officer and the Trust’s activities that
encourage children to ‘reconnect with nature’, learn about
the environment and climate change while complementing
schools’ science curricula.

Primary Engineer

As part of our drive to encourage children into engineering
careers we are sponsors and an Industry Partner of Primary
Engineer, a UK initiative led by Skills Jersey promoting careers
related to STEM (science, technology, engineering and maths)
through a competition ‘If You Were An Engineer, What Would
You Do? ’for which we provide mentoring engineers and judges
and this year hosted grading days at our Powerhouse HQ.

Child Accident Prevention CAP) Safety In Action Week

This year 10 JE employees volunteered to present workshops
on home and electrical safety to around 1,000 school children
in a week-long series at Highlands College during the summer.

Grands Vaux Summer School

We helped Grand Vaux School set up a summer school,
providing activities such as zip-lining, surfing lessons,
Jersey Zoo visits and arts and crafts for children who would
otherwise be unable to experience such pursuits.

Island Games

The Island Games is such a high-profile community event for
the Channel Islands we were pleased to be able to support the
Jersey Table Tennis and Air Rifle Club teams at this year’s event
in Guernsey.

52
52

JERSEY ELECTRICITY Annual Report and Accounts 2023

STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

Financial Review

Group Financial Results

Revenue

Profit Before Tax

Earnings Per Share

Dividend Per Share

Proposed Final Dividend Per Share

Net Cash*

In Year Return on Assets

Return on Assets - Five year rolling average

*Net Cash is calculated as cash of £47.4m less borrowings of £30.0m; (2022: £47.4m less £30.0m)

2023

2022

£125.1m

£117.4m

£14.9m

£10.6m

36.81p

18.80p

11.40p

27.17p

17.80p

10.80p

£17.4m

7.2%

6.2%

4.2%

6.2%

2022/23 has seen a return to a
less volatile operating environment
following the pandemic. Our hedging
strategy for the procurement of power
has protected us against a volatile
wholesale energy market which has
seen prices reach over 10 times
historical levels in the same period.
Escalating inflation has put pressure on the cost base as the
business continues to maintain performance and build towards
a decarbonised future. Our balance sheet continues to be healthy
underpinned by high quality assets.

Financial Performance
Group Revenue for the year to 30 September 2023 increased year
on year by £7.7m (6.5%) due to tariff price increases in the Energy
Business. Revenue across the wider group remained in line with
the previous financial year.

Group Profit Before Tax for the year to 30 September 2023
was £14.9m compared to £10.6m in 2022. The profit increase is
attributed to £1.8m from the energy business and £1.6m income
from interest earnings. In the year the energy business received
a rebate of £3.6m relating to prior year wholesale energy costs
and following a full review, our property portfolio was devalued
by £1.2m.

Underlying profit before tax calculated as Group Profit before tax
after removing the impacts of the rebate and property valuation
was £12.5m in 2023 against £9.6m in 2022.

Energy Business: Operating Profit, excluding the rebate of past
energy costs, at £9.3m, was £1.8m above the £7.5m achieved in
2022. This is due a £7.4m increase in revenues, following a tariff
price increase on 1 January 2023 which has been offset by a £5.6m
increase in wholesale energy costs and operating costs.

53
53

JERSEY ELECTRICITY Annual Report and Accounts 2023

STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

Operating costs have increased due to increased inflation and
increased investment in our systems and people, as we head
into a period of increased capital investment and enhancing
our capability as we continue to achieve our net-zero ambition
and supporting the GoJ in meeting its Carbon Neutral Roadmap
objectives and a net-zero Jersey.

The goal is to provide our customers with a market-based price
but with a degree of certainty in a volatile energy marketplace.
Pricing decisions are made by a Pricing Management Committee,
consisting of employees of Jersey Electricity, Guernsey Electricity
and an independent energy market adviser and follows
guidelines approved by the Jersey Electricity Board.

Our 2023 in year Return on Assets (see other information,
Alternative Performance Measures, p127) is 7.2% compared to
4.2% in 2022. This increase is effectively a ‘truing up’ of prior
years under recovery and includes the rebate on prior year
energy costs. We target Return on Assets to be within a 6% to 7%
range over a 5-year rolling average basis. Our 2023 5-year rolling
average Return on Assets is 6.2%.

Property: The £1.1m profit in our property division, is £0.3m
lower than in 2022 due to one of the commercial spaces being
vacated in March 2023. A new tenant is expected for the space
during early 2024.

Powerhouse.je: Our Powerhouse retail business saw profits fall
22% from £1.2m to £0.9m, despite a marginal fall in revenues of
1%, due to increased overheads in staff and storage costs.

JEBS: Profits fell by £0.1m across our building services business
due to an under recovery in revenue from a lower than expected
number of fuel switches. The reduction was due to a slowing
in the pace of switching for a short time as the government
incentive scheme was being launched.

Other Business Units (Jersey Energy, Jendev, Jersey Deep Freeze
and fibre optic lease rentals) produced combined profits of £0.6m
being £0.1m higher than last year.

Net Interest income was £0.3m in 2023 compared to a net
interest cost of £1.3m in 2022 due to a higher level of interest
earned on deposits from rising interest rates. Taxation at £3.4m
was higher than the previous year, due to increased taxable
profits.

Group basic and diluted earnings per share, at 36.81p,
compared to 27.17p in 2022, rose due to increased profitability.
Dividends paid in the year, net of tax, rose by 6%, from 17.80p in
2022 to 18.80p in 2023. The proposed final dividend for this year
is 11.40p, a 6% rise on the previous year. Dividend cover,
at 2 times has increased from 1.5 times in 2022.

Net cash flows from operating activities at £17.6m was £3.6m
lower than in 2022. Cash used in investing activities, at £11.4m
was 3% higher than the prior financial year. Dividends paid
were £5.8m compared to £5.5m in 2022. The resultant position
was that net cash at the year-end was £17.4m, being £30.0m of
borrowings offset by £47.4m of cash and cash equivalents, which
was the same as last year.

Impact from Wholesale Market Volatility
Jersey Electricity currently imports c95% of Jersey’s electricity
requirements from Europe. It jointly purchases power with
Guernsey Electricity from EDF in France under a supply contract
that ends in December 2027. The supply contract allows power
prices to be fixed in Euros. It combines a fixed price component
with the ability to price fix future purchases over a rolling three-
year period based on a market related mechanism linked to the
EEX European Futures Exchange.

Over the last two years we have seen unprecedented volatility in
energy markets. This resulted in many UK suppliers going out of
business and in the UK, only Government intervention averted a
proposed 80% year-on-year increase in energy prices. Prices still
materially rose for consumers and currently, even with a subsidy
regime in the UK, the average domestic customer in Jersey is
paying less than half the price they would do in the UK for their
electricity.

We are not immune to these conditions and our hedging policies
have sheltered Jersey customers from the most extreme period
of material rises that otherwise would have been experienced
during this period. The 2024 and 2025 energy market remains
significantly above historic norms and to enable the transition
to the emerging market, tariff prices were increased by 5% on 1
January 2023 and a further increase of 12% from 1 January 2024
was announced in June 2023. Although any such rises are difficult,
they are much lower than increases in other jurisdictions against
which we will continue to benchmark favourably in terms of
absolute price. With prices in 2024 expecting to more than 60%
higher than those in the UK.

As we look forward to 2025 – 2027, approximately one third of
our energy is already hedged at fixed prices and our focus is on
ensuring that we transition our customers through the energy
crisis whilst we maintain relative bill affordability.

Treasury matters and Hedging Policies
Operating within policies approved by the Board and overseen
by the Chief Financial Officer, the treasury function manages
liquidity, funding, investment, and risk from volatility in foreign
exchange and counterparty credit risk.

As a substantial proportion of the cost base relates to the
importation of power from Europe, which is contractually
denominated in Euro, the Company enters into forward currency
contracts to reduce exposure and as a tool to aid tariff planning.
The average Euro/Sterling rate underpinning our electricity
purchases during the financial year, because of the hedging
programme, was 1.13 €/£. The average applicable spot rate
during this financial year was 1.15€/£ against 1.18€/£ during
the 2022 financial year.

Interest rate exposure is an area of potential risk but is managed
by the £30m of private placement monies received in July 2014
having a fixed coupon and represents all our borrowings at
present.

The Group may be exposed to credit-related loss in the event of
non-performance by counterparties in respect of cash and cash
equivalents and derivative financial instruments. However, such
potential non-performance is monitored despite the high credit
ratings (investment grade and above) of the established financial
institutions with which we transact. We also employ a policy of
diversification through use of several counterparties.

JERSEY ELECTRICITY Annual Report and Accounts 2023

STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

Financial Review

Defined Benefit Pension Scheme
Arrangements
As of 30 September 2023, the scheme surplus, under IAS 19
“Employee Benefits”, decreased slightly to £20.4m, net of
deferred tax, compared with a surplus of £21.1m at 30
September 2022.

The discount rate assumption, which heavily Influences the
calculation of liabilities, rose from 5.2% in 2022 to 5.4% in 2023
reflecting sentiments in prevailing financial markets. This resulted
in liabilities decreasing 0.6% from £86.1m to £85.6m since the last
year-end with assets falling by 1.3% from £112.5m to £111.1m in
the same period.

Our defined benefits pension scheme is an area of risk that
continues to require careful monitoring as it is driven largely
by movements in financial markets and materially impacted
by relatively small movements in the underlying actuarial
assumptions. Note 16 to the financial statements provides
sensitivity analysis to movements in the assumptions in the
discount rate, salary increases, inflation and mortality.

The most recent triennial actuarial valuation, as of 31 December
2021 showed a surplus of £17.1m. Unlike most UK schemes, the
Jersey Electricity Pension Scheme is not funded to pay mandatory
annual rises on retirement. The final salary scheme was closed
to new members in 2013, with new employees, since that time,
being offered defined contribution pension arrangements. The
next triennial actuarial valuation of the defined benefit scheme
will have an effective date of 31 December 2024.

Returns to shareholders
62% of the ordinary share capital of the Company is owned by
the Government of Jersey with the remaining 38% held by around
600 shareholders via a full listing on the London Stock Exchange.
Of the holders of listed shares, Huntress (CI) Nominees Limited
owns 5.4m (46%) of our ‘A’ Ordinary shares representing 17% of
our overall Ordinary shares and around 5% of voting rights. This
nominee company is held within the broker firm Ravenscroft
which has placed our stock with several private clients, and a
fund, residing largely in the Channel Islands. During the year
the ordinary dividend paid increased by 6% from 17.80p net of
tax to 18.80p. The proposed final dividend for 2023, at 11.40p,
is a 6% increase on last year and consistent with the underlying
dividend pattern in recent years and with our stated policy to
aim to deliver sustained real growth in the medium-term. We are
currently seeing a surge in the local RPI in Jersey, which was at a
rate of 10.9% at 30 June and 10.1% at 30 September 2023 but this
is predicted to fall over the coming and future years. The chart
opposite shows the profile of the ordinary dividend payments
over the last 5 years that have risen from 15.30p to 18.80p.

The share price at 30 September 2023 was £4.50 against £5.20
at the 2022 year end. This gives an implied market capitalisation
of £138m at 30 September 2023 compared with a balance sheet
net assets position of around £242m. However, the illiquidity of
our shares, due mainly to having one large majority shareholder,
combined with an overall small number in circulation, constrains
the ability of the management team to influence the share price.
We use Edison (an investment research firm) to produce regular
research on our performance to aid the understanding of our
value proposition to a wider body of potential investors in the
quest to improve our longer-term liquidity.

Viability Statement
In accordance with provision 31 of the 2018 revision of the Code,
the Directors have assessed the prospect of the Company over
a longer period than the minimum 12 months required by the
‘Going Concern’ provision. The Board have reviewed a five year
forecast containing a three year strategic business plan and a two
year forecast to 30th of September 2028. This business plan is
refreshed each year on a rolling basis.

This document considers our forecast investment, hedging
policy for electricity procurement and linked foreign exchange
requirements, debt levels and other anticipated costs, and the
resultant impact on likely customer tariff evolution.

Stress testing of the cost base of our Energy business was
performed to establish the impact of material movements in both
foreign exchange and wholesale electricity prices. A reduction
in the volume of unit sales of electricity through, for example,
energy efficiency is being mitigated by switching existing
customers, who use gas/oil as their primary heating source, to
all-electric solutions. A dedicated team work on initiatives in this
area. However, as we employ a ‘user pays’ model the Board has
comfort on the longer-term consequences of a reduction in the
volume of electricity sales, a permanent weakening in Sterling,
or a material rise in European wholesale power prices.

Based on the results of this analysis, and on the basis that the
fundamental regulatory and statutory framework of the market
in which the Company operates does not substantially change,
the Directors have a reasonable expectation that the Company
will be able to continue to operate, and meet its liabilities as they
fall due, over the five-year period of their assessment through
to 2028.

In making this statement the Directors have considered the
resilience of the Company considering its current position, its
principal risks, and the control measures in place to mitigate each
of them. In particular, the Directors recognise the significance
of the strong Jersey Electricity Plc balance sheet, and committed
lending facilities, that will be available in most circumstances.

JERSEY ELECTRICITY Annual Report and Accounts 2023

STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

Return on Assets

2019

2020

2021

2022

2023

In Year 5 Yr Rolling Average

Net Dividend Paid (pence)

2019

2020

2021

2022

2023

JERSEY ELECTRICITY Annual Report and Accounts 2023

STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

Group Risk
Management

Understanding and managing our risks
is front of mind in everything we do.
Our risk management framework helps
us meet our strategic and operational
objectives and is designed to manage
both risk and opportunities.
Overall, the framework enables our people to make informed
business decisions in the best interest of our customers,
the Group and our shareholders whilst encouraging us to
embrace the concept of taking measured risks, which drive
innovation and growth.

Governance – Audit and Risk Committee responsibility

The Board has delegated the Audit and Risk Committee (ARC)
with the responsibility of assessing the effectiveness of the
risk management framework. The ARC fulfils their role by:

• Establishing procedures to manage risk and oversee the

internal control framework.

• Reviewing and challenging the principal risks, emerging

risks and the aggregate risk assessments from the ‘bottom-
up’ risk register.

• Approving the annual internal audit plan and reviewing
internal audit reports on the effectiveness of internal
controls, as a result of independent assurance work
undertaken throughout the year.

Governance - Board responsibility

• Undertaking risk deep dives to review high priority risks,

ad-hoc topics and emerging matters.

• Monitoring management’s implementation of audit
recommendations and actions arising from risk
assessments.

Three Lines Model

Jersey Electricity has adopted the ‘Three lines model’ to
embed risk monitoring and manage internal controls
systematically and organisationally. The model enhances the
understanding of risk management and control by clarifying
roles and duties. The model distinguishes among the three
groups (or lines) involved in the effective risk management:

• Functions that own and manage risks.

• Functions that oversee risk management and the risk

management framework.

• Functions that provide independent assurance.

The Board retains overall accountability and responsibility
for the Group’s risk management and internal control
systems. The Board fulfils their role by:

• Defining the risk appetite – the Board periodically

reviews the nature and amount of risk the Group is
willing to accept when doing business and achieving
strategic objectives

• Conducting robust risk assessments – the Board

undertakes assessments of the principal and emerging
risks to understand the potential that these risks may
impact the ability to achieve strategic objectives

• Reviewing mitigation plans – the Board will review the
principal risk assessments and agree how these risks
should be managed or mitigated to reduce the likelihood
of their incidence or the magnitude of their impact

• Identifying emerging risks – the Board reviews the
procedures in place to identify emerging risks and
challenge how these risks are being managed or mitigated

• Approving the principal risks and uncertainties disclosure -
at year end, the Board reviews the descriptions of principal
risk and uncertainties, explanations of how these risks
are being managed or mitigated, and other relevant
information describing the Group’s risk management
and internal control systems.

The Board recognises that the system of risk management
is designed to manage, rather than eliminate, the Group’s
exposure to business risks, and can only provide reasonable
assurance and not absolute assurance against material
misstatement or loss.

JERSEY ELECTRICITY Annual Report and Accounts 2023

STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

JE Board
Approves the Risk Management framework, Risk Appetite and Risk principles.

Audit and Risk Committee (ARC)
Governs and provides assurance that risks have been identified,
evaluated, addressed (mitigated/treated) and monitored.

Executive Leadership Team (ELT)
• Defines and recommends the risk appetite framework
and principles to the Board.
• Are exemplars of Risk Management.
• Identifies principal and emerging risks.
• Responds and monitors company risks.

ELT Sponsor
• Established and owns
Risk Management policy
and processes.
• Provides updates to the ELT,
ARC and Board.

First Line

• Senior Leadership Team /
Operational Managers define
processes to identify, measure
and control our principal risks.
• Identify and develop
mitigation action plans.
• Update Risk assessments /
registers - Internal controls
embedded within processes
and operating systems.

Second Line

The Risk Management and
Compliance functions ensure
the first line of defence is
properly designed in place,
and operating as intended
HS&E Team, Information
Security, Data Protection.

Third Line
Internal Audit function
provides the ARC and ELT
with independent and
objective assurance regarding
effectiveness of the controls
and risk management
processes.

External Audit

- External third
party assurance
on the financial
statements.
• Provides the
highest form
of impartial
assurance.

Three lines model

KEY

The arrows illustrate the reporting lines, direction and
collaboration for each core component of this framework.

Accountability & reporting for evaluations

Delegation, direction & oversight

Collaboration & communication

External assurance reporting

Group Risk

Management

JERSEY ELECTRICITY Annual Report and Accounts 2023

STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

Group Risk Management

Risk Management Framework
Our risk management programme clearly defines roles and responsibilities and sets out a consistent end-to-end
process for identifying and managing risks, as illustrated in the diagram below

Principal Risk Register
The principal risk register is a summary of the top risks, emerging risks and uncertainties facing the
Group Executive Leadership Team (‘ELT’). It is collated into a group view after a process of bottom up
and top-down risk assessments, with the risks assigned to a member of the Executive leadership team.

RISK LANDSCAPE

RISK MANAGEMENT FRAMEWORK

Principal and Group risks
– These risks are known to the
business and must be managed
to ensure we achieve
operational and strategic
objectives.
Emerging risks – These risks
are emerging threats that may
potentially impact us in the
future. Due to their nature, we
are unable to understand the
likely scale, impact or velocity
of the risk. We monitor these
threats until better understood.

• Risk ownership – each risk will have a

named owner.

• Risk causes – a list of reasons why the

risk could occur.

• Likelihood and impact – the possibility
and estimated harm caused by the risk.
• Inherent risk – assessment of the risk

before mitigating controls.

• Mitigating controls – implemented by
management to reduce/eliminate the
risk.

• Residual risk – assessment of the risk
after mitigating controls are applied.
• Risk Appetite – set by the Board, this is
the level of risk the Group is prepared to
accept.

• Action plans – Workstreams, projects

and tasks in place to strengthen controls.

MONITORING AND
OVERSIGHT

Board – determines the Group’s
approach to risk and procedures
put in place to mitigate
exposure to risk.
Audit and Risk Committee
– has delegated responsibility
from the Board to assess
the effectiveness of risk
management and internal
controls.
ELT risk owners – responsible
for managing the risk registers,
monitoring internal controls and
implementing the actions plans.
Internal audit – independently
reviews the effectiveness of
internal controls and provides
assurance to the Audit and Risk
Committee.

Bottom-up registers
Each business unit is responsible for identifying risks arising from day-to-day operations.
Management must design and implement adequate control measures and undertake regular risk assessments.

The core risk assessments are undertaken by each business
unit, with the risk owners responsible for identifying and
assessing risks which could affect day to day business unit
operations.

The bottom-up risks are consolidated into a Group risk
register, along with emerging risks and opportunities, which
are presented to the Executive Leadership Team (ELT) for their
review. Applying a Group-wide perspective, the ELT evaluates
and determines our top principal and emerging risks. The
proposed principal risks, Group risk register and emerging
risks are submitted to the ARC and the Board for their final
challenge and approval.

During the risk evaluation phase, we assess the risk impact
and define the source or potential causes of the threat.
The assigned executive risk owners are accountable for
confirming adequate controls are in place and that the
necessary treatment plans are implemented to bring
the risk within the risk appetite.

JERSEY ELECTRICITY Annual Report and Accounts 2023

STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

Risk Appetite
The Board has determined the risk appetite and risk tolerance
for the Group’s principal risks. A set of strategic statements
have been developed that reflects the strategic intent and
levels of risk that management deems acceptable, whilst risk
tolerances set the acceptable level of variation and required
action around risk ratings:

• Averse – Prepared to accept only the very lowest level

of risks, with the preference being for low- risk delivery
options, whilst recognising that these will have little or no
potential for reward/return.

• Cautious - Willing to accept some low risks, while

maintaining an overall preference for low risk delivery
options that are unlikely to have a significant impact despite
the probability of these having mostly restricted potential
for reward/ return.

• Moderate - Tending towards exposure to only moderate
levels of risk in order to achieve acceptable, but possible
unambitious outcomes.

• Open - Willing to consider all options and choose one

most likely to result in successful delivery while providing
an acceptable level of benefit. Seek to achieve a balance
between a high likelihood of successful delivery and a high
degree of benefit and value for money.

• Enterprise - Ambitious and willing to be innovative and to
choose options that suspend previous held assumptions
and accept greater uncertainty.

Our principal risks and uncertainties

The principal risk heat map provides an indicative view of the
current risk exposure (likelihood of occurrence and most likely
impact) of each of the principal risks relative to each other.

Nine of the 11 principal risks have remained relatively stable
in the last 12 months with the following principal risks
identified as on the ‘watch list’, resulting in an increase in
exposure and additional mitigating actions from the Board
and Management:

• Market volatility and tariff prices – due to current

economic conditions and uncertainty.

• Adverse political and regulatory measures – due to

increased public and political interest in the energy sector.

Principal Risks Heat Map

Almost
certain

Likely

Possible

d
o
o
h

i
l
e
k
i
L

Unlikely

Rare

Critical residual risk

4: Market volatility & tariff prices

High residual risk

3: Adverse political and
regulatory measures

Medium residual risk

9: Data loss or breach

10: Cyber threats

7: Health, Safety & Environment

1: Energy market share growth

5: Secure supply of energy

8: Climate change and
decarbonisation targets

6: People and culture

11: Pension liabilities

Low residual risk

2: Strategy and disruptive
technology

<>
<>
<>
<>
<>
<>
<>
<>

Risk exposure:
An indication of each principal risk
relative to the prior year reported.

Insignificant

Minor

Moderate

Major

Severe

Impact

Decreased Stable Increased

JERSEY ELECTRICITY Annual Report and Accounts 2023

STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

Group Risk Management

Our principal risks and uncertainties

The following tables set out the Group’s principal risks, and provides a description of the risk, risk owner, risk trend, risk
appetite and mitigating actions. The principal risks are considered by the Board to be the most significant risks that could
materially affect the Group’s financial condition, ongoing performance and future strategy.

The risks listed do not comprise all risks faced by the Group and are not set out in any order of priority. Additional risks not
presently known to management, or currently deemed to be less material, may also have an adverse effect on the business.

Risk Profiles Change Key

< Increasing

< Decreasing

<> Stable

Vision Key

Environment

Lifestyle

Our People

Customers

Technology

Investors

Partnerships

We aim to
enhance
Islanders’
lifestyles and
power the
economy by
providing
innovative,
low-carbon
energy services
and solutions.

We support the
Government of
Jersey’s Carbon
Neutral Roadmap
by growing
electricity’s share
of the energy
market, reducing
carbon emissions,
helping to
conserve
resources and
protect the
environment.

We aim to be
an employer of
choice in Jersey,
where employees
are engaged,
supported and
developed.

We put customers
at the heart of our
business, giving
them choice,
control and value
for money in a
transparent and
trusted way.

We provide fair
returns to our
investors over
the medium to
long term.

We aim to be
the partner of
choice for the
Government of
Jersey and the
Island’s parishes,
supporting all
their energy
needs.

We aim to be
leaders in the
application of
technology,
enhancing
efficiencies,
unlocking new
services and
digitally enabling
our employees
and our
customers.

JERSEY ELECTRICITY Annual Report and Accounts 2023

STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

We categorise our risks into four different areas to provide the appropriate level of governance and oversight to effectively
manage these risks, as summarised below.

Risk Category: Strategic Risks

Energy market share growth

Strategy and disruptive technology

Climate change and decarbonisation targets

Description: Inability to grow anticipated
unit sales and other revenue streams,
resulting in long term loss of market share
and depleting profit margins.

Description: Failure to innovate and
maximise the growth potential of the
business, could negatively impact our
ability to compete in the market and
grow unit sales of electricity.

Description: Climate change (and failure to take
climate action) impacts our business model,
capacity for growth, and could result in public
pressure for governments to introduce new
policies, laws & regulations.

Risk Owner:
Director of Commercial Services
Movement: <> Stable
Risk Appetite: Moderate

Risk Owner:
Chief Operating Officer
Movement: <> Stable
Risk Appetite: Moderate

Risk Owner:
Chief Financial Officer
Movement: <> Stable
Risk Appetite: Cautious

Our Vision:

Key mitigating actions

• The prime defence against falling volumes
is to migrate existing customers who use
gas/oil as their primary heating source to
all-electric solutions.

• Opportunities and challenges related
to growth are a major area of focus
throughout the business, with advances in
technology reviewed and discussed.

• Numerous workstreams in place to
develop low carbon products and
financing options, enabling growth
beyond 2023.

• A dedicated team working on low carbon

/ renewable initiatives - including EV, solar
power and other renewable options.

• Refreshed Vision includes key strategic
workstreams which address innovation
and growth opportunities.

• Macro-economic factors that could
potentially impact the strategy are
tracked and regularly reviewed by ELT.

• Growth opportunities are reviewed in
line with our risk appetite, company
values, business model and culture.

• JE has a well-invested low carbon electricity system

that can facilitate a zero-carbon future.

• The Sustainability Committee, made up of

representatives across all departments, work
together to oversee JE’s sustainability program
for company wide initiatives.

• Integrating the energy transition and climate
concerns into processes, resulting in reviews /
rethinks of our supply chain, purchases and the
way we conduct our business activities.

• Committed to government environmental objectives
by providing renewable energy and charging outlets
for EVs.

• Aligned reporting with the recommendations of the
Taskforce on Climate Related Financial Disclosures
(TCFD) which can be found on page 22.

JERSEY ELECTRICITY Annual Report and Accounts 2023

STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

Group Risk Management

Risk Category: Financial Risks

Adverse political and
regulatory measures

Market volatility and tariff prices

Pension Liabilities

Description: The introduction of adverse
political and regulatory measures could
result in the attendant cost of compliance
and negatively impact public relations.

Description: Adverse movements in market
conditions will negatively impact tariffs, causing
reputational damage and making it difficult to
compete against other fuel providers.

Risk Owner: Chief Financial Officer

Principal Risk Trend: < Increasing

Risk Appetite: Cautious

Risk Appetite: Moderate

Description: Volatility of markets impacting
our Defined Benefit Pension Scheme
position e.g. liabilities increase due to market
conditions or demographic changes and/or
investments underperform.

Risk Owner: Chief Financial Officer
Principal Risk Trend: <> Stable
Risk Appetite: Moderate

Our Vision:

Key mitigating actions

• Strategic objectives in place to ensure

• Power Purchase contract with EDF in place to 31

we balance between being the key service
provider on an Island whilst recognising
our responsibilities to a wide number of
stakeholders.

• Transparent and regular communication
with key stakeholders and policy makers.

• Benchmarking ourselves against

comparable Key Performance Indicators
with other jurisdictions (e.g., Tariffs,
Customer Service, Customer Minutes Lost,
CO2 emissions, Lost Time Accidents).

• Continuous monitoring of political

and legislative developments
(e.g., the Government’s Energy Plan).

December 2027.

• Hedging and Treasury policies are reviewed

annually and approved by
the Board.

• Financial risks and hedging positions are reviewed

regularly, with comprehensive status updates
provided at each Board meeting.

• Daily monitoring of power price futures
undertaken and material movements
reported to management, the ARC and Board.

• The goal, where possible, is to instigate tariff

rises that are similar in scale to Jersey RPI levels.

• The Board monitors the financial position
of the Scheme and the potential impact
that it may be having on the Company.

• The Trustees implemented an LDI strategy
to reduce the exposure to movements in
the value of pension liabilities.

• The Defined Benefit scheme was closed to

new members in 2013.

• A triennial valuation is performed that

formally reports on performance.

JERSEY ELECTRICITY Annual Report and Accounts 2023

STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

Risk Category: Operational Risks

Reliable and secure supply
of energy

Health, safety & environment

People and culture

Description: Unable to maintain operations and
continuity of electricity supply, leading to frequent
disruption to supply, including an island wide
power outage.

Description: A health, safety or
environmental incident, leading to a serious
injury, death, hazardous event or long-term
damage to the eco-system.

Description: Inability to retain and develop
the right people and skills required to
achieve business objectives in a culture and
environment where employees can thrive.

Risk Owner: Chief Operating Officer
Movement: <> Stable
Risk Appetite: Cautious

Risk Owner: Chief Operating Officer
Movement: <> Stable
Risk Appetite: Averse

Risk Owner: Human Resources Director
Movement: <> Stable
Risk Appetite: Moderate

Our Vision:

Key mitigating actions

• Robust processes and procedures in place to

• A proactive safety and environmental

prevent unplanned outages and interruptions
to services.

• Three subsea cables to France provide resiliency

with regards supply importation cables.

• Strong relationship with our suppliers and

engage in ongoing dialogue to understand
any developments that might impact security
of supply.

• On-Island generation capability to limit over-

reliance on any single fuel source
or technology.

• Repair and maintenance programme in place

to optimise the life of all assets.

• Comprehensive business continuity plans which
are periodically testing under various scenario
exercises.

• The completion of our smart metering rollout

has enhanced metering data, enabling improved
analytic insights to better manage load.

culture nurtured throughout the
organisation which is supported by safety
representatives, programmes of site
inspections and regular training.

• Performance measures are explicitly

presented as a separate agenda item at
each Board meeting.

• A Health, Safety and Environment team

sets standards and monitors performance
against those standards.

• Accident, incidents and near misses are
reported and recorded, with analysis
performed on trends and root causes.

• Long-range workforce planning to better
forecast leavers and skill shortage risk.

• Annual succession planning for leadership
and critical roles, including replacement
chart, indicating risk areas.

• Diversity and inclusion strategy to

continually build diversity across all roles
and levels within our business.

• School engagement and apprenticeship

programs in place to encourage the
younger generation to pursue STEM
careers.

• Continuous focus on our values and
culture, which are aligned with our
purpose.

• Code of Conduct, Speak Up policies and

other HR policies communicate expected
behaviours of all our people.

• Increased emphasis on mental health,

wellness programs and improving ways
of working.

JERSEY ELECTRICITY Annual Report and Accounts 2023

STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

Group Risk Management

Risk Category: Technological Risks

Data loss or regulatory breach

Cyber threat and information security

Description: Data loss, release or misuse of personal and
confidential information resulting in a regulatory breach,
highly publicised investigations, fines / penalties and
reputational damage.

Description: A cyber-attack or internal malicious activity
could cause serious disruption to critical systems, causing
major impact to operations and lead to customer, financial
and reputational impacts.

Risk Owner: Company Secretary
Movement: <> Stable
Risk Appetite: Averse

Our Vision:

Key mitigating actions

• Appointment of a data protection officer (DPO).

• Internal privacy governance structure established.

• Documented processes and policies to enable

compliance with laws and regulations.

• Enhanced data protection impact assessments (DPIA)

and continuous monitoring of risk assessments.

• On-going data protection training as

we recognise that data protection breaches are not always
technical, and that awareness is our first point of control.

• Ongoing compliance program, including reviews of data library

and monitoring of retention and destruction schedules.

Risk Owner: Director of Technology
Movement: <> Stable
Risk Appetite: Averse

Our Vision:

Key mitigating actions

• Use of antivirus and malware software, firewalls, email scanning
and internet monitoring to identify and prevent cyber threats.

• Information Security systems that identifies, mitigates
and removes malicious domains and Internet Protocols.

• IT policies in place to manage administrator, privileged

and service accounts.

• Regular monitoring of unusual or suspect activity

on the corporate network.

• Testing of cyber security including system penetration

testing and internal phishing training exercises.

• On-going cyber awareness training across the Group.

• Core applications are only accessible
through a secure portal that require
multi factor authentications.

JERSEY ELECTRICITY Annual Report and Accounts 2023

STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

Emerging Risks

As with all businesses, we face several uncertainties which may potentially impact us in the longer term. Where there is insufficient
information available to understand the likely scale, impact, or velocity of the risk, we have classified these threats as emerging
risks.

We identify new emerging risks, through the evaluation of our business strategy, new technologies, products, and services as
well as government policies, regulation and cyber threats. Once identified, we evaluate the impact and potential effect it could
have on the Group and principal risks.

The table below highlights the latest emerging risk that may, in time, pose a threat to the Group’s business model and strategic
objectives.

Ref

Emerging risk

Risk owner

Risk Description

Action plans

ER1

Competition in
energy market

Director of
Commercial
Services

Government legislation or the
removal of barriers to market entry,
results in new entrants to the Jersey
energy market, resulting in loss of
market share and depleting profits.

• A New Product Development team has been
created within the Group to develop new
ideas for services and propositions, including
Heating as a Service (HaaS), Lighting as a
Service (LaaS), financing, enabling growth.

ER2 Natural

resource crisis

Chief
Operating
Officer

The world is experiencing the
first truly global energy crisis in
history, with the situation especially
perilous in Europe. There are some
concerns over disruption to supply
from Europe (caused by war or
other event). Adverse movements
in market conditions, coupled with
natural resource crisis which may
result in more reliance on nuclear,
may negatively impact tariffs.

ER3

Extreme
weather event

Chief
Operating
Officer

Probability of extreme weather (such
as storms and heatwaves) impacting
on our business model and capacity
for growth in demand

• Strategy sessions with the Board to

understand movement in the markets
and new competition.

• PMO team to enable and support successful
development and launch of new products
and service offerings.

• Business continuity plans for winter operations

have been formally established.

• Numerous scenario modelling and tested
mitigations for technical failures to the
interconnection cables and disruption to
supply.

• Mitigation plans to manage customer demand

and local emergency generation.

• Flood surveys to identify substations at risk

undertaken regularly.

• Replacement of overhead cables with under

head cables (a small proportion of the network
is overhead cables).

• Alternative and on-Island capability to

generate energy.

• Monitoring weather patterns.

• Enhanced asset management systems.

JERSEY ELECTRICITY Annual Report and Accounts 2023

STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

Group Risk Management

Emerging Risks (continued)

Ref

Emerging risk

Risk owner

Risk Description

Action plans

ER4

Attracting
and retaining
talent

HR Director

ER5 Mental Health

HR Director

Crisis

Talent shortage in the energy
market due to ageing workforce,
limited new/young talent entering
the industry, cost of living in Jersey
(making it difficult to attract talent
from UK/overseas), lack of economic
advancement opportunities
(livelihood crisis) etc.

• Review pay against inflation and benchmark

against comparable jurisdictions.

• Defining the Employee Value Proposition.

• Offering of rental property to help

international hires.

• Tracking turnover and understanding why

employees leave the business / Island.

Mental health stability, coupled
with livelihood crisis, may result
in pervasiveness of mental
health ailments and/or disorders
negatively impacting well-being and
productivity (including mental focus
to work safely).

• Mental health training provided to all staff.

• Mental health first aiders within the business.

• Living Leader program enabling management
to identify and support mental health issues in
their team.

• Tracking the number of employees on long-

term leave (HR KPI).

ER6 Disruptive
technology
in the energy
sector

Chief
Operating
Officer

Advances in technology within the
renewable energy sector, bring both
unknown opportunities and threats
in the long term. Failure to adapt
and exploit opportunities will impact
our ability to remain competitive and
meet changes in customer demands.

• We are assessing the energy needs of the
island over the longer term and how these
might be met, the impact on our business
and timing of change.

• We continue to monitor developments in

the energy technology markets. This includes
attending innovation and future sessions
and attending focus Groups.

ER7

Sophisticated
cyber-attacks

Director of
Technology

Cyber-attacks are part of the
technology landscape today and will
be in the future. No organisation,
government or person will ever
be fully immune to the effect of
cyber-attacks. Cyber-security risks
have always constantly changed,
but sudden advances with AI
have changed the landscape
with unknown attack vectors and
agencies weaponising advanced
technologies. There are future risks
of increases in both the volume and
sophistication of cyber-attacks.

• We anticipate threats will evolve in areas such
as 5G, Internet of Things, vendor software
integrity, quantum computing and the use
of AI and machine learning.

• Evaluating modern AI cyber-security controls

needs to start immediately.

• Forward and modern cyber-security and
technology frameworks that align with JE
technology ambitions and new operational
technology needs must be evaluated as part
organisational changes

JERSEY ELECTRICITY Annual Report and Accounts 2023

STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

Horizon Scanning

On 31 May 2023, the Board reviewed
the emerging risks using a risk radar
approach to identify the time horizon
for each risk. Horizon scanning is not
about predicting the future but to
improve our understanding of the risks
that may impact our business, including
a review of the potential options and
course of actions to mitigate these
emerging risks.

Emerging Risk Table

Ref

Title

Key

ER1

Competition in energy market

Economical

ER2 Natural resource crisis

Political

ER3

Extreme weather event

Environmental

ER4

Attracting and retaining talent

Societal

ER5 Mental Health Crisis

Societal

ER6 Disruptive technology

Technological

ER7

Sophisticated cyber-attacks

Technological

The activity enables management to be make more informed
decisions, which ultimately can help enhance resilience and
preparedness in the face of uncertainty and change.

The risk radar presented below illustrates the results of this
analysis, and indicates the perceived timeline for when each
risk may impact the Company. Management are required
to use this analysis to inform strategy and future planning,
including identifying how the threats may be turned into an
opportunity for the Company.

ER5

ER1

5 to 10 years

2 to 5 years

0 to 2 years

ER2

ER7

ER6

ER3

ER4

JERSEY ELECTRICITY Annual Report and Accounts 2023

STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

Board of Directors

Phil Austin MBE

Wendy Dorman

Tenure on Board

Appointed 12 May 2016 and
Chair from 28 February 2019

Appointed 14 July 2016

Committee Memberships

Nominations Committee

Audit and Risk Committee (Chair)

Remuneration Committee

Nominations Committee

Experience

Financial services background and
board level experience across a wide
range of listed and private companies

Chartered Accountant with audit
and tax experience

Leadership positions including Head
of Tax for PwC Channel Islands
and listed company Non-Executive
Director roles with audit chair
experience for listed companies

Relevant Skills

Extensive experience in leadership
and management

Deep understanding of governance
standards and requirements

Good communication skills

Governance, including compliance
with Corporate Governance
Code for listed companies, risk
management and oversight of ESG
and Sustainability

Leadership and management

Infrastructure investment

Accountancy, audit and taxation

Governance, including compliance
with Corporate Governance
Code for listed companies, risk
management and oversight of ESG
and Sustainability

External Appointments

Chair of Octopus Renewables
Infrastructure Trust Plc

Non-Executive Director of 3i
Infrastructure Plc

Non-Executive Director of CQS New
City High Yield Fund Limited

JERSEY ELECTRICITY Annual Report and Accounts 2023

STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

Chris Ambler

Lynne Fulton

Appointed as Chief Executive
1 October 2008

Appointed as Chief Financial Officer
27 July 2023

Nominations Committee

Chartered Engineer in various
leadership and general management
roles in blue chip multinationals

Strategy consultancy experience
with MBA (INSEAD)

Broad experience across global utility,
chemicals and industrial sectors

Charted Accountant with over 25
years experience in Utilities, both
regulated and non regulated.
Holding leadership roles in
commercial finance, regulation
and strategic business planning

Leadership and management

Strategy development

M&A and corporate finance

Deep understanding of utilities and
the energy market.

Strategy development, M&A, strategic
planning and commercial finance

Strong experience in Regulation,
Sustainability, Strategy Development,
M&A, strategic panning and
commercial finance

Non-Executive Director of Apax
Global Alpha Ltd

Non-Executive Director of Foresight
Solar Fund Ltd

JERSEY ELECTRICITY Annual Report and Accounts 2023

STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

Board of Directors

Amanda Iceton

Alan Bryce

Tenure on Board

Appointed 1 June 2020

Appointed 17 December 2015

Senior Independent Director

Committee Memberships

Audit and Risk Committee

Nominations Committee (Chair)

Remuneration Committee

Audit and Risk Committee

Experience

Relevant Skills

Executive leadership experience as
Chair and Managing Director of global
management consultancy Accenture
UK/Ireland Plc

Extensive board level experience
in electricity generation, and
transmission and distribution in
the UK and USA

Extensive experience of chairing
Audit and Risk committees across UK
Government and listed companies

Non-executive experience in water
industry and wind farm development

Wide range of roles in corporate
strategy, M&A and utility regulation

Digital and cyber skills developed
through work with CPNI and NCSC

Familiarity with UK and US GAAP
accounting

Strategy Leadership

Preparation/approval of UK
government and company accounts
internationally, including USA and
South Africa

Business leadership and governance

Chartered engineer with extensive
knowledge of the utility industry

Asset and operational risk
management

External Appointments

Non-Executive Director of Paragon ID

Non-Executive Director of Standard
Bank Offshore Group Ltd

Non-Executive Director of Northern
Ireland Electricity Networks Ltd

Non-Executive Director of
Northumbrian Water Ltd

JERSEY ELECTRICITY Annual Report and Accounts 2023

STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

Tony Taylor

Kayte O’Neill

Appointed 21 September 2017

Appointed 3 March 2022

Remuneration Committee (Chair)

Audit and Risk Committee

Nominations Committee

Remuneration Committee

Senior management roles in leading
global advertising agencies

Executive leadership roles in
Strategy, Regulation, Markets and
large-scale Transformation.

Extensive experience working
with policymakers and regulators
to develop and implement
frameworks and business models
to support energy transition.

Designing and operating electricity
markets in the UK.

Strategic planning and growth

Leadership and management

Customer experience

Strategic planning

Stakeholder engagement

Marketing and communications

Non-Executive Director of
Jersey Milk Marketing Board

Non-Executive Director of
Channel Radio Ltd

Executive Director on the
Board of National Grid ESO

JERSEY ELECTRICITY Annual Report and Accounts 2023

STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

Directors Report:
for the year ended 30 September 2023

The Directors present their annual report and the audited
financial statements of Jersey Electricity Plc (“the Company”)
and Jersey Deep Freeze Limited (together “the Group”) for
the year ended 30 September 2023.

Principal Activities
The Company is the sole supplier of electricity in Jersey. It
is involved in the generation and distribution of electricity
and jointly invests in assets with Guernsey Electricity Limited
importing power for both islands. It also engages in retailing,
property management, building services and has other
business interests, including software configuration services
and consulting.

Section 172 (1) Statement
We are required under the code to report on this area, and it
is central to our strategy to consider wider stakeholders. This
is despite Section 172 of the Companies Act 2006 not being
applicable to a Jersey incorporated company. Nevertheless,
Jersey Electricity Plc has set out how they deliver against these
duties where appropriate. The Board of Jersey Electricity Plc
considers that it has acted in good faith and in a manner
which it believes promotes the continued success of the
Company, for the benefit of all its stakeholders. In addition to
its shareholders, the Board engages with Government, local
Parishes, suppliers, customers and employees.

Dividends
The Directors have declared and paid, and now recommend the following
dividends in respect of the year ended 30 September 2023:

Preference dividends

5% Cumulative Participating Preference Shares at 6.5%
3.5% Cumulative Non-Participating Preference Shares at 3.5%

Ordinary dividends
Ordinary and ‘A’ Ordinary Shares
Interim paid at 8.00p net of tax for the year ended 30 September 2023 (2022:7.60p net of tax)
Final proposed at 11.40p net of tax for the year ended 30 September 2023 (2022:10.80p net of tax)

2023
£

5,200
3,773

8,973

2022
£

5,200
3,773

8,973

2,450,976
3,492,960

2,328,640
3,309,120

5,943,936

5,637,760

Re-election of Directors
All Directors seek re-election annually at each AGM.

Directors’ and officers’ insurance
During the year the Company maintained liability insurance
for its Directors and Officers.

Policy on payment of creditors
It is Group policy, in respect of all of its suppliers, to settle the
terms of payment when agreeing each transaction, to ensure
that suppliers are made aware of the terms of payment and to
abide by those terms. The number of creditor days in relation
to trade creditors outstanding at the year-end was 2 days
(2022: 10 days).

Substantial Shareholdings
As at 20 December 2023 the Company has been notified of
the following holdings of voting rights of 5% or more in its
issued share capital:

Ordinary Shares
The Government of Jersey hold all of the Ordinary shares
which amounts to 62% of the ordinary share capital and
represents 86.4% of the total voting rights. This is held
as a strategic investment in their balance sheet and not
consolidated.

‘A’ Ordinary Shares
‘A’ Ordinary shares entitle the holder to 1 vote for every 100
shares held whereas the Ordinary shares carry voting rights
of 1 vote for every 20 shares held.

Huntress (CI) Nominees Limited is the largest registered
shareholder of our listed shares and hold 5,382,424 ‘A’
Ordinary shares which represent 5% of the total voting rights.
It is understood that the underlying owners of these shares
are substantially private investors and a fund based in the
Channel Islands

Company Secretary
Andrew Welsby, our HR Director, held this position as an
interim measure, until Fiona Wilson was appointed on
26 July 2023.

Auditor
A resolution to re-appoint PricewaterhouseCoopers CI LLP as
auditor will be proposed at the next Annual General Meeting.

BY ORDER OF THE BOARD
F. WILSON Secretary
20 December 2023

JERSEY ELECTRICITY Annual Report and Accounts 2023

STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

Corporate Governance

Corporate Governance
The Directors are committed to maintaining a high standard of
Corporate Governance in accordance with The UK Corporate
Governance Code 2018 (“the Code”), as incorporated within The
Listing Rules, issued by the Financial Conduct Authority. The
Listing Rules require the Company to set out how it has applied
the main principles of the Code and to explain any instances of
non-compliance. In accordance with Listing Rule (“LR”) 9.8.4 R,
the agreement related to ‘Independent business’ required by
LR 9.2.2A (2) (a) R has been entered into with the Government
of Jersey, with effect from 17 November 2014. The Company
has complied with the independence provisions included in
the agreement during this financial year and believes the
majority shareholder is also compliant. The other applicable
information required by LR 9.8.4 R (5)/(6) is disclosed in external
appointments.

Independence
The non-Executive Directors serving at the balance sheet date
were Wendy Dorman, Amanda Iceton, Kayte O’Neill, Alan
Bryce, Phil Austin and Tony Taylor and they were all considered
independent. On appointment to the Board the required time
commitment is established and any significant changes to
time commitments are notified to the Board. An induction
process is in place for all newly appointed Directors. The Board
is responsible to the Company’s shareholders for the proper
management of the Company. It meets regularly to set and
monitor strategy, review trading performance, perform a
robust assessment of the principal risks that could threaten
the business model, future performance, solvency, or liquidity
(see Principal Risks section on pages 60 to 64), examine
business plans and capital and revenue budgets, formulate
policy on key issues and review the reporting to shareholders.

The Directors have reviewed, and applied, the latest UK
Corporate Governance Code applicable to accounting periods
beginning on or after 1 January 2019, together with the
supporting Guidance on Board Effectiveness within these
financial statements. The Code is available at: www.frc.org.uk.

Board papers are circulated, with reasonable notice, prior to
each meeting to facilitate informed discussion of the matters
at hand. Members of the Board hold meetings with major
shareholders to develop an understanding of the views they
have about Jersey Electricity.

Statement of Compliance
At the time of signing off the 2023 Annual Report the Board
considers that it has complied with the Code, except for
Provision 38 (executive pensions aligned with the workforce)
and this is explained in the Remuneration Report.

The Board
The Board provides effective leadership and currently
comprises six non-Executive and two Executive Directors.
They are collectively responsible for the long-term success of
the Company and bring together a balance of skills, experience,
independence, and knowledge.

The Chairman and the Chief Executive Officer roles are divided
with the former being appointed by the Directors from
amongst their number. Alan Bryce is the Senior Independent
Director.

Table A below sets out the number of meetings (including
Committee meetings) held during the year under review and
the number of meetings attended by each Director.

Performance Evaluation
The effectiveness of the Board is vital to the success of the
Company. An external evaluation took place during 2021 using
Boardroom Dialogue Group Ltd, an external consultancy in
Board matters which has no connection with the Company,
the findings of which were reviewed and actions implemented
in 2022. During 2023, the Board conducted an internal
evalutation of sub-Committees. As the policy is to have an
external review every 3 years, the next review will take place
in 2024. In addition, the non-Executive Directors meet at least
twice a year, without the Executive Directors being present,
with an explicit topic being the performance of the Executive
Directors. Finally, the Senior Independent Director meets
the other non-Executive Directors once a year to discuss the
performance of the Chairman (without his presence).

No of meetings

Board Audit and Risk Remuneration Nominations

C. J. Ambler

P. J. Austin

A. A. Bryce

W. Dorman

L. G. Fulton

A. Iceton

M. P. Magee

K. O’Neill

T. Taylor

3**

5***

* Attendees by invitation

** L. G. Fulton attended all relevant meetings following her appointment to the board on 26 July 2023
*** M. P. Magee attended all relevant meeting up to his retirement from the board on 26 July 2023

JERSEY ELECTRICITY Annual Report and Accounts 2023

STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

• Corporate governance matters

Undertaking a formal and rigorous annual evaluation of
its own performance, that of its Committees and individual
Directors. Review of the Company’s overall corporate
governance arrangements.

• Approval of key Company policies

These include policies on health and safety, share dealing
and diversity.

Internal Audit/Risk Management
There is a permanent internal audit function involved in a
continuous structured review of the Company’s systems and
processes, both financial and non-financial. Internal Audit
manage the process of strategic and operational risk reviews
and facilitate risk review workshops with departmental
managers. The Head of Internal Audit has direct access to
the Audit and Risk Committee Chairman and also attends
ARC meetings, at which risk based internal audit plans are
discussed and approved.

Corporate Governance

Workforce Engagement
During 2020, a workforce Culture and Engagement Forum was
established with representatives from across the Company.
At least one non-Executive Director attends each meeting of
this forum which provides an opportunity to gain first-hand
feedback from the workforce. In addition, the maintenance
of the right culture within Jersey Electricity remains a priority.
The use of staff surveys to collect data, the promotion of
people development (through our ‘Living Leader’ and other
management development programs) and a continued focus
on the safety of both our employees and customers are key
tools in the delivery of this objective.

The key procedures which the Board has established to
provide effective controls are:

Board Reports
Key strategic decisions are taken at Board meetings following
due debate and with the benefit of Board papers circulated
beforehand. The risks associated with such decisions are
a primary consideration in the information presented and
discussed by the Board who are responsible for determining
the nature and extent of the risk it is willing to take to achieve
the strategic objectives. Prior to significant investment
decisions being taken, due diligence investigations include
the review of business plans by the Board.

Management Structure
Responsibility for operating the systems of internal control
is delegated to management.

There are also specific matters reserved for decision by the
Board. A Board Charter detailing the matters reserved and
the roles and responsibilities of the officers of the Company
is available on our website (www.jec.co.uk). A summary of the
key types of decision made by the Board are as follows:

• Strategy and Management including:

Approval of the Company’s long-term objectives and
commercial strategy

Approval of the annual operating and capital expenditure
budgets and any subsequent material changes to them.

• Changes in structure and capital of the Company

• Financial reporting and controls including:

Approval of the Annual Report and Financial Statements.

Declaration of the interim dividend and recommendation
of the final dividend.

• Internal controls/Risk Management

Reviewing the effectiveness of the internal control and
risk management systems. An external review of the risk
management process is conducted every three years.

• Approval of contracts

Including material contracts, investments, capital
expenditure and bank borrowings.

• Board membership and other appointments

Approval of changes to the structure, size and
composition of the Board and key Committees, following
recommendations from the Nominations Committee.

• Remuneration

Determining the remuneration policy for the directors and
other senior management, following recommendations
from the Remuneration Committee.

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STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

Personnel

The Company ensures that personnel are able to execute
their duties in a competent and professional manner through
its commitment to staff training, regular staff appraisals and
organisational structure.

Budgetary Control
Detailed phased budgets are prepared at profit centre level.
These budgets are approved by the Board, which receives
sufficiently detailed financial data to monitor the performance
of the Company with explanations of any material variances.
Audit and Risk Committee
The Audit and Risk Committee (ARC) reviews the effectiveness
of the internal control and risk management processes
throughout the accounting period as outlined above. In
addition, it conducts “deep dive” reviews on specific identified
risks to test assumptions on the substance of such risks and
their mitigation.

More detail on the Group’s principal risks, and how they are
managed, is provided in this report (see the Principal Risks
section on pages 60-64).

The ARC also reviews and monitors the independence of the
external auditors and the non-audit services provided to the
Group.
Stakeholder Engagement
The Company maintains an active dialogue with its largest
shareholders and meetings with Government of Jersey (which
owns 62% of our Ordinary share capital) include both the
non-Executive Chairman as well as the Chief Executive Officer.
The primary responsibility for relationship matters with listed
shareholders lies with the Chief Financial Officer who reports
to each Board meeting on investor relations. Jersey Electricity
also has a number of other important stakeholders including
Government, the local Parishes, suppliers, customers and
employees, and regular presentations are provided to the
Board on how such relationships are managed and can be
developed.

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STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

Nominations
Committee Report

Committee Purpose

Duties of the Committee

The purpose of the Committee is to make recommendations
to the Board in respect of Board composition, Board
appointments, succession planning for senior leadership
roles across the Company, and to support the Board in its
leadership of the Diversity and Inclusion agenda.

Membership and meetings

I am pleased to report on the work of the Nominations
Committee for the financial year ended 30 September 2023.

The Committee comprises a majority of independent non-
Executive Directors, the Chair of the Board and the CEO. It is
supported, when required, by the Human Resources Director
and the Company Secretary, and there were no changes to
the membership during the reporting period. The Committee
met twice, as recorded below. All of the members also met on
other occasions to form the interview panel for the selection
of our new CFO, Lynne Fulton.

Attendance

Alan Bryce (Chair)

Phil Austin

Chris Ambler

Wendy Dorman

Tony Taylor

Meetings

Attended

100%

The Terms of Reference for the Committee and the Terms of
the Appointment of non-Executive Directors are available on
our website (www.jec.co.uk). A summary of the Committee’s
key duties, is:

• To review regularly the structure, size, balance and overall
composition of the Board, and to make recommendations
with regard to any changes, with due regard to the skills
needed for the future.

• To give full consideration to the pipeline of succession at
Board and Executive Leadership Team levels, and to lead
the process for any appointments to the Board.

• To support the annual Board evaluation process and to
make recommendations arising, including the annual
reappointment of NEDs; and

• To support the Board in its leadership of Company culture

in pursuit of greater Diversity and Inclusion.

Board Structure and Composition
During the period, the Committee maintained its oversight of
the Board Structure and Composition, notably in managing
the succession of our Chief Financial Officer (CFO) and
overseeing the recruitment of our new Company Secretary.

As previously reported, Martin Magee advised us in August
2022 of his intention to retire during 2023. The Committee is
grateful to Martin both for his contribution to Jersey Electricity
over the years and for his advance notice of his decision
to retire, as this enabled the search for his successor to be
completed in good time to enable a smooth handover.

Russell Reynolds, recruitment specialists that are independent
of the Company and the Directors, were engaged to conduct
the executive search, which led to our announcement on
18 January of Lynne Fulton as Martin’s replacement and
her formal appointment to the Board on 26 July. Lynne’s
appointment followed an extensive search both on-island
and in the UK, comprising advertising in the Jersey and
national press, and specialist internet-based channels, as well
as a targeted search using Russell Reynolds’ database and
networks. Around 90 potential candidates were identified.
Following an initial interview of around two dozen candidates
by Russell Reynolds, short-listed candidates then visited
Jersey in October, both to see the island and to meet with
members of the Nominations Committee, either face-
to-face or virtually. The Committee then met virtually to
select the final three candidates for interview on island in
November. Lynne’s profile matched well with the Committee’s
requirements for the role. In particular she brings valuable
experience of utilities from previous positions at United
Utilities and Electricity North West, and wider commercial
and finance experience from her roles at contractors offering
infrastructure build and maintenance and specialist support
services. Lynne’s experience of energy markets is also
particularly valuable in leading our energy hedging activities
and in developing our future energy sourcing and product
strategy.

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The Committee also oversaw the process for recruiting our
new Company Secretary and was pleased to recommend
the appointment of Fiona Wilson on 26 July 2023. Fiona joins
us from the Collas Crill Group and is a qualified lawyer. She
has considerable experience gained from both in house and
private practice supporting clients on a range of legal and
Company Secretarial matters.

“During the period, the
Committee maintained
its oversight of the Board
Structure and Composition,
notably in managing the
succession of our Chief
Financial Officer (CFO)
and overseeing the
recruitment of our new
Company Secretary. “

Fiona is a great fit with the JE values and we are benefiting
greatly from her technical skills. We are grateful to Andrew
Welsby, our HR Director, for his agreeing to take on the
additional role of Company Secretary on an interim basis
until Fiona’s appointment.

As part of succession planning, described below, the
Committee has started planning to find successors for two of
our NEDs, Alan Bryce and Wendy Dorman, who will reach nine
years’ service on the Board during 2024/25, and will consider
plans for Chair succession during the coming year. As normal,
we shall be using our annual review of Board skills and
experience needs to inform the recruitment process for
Alan’s and Wendy’s replacements.

In line with Listing Rules on board diversity:

• We comply on gender with at least 40% of our Board being

women.

• We comply with at least one of our senior board positions

being a woman, as our CFO is female.

• We do not comply on ethnicity, as none of our Board is from
a minority ethnic background. We are seeking to address
this in our Board succession plan.

Board Mix of Specialist Skills, Tenure and Gender

Specialist skills

Tenure

Gender

Board Governance

0-3 years 2

Male

Operational/Engineering 2

3-6 years 1

Female 4

6-9 years 4

>9 years 1*

Digital and Cyber

Finance and Accounting

Strategy, M&A

Customers and marketing 3

Energy/Utilities

Sustainability and
Climate Change

*The CEO was appointed in 2008.

Succession Planning
In addition to its consideration of Board structure,
composition, skills and succession, the Committee maintains
oversight more broadly, of the succession pipeline and plans
at the Company’s senior management levels. These comprise
of the six-strong Executive Leadership Team (ELT) and the
around twenty members of the Senior Leadership Team (SLT).

As reported last year, we engaged Norman Broadbent to
carry out a development review of our SLT. At our December
meeting, the Committee reviewed the overall results of
process, which both identified overall “bench” strength and
development needs. Not surprisingly, it also highlighted that
in our relatively small organisation, while many SLT members
had an obvious promotional route, not everyone has. The
Committee is therefore encouraging various initiatives to
create developmental opportunities across the organisation.
At our July meeting, we reviewed the development plans for
SLT members, which set out a two-year programme for each
individual.

For our ELT cohort, Trusted Advisors Partnership (TAP) were
engaged by the Remuneration Committee to facilitate a
360-degree process for each member of the ELT. This has
provided positive and valuable feedback to the Nominations
and Remuneration Committees and helped to inform some
development themes for ELT members. Regarding succession
for the ELT, the Company is continuing to build internal
“bench” strength through the initiatives described above.
Our approach to senior succession remains a mix of external
appointments and internal promotions.

Board Evaluation
The Committee facilitated another internal evaluation of the
performance of the Board, its committees, and the Chair.
Each director again completed a questionnaire, followed
by a 1:1 meeting with the Chair, and a Board discussion to
consider the overall conclusions. Directors also completed
a questionnaire on the Chair’s performance, and the Senior
Independent Director convened a meeting of the NEDs to
review the conclusions. Overall, the results of all this year’s
evaluations were very positive, and Board members confirmed
that composition of the Board and its Committees remain well
balanced for the needs of the business.

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STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

Nominations Committee Report

Building on the completed actions from our last externally
facilitated evaluation in 2021 and last year’s internal
evaluation, Board members have identified four main themes
for action from this year’s evaluation. These are around
clarifying and communicating our role in Jersey’s energy
transition, working with our new Company Secretary on
best practice Board agenda planning, papers and reporting,
and building a more granular understanding of stakeholder
needs. The Board and Committees also support continuing
to use virtual meetings selectively, in particular to enable
“deep dives” on strategic direction and key business topics.
Activities that flowed from previous Board evaluations have
continued throughout the year, including external stakeholder
engagement, and NED participation at the quarterly meetings
of JE’s Culture and Engagement Forum.

Diversity and Inclusion
The Committee continues to support the Board in setting
and monitoring progress against our Diversity and Inclusion
(D&I) strategy. Our goals comprise improving the level of
diversity in the Company, as well as continuing to progress the
development of an even more inclusive workplace culture that
both enables us to attract and retain great and diverse talent.

The composition of our employees by gender is presented
below:

Diversity and inclusion

Company

First Line Reports

Senior leadership team

Executive leadership team

Board

Male

Female

75%

74%

71%

84%

50%

25%

26%

29%

16%

50%

Overall, our Company gender balance has improved
again this year by 2 percentage points, - with encouraging
improvements at First Line Report, Senior Leadership Team
and ELT levels of 2, 7, and 16 percentage points respectively.
We have seen encouraging improvement in the year, with
both our mean and median gender pay gaps which have fallen
by 8% to 13.4% and 5.4% to 13.8% respectively. This outcome
was a result of a continued focus on gender balanced hiring in
groups where women have been underrepresented.

Workforce planning has been an important area of focus
again this year to ensure JE has a clear forecast of human
resource requirements over the coming 3-years. We enjoy a
committed and stable workforce but know that supporting the
Government of Jersey’s Carbon Neutral Roadmap aspirations
will require new skills sets in the business particularly in the
areas of renewable energy and technology to support our
continued success.

Despite significant schools’ engagement over the course of
the year, increasing rates of pay for apprentices to that of
the Island’s Living Wage coupled with a targeted advertising
campaign aimed at non-school leaver, we failed to hire
any women into apprenticeships for a second year. Our
Diversity, Equity and Inclusion strategy is currently being
reviewed and updated and a focus on hiring women into
apprenticeships will remain. Following last year’s award by
Inclusive Employers of “Established” status on their Diversity
and Inclusion Maturity model, the Business has focused
on consolidating the position on its way to our target of

“ Sponsorship of events
like Pride gives us
the opportunity to
demonstrate our
commitment to DEI both
internally and externally. “

“Integrated” in 2024. The current level of maturity means
that our leaders understand and champion the business case
for D&I, building it into our strategy, and into the delivery of
day-to-day services, while continually looking for best practice
to improve our D&I capability. We believe our strategy and
this level of inclusion maturity may be equivalent to a “Silver”
level of accreditation as measured against the Inclusive
Employers accreditation standard and which will be verified in
the coming year. To move forward to “Integrated” and “Gold”
status, would mean that all our “business as usual” processes
would show clear consideration of Diversity, Equity and
Inclusion (DEI) impact, DEI would be ingrained in mindsets
across the organisation, both day-to-day and in strategic
outcomes, leaders and managers would be held accountable
for DEI, and externally JE would be seen as thought leading in
DEI. These are challenging goals and are seen as a stretching
target.

We continue and are building on the processes reported
last year including for example, building DEI considerations
into business change management and new products
and services, and ensuring that we work with like-minded
contractors and suppliers, championed by JE’s Health Safety
and Environment (HSE) team and Procurement teams.
Our D&I Working Group, comprised of employees across
the business belonging to diverse minority groups, has
continued its work, and has been instrumental in shaping
the ongoing DEI strategy for the coming years.

Externally, JE again supported the 2023 Channel Islands
Pride event in September as a gold sponsor. Sponsorship
of events like Pride gives us the opportunity to demonstrate
our commitment to DEI both internally and externally. DEI is
an integral part of or Employer Value Proposition and is
key both to attracting and retaining talented people.
It is again gratifying that we have been asked by other
local organisations to share our experience of D&I best
practice and are happy to provide advice and support.

Board Apprentice
Our Board apprenticeship to encourage greater diversity on
the boards of companies and other public bodies, especially
those based in Jersey, continues. Our current apprentice,
Catherine Madden, is due to leave us in December, and we
intend to offer another board apprentice opportunity in 2024.

A. BRYCE
Chairman
20 December 2023

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JERSEY ELECTRICITY Annual Report and Accounts 2023

STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

Audit and Risk
Committee Report

Membership and Meetings
The committee is made up of independent non-executive
directors. There are currently four serving members, Alan
Bryce, Amanda Iceton, Kayte O’Neill and myself. There have
been no changes in membership during the year. I am
satisfied that the current membership brings a good range of
skills and experience, including recent and relevant financial
experience as well as industry knowledge, digital and cyber
expertise. Full biographies of all members are provided on
pages 68-71.

Four scheduled meetings were held during the year. The
meetings provide a forum for discussions with both Company
management and the external auditor. Meetings are attended,
by invitation, by the Chair, Chief Executive Officer, Chief
Financial Officer, Financial Controller, Director of Technology
and members of both the external audit and internal audit
teams. The Company Secretarial function provides secretarial
support to the Committee.

Following each meeting I report to the Board on areas
discussed and any topics of note and recommendations that
emerged from ARC meetings. All recommendations from the
Committee during the year were accepted by the Board.

The role of the Committee
The key responsibilities of the Committee are to:

• Oversee the independence, effectiveness and remuneration

of the external auditor and the quality of the audit and
overseeing policy on the engagement of the external
auditor to supply non-audit services.

• Monitor the integrity of the financial statements and to
report to the Board on key judgements and significant
issues contained therein.

• Consider, on behalf of the Board, whether the annual report
and financial statements taken as a whole are fair, balanced
and understandable and provide the information necessary
for shareholders to assess the Company’s position and
performance, business model and strategy.

• Review and challenge the effectiveness of the Company’s

internal controls and risk management processes.

• Oversee the review and testing carried out by the internal

audit function on the effectiveness of the Company’s
internal controls.

• Monitor principal and emerging risks and the robustness of

the risk management framework.

• Review and assess management’s oversight of cyber

security risk to systems, assets, data capabilities and data
privacy.

• Review and assess management’s oversight of climate-
related risks and opportunities including the impact of
climate change to strategies, reputation, operations,
asset values and capital.

• Review assurance reports from management, company

secretary and internal audit regarding the risk
management, regulatory compliance, business resilience
and ad hoc reports covering risk management and the
internal control framework.

Key activities during the year
In carrying out its annual responsibilities as set out in the
Corporate Governance Code, specific areas of focus this
year included:

• Assessing progress on the Company’s sustainability

strategy and reporting against TCFD recommendations

• Monitoring energy price volatility and controls in place to

mitigate market and pricing risks.

• Reviewing the risk appetite statements, including risk

tolerances and identifying risks that Jersey Electricity may
be willing to accept.

• Performed horizon scanning of the emerging risks that may
impact the business over the short, medium and long term.

• Further details can be found in the relevant section below.

Whistleblowing Policy
The Committee is responsible for reviewing the Company’s
Whistleblowing or Speak Up policy and management’s
response to any concerns raised through this channel.
The policy was reviewed by the Committee during the year.
No Speak Up incidents occurred during the year.

External Auditors
PricewaterhouseCoopers CI LLP (“PwC”) replaced Deloitte as
our auditor as a result of a tender process for the external
audit in 2020, and they continued as our external auditor
during the year. Following professional guidelines, the audit
engagement partner rotates after a maximum of five years.
Our current engagement partner, Lisa McClure, is in her
fourth year. The Committee review PwC’s independence,
effectiveness, quality and objectivity annually. We considered
the 2023 audit to be effective and of a high quality.

The FRC’s Audit Quality Review (AQR) team routinely monitors
the quality of the audit work of certain audit firms through
inspections of a sample of audits and related procedures at
individual audit firms. Last year, the AQR team selected PwC’s
audit of the Group’s financial statements for the year ended
30 September 2021 as part of their sample for review and
identified no key findings.

The Committee meet separately with the external auditor
during the year without management present to discuss audit
effectiveness and any issues they would like to raise.

The Committee will continue to keep under review all aspects
of the relationship with the external auditor and will initiate
its next tender process at what is deemed an appropriate time
taking into consideration the period since the last tender.

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STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

During the year the Committee put in place a formal Non-
Audit Services policy. All non-audit services provided to the
Group must be pre-approved by the Audit Committee chair
as well as going through PwC’s conflict checks. As disclosed in
Note 5 to the Financial Statements, no non-audit services were
provided to the Group by PwC in the year.

The effectiveness of the external audit is considered on
an ongoing basis driven primarily by discussions with the
external auditor and finance team on the maintenance of
audit quality, reports presented to the Committee by the audit
team in connection with the year end audit, and a meeting
each January to discuss learnings from the audit process that
has just been completed for the prior year. Confirmation of
auditor independence was received from PwC during the
audit process.

The Committee has approved the external auditor’s
remuneration and terms of engagement and is fully satisfied
with the performance, objectivity, quality of challenge and
independence of the external auditor.

Viability and Going Concern
The Committee assessed the going concern and viability
statements in the annual accounts. This involved
consideration of principal and emerging risks to the business
and the suitability of the five-year period adopted in the
viability statement. The Committee took into account the
three year detailed business plan for financial years 2024-
2026 plus a two year forecast to 2028 that was presented to
the board. This considered the continued volatility in energy
and currency markets, higher rates of inflation and interest
currently prevailing. Stress testing carried out by management
based on severe but plausible scenarios were reviewed.

The Committee was satisfied that a robust assessment has
been made by management of the risks that could threaten
the Company’s future performance, solvency and liquidity,
and recommended to the Board that the going concern and
viability statements could be approved.

UK Corporate Governance Code
As a company with a premium listing the Company is required
to report under the 2018 Corporate Governance Code, which
can be found on the website of the Financial Reporting
Council - www.frc.org.uk. We continually strive to meet the
expectations of public company reporting and enhance the
quality of stakeholder communications.

Task Force on Climate-related Financial
Disclosures (TCFD)
The FCA listing rules require premium listed companies to
make disclosures under the TCFD framework for accounting
periods beginning on or after 1 January 2021. This is the
second year in which disclosures are required for the
Company. The Audit and Risk Committee has reviewed TCFD
reporting status throughout the year, including an internal
audit review of our prior year disclosures and work done to
further enhance our TCFD compliance. Further information can
be found on pages 22 to 33. We expect to continue to focus
on this during the coming year as the Company makes further
progress under the four pillars of TCFD and position the
Company to comply with other climate related reporting such
as Taskforce on Nature-related Financial Disclosure (TNFD).

Financial Reporting Council Review

The Financial Reporting Council (FRC) carried out a review
of the Group's annual report and accounts to 30 September
2022, in accordance with Part 2 of the FRC Corporate Reporting
Review Operating Procedures. It is important to understand
the scope and limitations for their review, which was based
on the annual report and accounts and does not benefit from
detailed knowledge of our business or an understanding of the
underlying transactions entered into. It is, however, conducted
by staff of the FRC who have an understanding of the relevant
legal and accounting framework.

The FRC have summarised and published the main findings
and outcomes from the review on their website.

In addition to their findings, they provided matters for
consideration which have allowed us enhance some
disclosures in this year's report.

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STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

Audit and Risk Committee Report

Fair, balanced and understandable
As part of the review of the annual and interim financial
statements, the Committee reviews the significant issues
and in particular any critical accounting judgements and
estimates identified by the Company and discussed with the
external auditor, which are disclosed in Note 2 to the Financial
Statements (Critical Accounting Judgements and key sources
of estimation uncertainty). Comprehensive position papers on
each key area are produced by the Finance team at both the
half and full year. The Committee reviews any year-on-year
changes in methodology for reasonableness and assesses the
impact of any new accounting policies.

The Committee is also responsible for monitoring the
controls which are in force (including financial, operational
and compliance controls and risk management procedures)
to ensure the integrity of the financial information reported
to stakeholders. The Committee considers reports from the
internal and external auditors and from management and
provides comment on salient issues to the Board.

On behalf of the Board, the Committee considered whether
the 2023 annual report and financial statements taken as a
whole are fair, balanced and understandable, and whether
the disclosures are appropriate. The Committee reviewed
the Group’s procedures around the preparation, review and
challenge of the report and consistency of the narrative
sections within the financial statements and the use of
alternative performance measures and associated disclosures.
The Committee also considers any potential inconsistencies
raised by the external auditor.

Following its review, the Committee is satisfied that the
Annual Report is fair, balanced and understandable, and
provides the information necessary for shareholders and
other stakeholders to assess the Company’s position and
performance, business model and strategy, and has advised
the Board accordingly.

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STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

Internal Control and Risk Management
The Board is responsible for establishing and maintaining
the Company’s system of internal control and for the
management of risk. Internal control systems are designed
to meet the particular needs of the business and the risks
to which it is exposed, and by their nature can provide
reasonable but not absolute assurance against material
misstatement or loss. Oversight of the risk management
framework and internal controls is delegated to the
Committee.
Internal Audit
In my capacity as chair of ARC, I have regular meetings
with Internal Audit to evaluate both performance and any
impediments that might exist, which would constrain their
work. The Head of Internal Audit has a direct reporting line to
myself and reports operationally to the Chief Financial Officer.
The ARC approves the programme of work on an annual
basis and monitors results and follow up actions, reporting to
the Board on any significant findings. The review of reports
provided by Internal Audit and the monitoring of action points
relating to findings provides the Committee and the Board
with comfort over the functioning of internal controls.

The Company’s internal audit activities are carried out by our
internal audit team, with some audits outsourced to BDO or
other third-party suppliers overseen by the Head of Internal
Audit. The Committee also monitor the independence of BDO,
taking account of any other services provided to the Company.
The scope of internal audit reviews is appraised at the start of
each review which has allowed us to identify areas in which
controls can be strengthened.

A number of audit reviews carried out produced low or
moderate findings. A cyber security review carried out
in March resulted in some significant findings that were
promptly rectified. A follow up review was carried out in May
which confirmed the significant findings were cleared. It was
noted that the risks identified in the initial review identified
valuable insights from technology specialist in the field which
has resulted in Jersey Electricity further hardening the IT
environment and improving cyber security measures.

Risk Management
During the year the Board carried out its annual review of
the Company’s risk appetite and mapping to principal risks.

A risk management review was commissioned in 2021
to assess the Company’s overall risk maturity. The report
concluded that the Company is in most respects at the
“Developing” level, with recommendations which could
allow it to move towards an “Integrated” rating. The
recommendations were discussed by the Committee
and appropriate actions agreed. A follow-on review was
completed in November 2022 which concluded that the
Company remains at the Developing level, albeit with several
recommendations from the initial report having been
implemented. The initial report identified that the Risk and
Internal Audit functions are not clearly separated, with the
same individual responsible for both. Since the report steps
have been taken to clarify the two functions, including hiring
a new individual to the team to enable greater separation.

The Committee reviewed the risk register and discussed risks
that were increasing, decreasing or static, together with a
review of the effectiveness of mitigations. New and emerging
risks were also considered, horizon scanning was performed
on the emerging risks to identify expected timelines of when
the Board believe risks may become realised. The focus of
our work this year, as in the previous year, was around market
volatility and impact on future pricing, and the war in Ukraine
and implications for energy security. These two areas have
been considered in depth, including a review of enhanced
mitigation plans and the Board’s review of the five-year plan.
This is likely to continue to be an area of focus in the coming
year.

Further details on risks and mitigations are set out in the
Group risk management section on pages 56 to 67.

ARC Effectiveness
During the year the Board carried out a self-evaluation of its
effectiveness, including a review of the Audit Committee and
myself as Chair. As a result of the review, Board members who
are not members of the Audit Committee have been invited to
attend future meetings.

I would like to thank members of the Committee, management
and PwC for their continued support throughout the year.

W. DORMAN
Audit and Risk Committee (Chair)
20 December 2023

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STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

Remuneration
Committee Report

On behalf of the Board, I am pleased to
present the Remuneration Committee’s
(the Committee) report for the financial
year ended 30 September 2023.
Firstly, I would like to thank the other Committee members
for their valuable help during the last year, being Phil Austin,
Amanda lceton and Kayte O’Neill.

The terms of reference for the Committee have been updated
during the course of this year, in line with the UK Corporate
Governance Code, and approved by the Board, and they are
available on the Company’s website (www.jec.co.uk).

Three meetings of the Committee took place during the
last financial year with 100% attendance by all Committee
members.

Remuneration Policy

In line with the authority delegated by the Board, the
Committee sets the Company’s Remuneration Policy and is
responsible for determining the remuneration terms and
conditions of employment for the Executive Directors. The
Committee also reviews the remuneration for the broader
senior management team and the general pay policy for the
wider workforce to ensure there is a degree of alignment
across the organisation.

The Committee’s key considerations in reviewing Executive
Directors’ remuneration included alignment with the
strategic objectives of the business and the extent to which
remuneration will attract, motivate and retain the talent
needed to achieve the long-term success of the Company.
The Committee aims to set remuneration packages for the
Executive Directors that reflect the market for similarly sized
roles and fairly reward them for their contribution to the
overall performance of the Company, over both the short
and long term. Remuneration packages currently comprise
basic salary and benefits together with a performance related
annual bonus. Benefits for Executive Directors principally
consist of membership of a pension scheme, a car allowance,
private health care and a subsidised loan to assist with
housing.

The salary and benefits for the Executive team are reviewed
by the Committee each October.

Benchmarking

The Committee regularly commissions expert third-party
advisors to undertake a comprehensive review of the
competitor landscape to benchmark the remuneration for
our Executive Directors and also to advise on the quantum
and relevant structuring of Executive compensation.
Such exercises benchmark our compensation packages
against comparable companies in the UK/EU, as this is
considered the relevant labour market for the skills required
and also makes use of locally focused benchmarking data.

During 2022 the Committee were advised by Mercer, the
independent remuneration consultants.

Mercer concluded that Executive Director remuneration was
below median levels in terms of base salary and, particularly
so, due to the absence of a Long-Term Incentive Plan (LTIP).
The Committee thus gave considerable thought to whether
an incremental LTIP should be introduced but determined
that this would not be suitable at this juncture. To address
the shortfall in total remuneration against benchmarks, the
Committee determined to increase base pay of Mr Ambler by
7.5% and by 5.0% for Mr Magee. In addition, both Executive
Directors were awarded increases of 6.5% on base salary, in
line with the wider employee population.

Variable Component of Executive Remuneration

The Executive annual bonus scheme is designed to promote
the short and long-term success of Jersey Electricity and
progress on delivering the vision and strategy. The bonus
payable to the Executive Directors is performance related,
taking account of delivery against both corporate and
personal objectives which are agreed by the Remuneration
Committee, and approved by the Board, before the start of
the financial year. This Corporate Scorecard is also shared
across the wider management team to ensure alignment of
understanding regarding priorities. The Corporate Scorecard
covers the core measures of customer service/satisfaction,
employee engagement, health and safety, financial
performance and delivery on key strategic objectives. For
example, during the year to September 2023, key strategic
objectives in the Corporate Scorecard included a review of
JE’s security of supply standard and resilience plans; scenario
planning for future energy sourcing, in line with Jersey’s
carbon neutral roadmap, and the delivery in the short term
of on-island renewable energy projects. The Scorecard has
linkages to both our sustainability and TCFD objectives.

Each Executive Director has a maximum cap on their total
variable pay. These maximum total variable awards are
payable for outstanding performance only. The bonus scheme
was amended in 2018 to allow the Committee the discretion
to defer up to 50% of the award for a period of two years,
with the ultimate pay-out linked to movements in the listed
share price in the period before vesting. The deferred bonus
represents a portion of the bonus payable to the executive
directors, attributable to the year ended 30 September 2022.
The estimated deferred amount was £56,440 for Mr. Ambler,
which will be payable October 2024. The deferred element of
the bonus is subject to malus and clawback provisions.

JERSEY ELECTRICITY Annual Report and Accounts 2023

STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

The remuneration of basic salary/fees and bonuses paid in year as well as the deferred bonus attributable to the prior year,
to Directors for the year ended 30 September 2023 was as follows:

EXECUTIVE DIRECTORS

C. J. Ambler

298,515

93,000

56,440

16,255

464,210

425,040

Basic

Bonus
salary/fees paid in year
£

Bonus
deferred
£

Benefits
in kind
£

Total
2023
£

Total
2022
£

L. G. Fulton (appointed 26 July 2023)

M. P. Magee (retired 26 July 2023)

35,000

205,669

100,000

NON-EXECUTIVE DIRECTORS

P. J. Austin

A. A. Bryce

W. Dorman

A. Iceton

K. O’Neill (appointed 3 March 2022)

T. Taylor

Total

6,110

41,110 -

10,948

316,617

313,948

1,551

59,551

37,551

36,551

33,551

35,551

44,762

31,762

29,762

26,762

17,247

26,762

58,000

36,000

35,000

32,000

34,000

768,184

193,000

56,440

42,619

1,060,243

916,045

Service Contracts

The Executive Directors’ service contracts provide for a notice
period of 12 months, and they are put forward for annual
re-election at each Annual General Meeting (AGM). The non-
Executive Directors’ service contracts have no unexpired term
at the time of election, or re-election, at the AGM.

Pension Benefits

The Company has two pension plans available to employees
– a defined benefit scheme, which closed to new members in
2013, and a defined contribution scheme which remains open
to all staff. The defined benefit scheme has a contribution
rate of 20.6% for the employer, and 6% for the employee.

The defined benefit pension scheme provides for no
contractual increases for pensions in payment. It was agreed
by the Board at the time of Mr Ambler’s appointment that
he would participate in a non-contributory version of the
defined benefit scheme (see also page 73, the Statement of
Compliance section).

Ms Fulton is a member of the defined contribution scheme.

Set out below are details of the pension benefits to which
each of the Directors is entitled. These pensions are restricted
to the scheme in which the Director has earned benefits
during service as a Director but include benefits under the
scheme for service both before and after becoming a Director,
including any service transferred into the scheme from a
previous employment.

Increase

in accrued

pension during
the year1

Accrued

pension at
30.9.20232

Transfer

value at
30.9.20233

Transfer

value at
30.9.20223

Increase/

Directors’

(decrease) in

contributions

transfer value

during year

less Directors
contributions4

£86,983

(£8,914)

C. J. Ambler

M. P. Magee

Notes

£15,014

£15,441

£91,599

£128,922

£1,082,968

£1,819,020

£995,985

£1,813,973

-5
£13,961

1. The nominal increase in accrued pension during the year represents the additional accrued pension entitlement at the year-end compared to the previous year-end, which can be

seen in last year’s Director's Disclosures paper. The employer cash contributions during the year were £79,405 and £50,841 for Mr. Ambler and Mr. Magee respectively.

2. The pension entitlement shown, calculated using the data provided by the Company on 14 September 2023, is that which would be paid annually on retirement at age 60 or at date

of calculation if over National Retirement Age, based on service at the year-end.

3. The transfer values have been calculated using the basis and method appropriate at each reporting date. It is assumed that the deferred pension commences from the earliest age

at which the member can receive an unreduced pension. The transfer values include the value of any accrued AVC pensions.

4. The increase in transfer value over the year is after deduction of contributions made by the Director and transfers-in during the year.

5. As highlighted in the table above, it was agreed by the Board at the time of Mr. Ambler’s appointment that he would participate in a non-contributory version of the defined benefit

pension scheme.

6. Along with all other Scheme members, Directors have the option to pay Additional Voluntary Contributions (AVCs) to the Scheme to purchase additional final salary benefits.

AVCs paid by the Directors during the year were nil.

JERSEY ELECTRICITY Annual Report and Accounts 2023

STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

Remuneration Committee Report

CEO Pay Ratio

Workforce Engagement

The CEO pay ratio was disclosed for the first time in 2021.
This reflects how the total remuneration of the CEO compares
to the rest of the employees in the organisation at the 25th,
50th, and 75th percentiles. The increase shown in the table
below reflects a market adjustment to CEO terms following
an external benchmarking review.

Year

2023

2022

2021

25th %ile

50th %ile

75th %ile

8.7:1

8.1:1

8.4:1

6.5:1

6.2:1

6.3:1

4.6:1

4.3:1

4.4:1

Share Schemes

At the 2011 AGM approval was granted to launch an all-
employee share scheme. To date, 4 tranches of shares have
been issued to employees with a maximum total of 400 shares
per employee having vested. The last tranche of 100 shares
issued during the 2020 financial year vested in September
2023. There are no other share-based incentives such as
option schemes or long-term incentive plans operated by the
Company. However, the Committee has the discretion to defer
up to 50% of the performance bonus to Executive Directors
for a period of two years with the ultimate pay-out linked
to movements in the listed share price in the period before
vesting.

Under the most recent changes to the UK Corporate
Governance Code, committees are required to disclose more
details on workforce engagement and wider remuneration
considerations. As detailed elsewhere in the Annual
Report, the Company has conducted employee surveys
for a number of years which provide very valuable data on
employee engagement across a number of factors, including
remuneration. Employee engagement is a key aspect of the
Corporate Scorecard. In addition, each year the Committee is
provided with a paper setting out details of all employee pay
and workforce policies across the Company. The discussions
on this topic provide us with helpful insights for framing
executive pay considerations.

During the 2023 financial year, the workforce engagement
and culture forum met 4 times. Each session was attended by
one of our non-Executive Directors, which provided an ideal
opportunity to gain first hand feedback from the workforce.

Non-Executive Directors’ Remuneration

The remuneration of the Non-Executive Directors (NED) is
determined by the Executive Directors, with the assistance
of independent advice concerning comparable organisations
and appointments and also taking into account the particular
Committees in which they are involved.

Mercer were engaged to conduct a benchmarking exercise
on NED remuneration and provide objective advice. Having
not been reviewed since 2017, the fees were deemed to have
fallen behind market comparators and were increased to
£30,000 for the NEDs and £53,000 for the Chair.

A small premium was paid in the financial year to those who
chaired Committees (Audit & Risk: £5,000; Jersey Electricity
Defined Benefit Pension Scheme: £5,000; Remuneration:
£4,000; Nomination: £2,000) and to those who were members
of the Audit & Risk Committee (£2,000) for additional
responsibility, and to Directors based off-Island (£2,000)
for travelling time.

External Appointments

The Company encourages Executive Directors to broaden
their experience by accepting non-Executive appointments
to companies or other organisations outside the Group.
Such appointments are subject to prior approval by the
Board, having taken into consideration the expected time
commitments, and the Board also determines the extent to
which any fees may be retained by the Director.

JERSEY ELECTRICITY Annual Report and Accounts 2023

STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

At the balance sheet date, the external appointments held by
Executive Directors, excluding those directly connected with
their employment by the Company, were as follows:

C. J. Ambler

Foresight Solar Fund Ltd and Apax Global Alpha Ltd

The total non-Executive Director fees for such appointments
were £95,838 of which £76,670 was retained by the individual,
and the remainder paid to the Company.

M. P. Magee (retired 26 July 2023)

Jersey Post International Limited

During M. P. Magee's appointment as Executive Director
for the Company, his non-Executive Director fee for his
appointment at Jersey Post International Limited was £18,750,
of which £15,000 was retained by the individual and the
remainder paid to the Company.

Directors’ Loans

At the time of hiring the Executive Directors, and bringing
them over to live in Jersey, the Company provided secured
loans to assist them with the purchase of a residential
property on the island. Since then, substantial, or full,
repayments have been made by the Executive Directors
and the balances on such loans were:

C. J. Ambler

30.9.2023

30.9.2022

£300,000

Directors’ Share Interests

The Directors’ beneficial interests in the shares of the
Company at 30 September 2023 were as shown in the
table below:

A Ord Shares

Preference
3.5%

Preference
5%

2023

7,720

4,500

7,000

3,500

9,000

13,800

6,000

2022

7,620

4,500

7,000

3,500

9,000

13,800

3,500

2023

2022

2023

2022

800

160

51,520

48,920

800

160

C. J. Ambler

A. A. Bryce

P. J. Austin

W. Dorman

T. Taylor

M. P. Magee*

A. Iceton

K. O'Neill

*As at retirement 26 July 2023

There have been no other changes in the interests set out above between 30 September 2023 and 20 December 2023.

T. TAYLOR
Chairman
20 December 2023

JERSEY ELECTRICITY Annual Report and Accounts 2023

STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

Financial Statements

Directors’ Responsibilities for the Financial
Statements

The Directors are responsible for preparing the Annual
Report, Directors’ Remuneration Report and the Financial
Statements in accordance with applicable law and regulations.

Companies (Jersey) Law 1991 (“Company Law”) requires the
Directors to prepare Financial Statements for each financial
year. The Directors are required by the IAS Regulation
to prepare the Group Financial Statements under IFRS
(International Financial Reporting Standards) as adopted
by the European Union. The Financial Statements are also
required by Company Law to give a true and fair view of the
state of affairs of the Company and of the profit or loss of the
Company for that period.

International Accounting Standard 1 requires that Financial
Statements present fairly for each financial year the Group’s
financial position, financial performance and cash flows.
This requires the faithful representation of the effects of
transactions, other events and conditions in accordance
with the definitions and recognition criteria for assets,
liabilities, income and expenses set out in the International
Accounting Standards Board’s ‘Framework for the preparation
and presentation of financial statements’. In virtually all
circumstances, a fair presentation will be achieved by
compliance with all applicable IFRS. However, Directors are
also required to:

• properly select and apply accounting policies;

• present information, including accounting policies, in a

manner that provides relevant, reliable, comparable and
understandable information;

• provide additional disclosures when compliance with the

specific requirements in IFRS are insufficient to enable users
to understand the impact of particular transactions, other
events and conditions on the entity’s financial position and
financial performance; and

• make an assessment of the Company’s ability to continue as

a going concern.

The Directors are responsible for keeping proper accounting
records that disclose with reasonable accuracy at any time
the financial position of the Company and Group and enable
them to ensure that the financial statements comply with
the Companies (Jersey) Law 1991. They are also responsible
for safeguarding the assets of the Company and Group and
hence for taking reasonable steps for the prevention and
detection of fraud and other irregularities.

• The Directors are responsible for the maintenance and
integrity of the corporate and financial information
included on the Company’s website. Legislation in Jersey
and in the United Kingdom governing the preparation and
dissemination of Financial Statements may differ from
legislation in other jurisdictions.

• The Directors consider that the Group has adequate

resources to continue in operational existence for the
foreseeable future. The Financial Statements are therefore
prepared on a going concern basis. Further details of the
Group’s going concern review are provided in note 1 of the
financial statements on page 90.

Having taken advice from the ARC, the Board considers the
Annual Report and financial statements, taken as a whole, to
be fair, balanced and understandable and that they provide
the information necessary for shareholders to assess the
Company’s and Group’s performance, business model and
strategy.

Responsibility Statement

We confirm that to the best of our knowledge:

• the financial statements, prepared in accordance with

International Financial Reporting Standards as adopted by
the European Union, give a true and fair view of the assets,
liabilities, financial position and profit of the Company and
the undertakings included in the consolidation taken as a
whole; and

• the management report includes a fair review of the

development and performance of the business and the
position

• of the Company and the undertakings included in the

consolidation taken as a whole, together with a description
of the principal risks and uncertainties that they face.

By order of the Board

C. J. AMBLER
Chief Executive
20 December 2023

L. Fulton
Chief Financial Officer
20 December 2023

The notes on pages 102 to 129 form an integral part of these accounts. The independent auditor’s report is on pages 92 to 97.

JERSEY ELECTRICITY Annual Report and Accounts 2023

STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

Independent Auditor’s Report to the Members of Jersey Electricity plc

Report on the audit of the consolidated financial statements

Our Opinion

In our opinion, the consolidated financial statements give a true and fair view of the consolidated financial position of Jersey Electricity plc
(the “company”) and its subsidiaries (together “the group”) as at 30 September 2023, and of their consolidated financial performance and
their consolidated cash flows for the year then ended in accordance with International Financial Reporting Standards as adopted by the
European Union and have been properly prepared in accordance with the requirements of the Companies (Jersey) Law 1991.

What we have audited

The group’s consolidated financial statements comprise:

•

the consolidated balance sheet as at 30 September 2023;

the consolidated income statement for the year then ended;

the consolidated statement of comprehensive income for the year then ended;

the consolidated statement of changes in equity for the year then ended;

the consolidated statement of cash flows for the year then ended; and

the notes to the consolidated financial statements, which include significant accounting policies and other explanatory information.

Basis For Opinion

We conducted our audit in accordance with International Standards on Auditing (“ISAs”). Our responsibilities under those standards are
further described in the Auditor’s responsibilities for the audit of the consolidated financial statements section of our report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence

We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the consolidated
financial statements of the group, as required by the Crown Dependencies’ Audit Rules and Guidance. We have fulfilled our other ethical
responsibilities in accordance with these requirements.

Our Audit Approach

Audit scope

• We conducted our audit work in Jersey.

• We tailored the scope of our audit taking into account the operations of the group, the accounting processes and controls and the

industry in which the group operates.

• The group is based solely in Jersey and the consolidated financial statements are a consolidation of the company, Jersey Deep Freeze

Limited (“JDF”) and Jersey Offshore Wind Limited (“JOWL”).

• Our audit work was focused on the company as it contributes substantially all of the group’s total assets and profit from operations

before taxation. A lower level of focus was placed on balances and transactions at the subsidiaries, based on our risk assessment and
their minor contribution to the group’s profit from operations before taxation.

Materiality

• Overall group materiality: £740,300 (2022: £523,000)

based on approximately 5% of profit from operations before taxation.

• Performance materiality: £555,200 (2022: £392,000).

Key audit matters

• Recognition of energy and retail revenue.

• Assessment of pension assumptions applied in the valuation of the defined benefit obligation.

The scope of our audit

As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the consolidated financial
statements. In particular, we considered where the directors made subjective judgements; for example, in respect of significant accounting
estimates that involved making assumptions and considering future events that are inherently uncertain. As in all of our audits, we also
addressed the risk of management override of internal controls, including among other matters, consideration of whether there was
evidence of bias that represented a risk of material misstatement due to fraud.

JERSEY ELECTRICITY Annual Report and Accounts 202391

STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

Independent Auditor’s Report to the Members of Jersey Electricity plc (continued)

Key audit matters

Key audit matters are those matters that, in the auditor’s professional judgement, were of most significance in the audit of the consolidated
financial statements of the current period and include the most significant assessed risks of material misstatement (whether or not due to
fraud) identified by the auditor, including those which had the greatest effect on: the overall audit strategy; the allocation of resources in
the audit; and directing the efforts of the engagement team. These matters, and any comments we make on the results of our procedures
thereon, were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon,
and we do not provide a separate opinion on these matters.

This is not a complete list of all risks identified by our audit.

Key audit matter

How our audit addressed the Key audit matter

Recognition of energy and retail revenue

Refer to note 1 (Accounting policies), and note 3 (Business segments)
to the consolidated financial statements.

The group recognised £97.1m of energy revenue and £18.6m of
retail revenue.

Revenue from the energy segment comprises charges for the
consumption of electricity by customers and service connections.

Revenue from the retail segment is derived from the sale of
consumer products in the company’s “Powerhouse” store and
online.

Energy and retail revenue are material to the consolidated
financial statements and revenue recognition was identified as an
area of focus in the audit plan we presented to the Audit and Risk
Committee.

We obtained an understanding and evaluated the overall control
environment around the recognition of revenue from energy and
retail.

We assessed the accounting policy for compliance with the
accounting framework.

For energy revenue:

We evaluated the operating effectiveness of the IT General Controls
surrounding the smart meter, billing and general ledger systems.

We traced data from the meter reading systems to the general
ledger system.

We applied approved tariff rates to the readings from the general
ledger system and recalculated the expected revenue.

We reconciled the expected revenue to the invoices raised to
customers from the general ledger system.

For retail revenue:

We evaluated the operating effectiveness of the IT General Controls
surrounding the electronic point-of-sale system sitting within
Navision and general ledger system.

We performed a margin analysis between cost of sales and revenue
based on the data obtained from the general ledger. The margin
analysis was based on tests of detail performed on the cost of sales
by agreeing a sample of expenses to supporting documentation.

For both energy and retail revenue, we matched revenue from the
general ledger system to receipts in the bank statement using data
analytics and investigated material unmatched items.

Based on the work detailed above, we had no material matters to
report to those charged with corporate governance.

Assessment of pension assumptions applied in the valuation of
defined benefit obligation

We obtained an understanding and evaluated the overall control
environment around the defined benefit obligation.

Refer to note 1 (Accounting policies), note 2 (Critical Accounting
Judgements and key sources of estimation uncertainty), and note 16
(Pensions) to the consolidated financial statements.

The group has a defined benefit pension plan that was recognised
as a net surplus of £25.5m at the year-end. This comprises
estimated plan liabilities of £85.6m and plan assets of £111.1m.

We consider the valuation of the defined benefit obligation
liabilities to be a key audit matter as the valuation requires
significant levels of judgement and technical expertise including
the use of actuarial assessment to support the directors in
selecting appropriate assumptions. Changes in a number of
key financial and demographic assumptions (including discount
rates, salaries increase, inflation, and mortality rates) can have a
material impact on the calculation of the pension obligation.

The group used an independent qualified actuary to assess the
defined benefit obligation at year end.

We assessed the accounting policy for compliance with the
accounting framework.

We confirmed that the group’s actuarial experts are qualified,
appropriately affiliated to third party industry bodies, and are
independent of the group.

We engaged our auditor’s experts to evaluate the assumptions
made in relation to the valuation of the scheme liabilities.

We benchmarked the various assumptions used and compared
them to our internally developed benchmarks.

We considered the consistency and appropriateness of
methodology and assumptions applied compared to the prior year
end and the most recent actuarial valuation.

We tested the completeness and accuracy of the retirement benefit
obligation disclosures.

Based on the work detailed above, we had no material matters to
report to those charged with corporate governance.

JERSEY ELECTRICITY Annual Report and Accounts 2023STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS92

STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

Independent Auditor’s Report to the Members of Jersey Electricity plc (continued)

How we tailored the audit scope

We tailored the scope of our audit to ensure that we performed enough work to be able to give an opinion on the consolidated financial
statements as a whole, taking into account the structure of the group, the accounting processes and controls, the industry in which the
group operates, and we considered the risk of climate change and the potential impact thereof on our audit approach.

Materiality

The scope of our audit was influenced by our application of materiality. We set certain quantitative thresholds for materiality. These,
together with qualitative considerations, helped us to determine the scope of our audit and the nature, timing and extent of our audit
procedures on the individual financial statement line items and disclosures and in evaluating the effect of misstatements, both individually
and in aggregate on the consolidated financial statements as a whole.

Based on our professional judgement, we determined materiality for the consolidated financial statements as a whole as follows:

Overall group materiality

£740,300 (2022: £523,000).

How we determined it

Approximately 5% of profit from operations before taxation

Rationale for benchmark applied

We believe that group’s profit from operations before taxation is the most
appropriate benchmark because this is the key metric of interest to members.
It is also a generally accepted measure used for companies in this industry.

We use performance materiality to reduce to an appropriately low level the probability that the aggregate of uncorrected and undetected
misstatements exceeds overall materiality. Specifically, we use performance materiality in determining the scope of our audit and the
nature and extent of our testing of account balances, classes of transactions and disclosures, for example in determining sample sizes.
Our performance materiality was 75% (2022: 75%) of overall materiality, amounting to £555,200 (2022: 392,000) for the group financial
statements.

In determining the performance materiality, we considered a number of factors – the history of misstatements, risk assessment and
aggregation risk and the effectiveness of controls - and concluded that an amount at the upper end of our normal range was appropriate.

We agreed with the Audit and Risk Committee that we would report to them misstatements identified during our audit above £37,000
(2022: £26,000) as well as misstatements below that amount that, in our view, warranted reporting for qualitative reasons.

Reporting on other information

The other information comprises all the information included in the Annual Report and Accounts 2023 (the “Annual Report”) but does not
include the consolidated financial statements and our auditor’s report thereon. The directors are responsible for the other information
which includes reporting based on the Task Force on Climate-related Financial Disclosures (“TCFD”) recommendations.

Our opinion on the consolidated financial statements does not cover the other information and we do not express any form of assurance
conclusion thereon.

In connection with our audit of the consolidated financial statements, our responsibility is to read the other information and, in doing so,
consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained in
the audit, or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material
misstatement of this other information, we are required to report that fact. We have nothing to report based on these responsibilities.

Responsibilities for the consolidated financial statements and the audit

Responsibilities of the directors for the consolidated financial statements

As explained more fully in the Statement of Directors’ Responsibilities, the directors are responsible for the preparation of the consolidated
financial statements that give a true and fair view in accordance with International Financial Reporting Standards as adopted by the
European Union, the requirements of Jersey law and for such internal control as the directors determine is necessary to enable the
preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, the directors are responsible for assessing the group’s ability to continue as a going
concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors
either intend to liquidate the group or to cease operations, or have no realistic alternative but to do so.

JERSEY ELECTRICITY Annual Report and Accounts 202393

STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

Independent Auditor’s Report to the Members of Jersey Electricity plc (continued)

Auditor’s responsibilities for the audit of the consolidated financial statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high
level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when
it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be
expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

Our audit testing might include testing complete populations of certain transactions and balances, possibly using data auditing
techniques. However, it typically involves selecting a limited number of items for testing, rather than testing complete populations.
We will often seek to target particular items for testing based on their size or risk characteristics. In other cases, we will use audit sampling
to enable us to draw a conclusion about the population from which the sample is selected.

As part of an audit in accordance with ISAs, we exercise professional judgement and maintain professional scepticism throughout the
audit. We also:

•

Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design
and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis
for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as
fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the group’s internal control.

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures
made by the directors.

Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence
obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the group’s ability to
continue as a going concern over a period of at least twelve months from the date of approval of the consolidated financial statements.
If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in
the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the
audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the group to cease to
continue as a going concern.

Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and
whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair
presentation.

Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the group
to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of
the group audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and
significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding
independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the
audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in
our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we
determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be
expected to outweigh the public interest benefits of such communication.

Use of this report

This report, including the opinions, has been prepared for and only for the members as a body in accordance with Article 113A of the
Companies (Jersey) Law 1991 and for no other purpose. We do not, in giving these opinions, accept or assume responsibility for any other
purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior
consent in writing.

Report on other legal and regulatory requirements

Company Law exception reporting

Under the Companies (Jersey) Law 1991 we are required to report to you if, in our opinion:

• we have not received all the information and explanations we require for our audit;

• proper accounting records have not been kept; or

•

the consolidated financial statements are not in agreement with the accounting records.

We have no exceptions to report arising from this responsibility.

JERSEY ELECTRICITY Annual Report and Accounts 202394

STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

Independent Auditor’s Report to the Members of Jersey Electricity plc (continued)

Corporate governance statement

The Listing Rules require us to review the directors’ statements in relation to going concern, longer-term viability and that part of the
corporate governance statement relating to the company’s compliance with the provisions of the UK Corporate Governance Code specified
for our review. Our additional responsibilities with respect to the corporate governance statement as other information are described in
the Reporting on other information section of this report.

Based on the work undertaken as part of our audit, we have concluded that each of the following elements of the corporate governance
statement, included within Group risk management, the Statement of Director’s responsibilities and the Financial Review is materially
consistent with the consolidated financial statements and our knowledge obtained during the audit, and we have nothing material to add
or draw attention to in relation to:

•

The directors’ confirmation that they have carried out a robust assessment of the emerging and principal risks;

The disclosures in the Annual Report that describe those principal risks, what procedures are in place to identify emerging risks and an
explanation of how these are being managed or mitigated;

The directors’ statement in the consolidated financial statements about whether they considered it appropriate to adopt the going
concern basis of accounting in preparing them, and their identification of any material uncertainties to the group’s ability to continue
to do so over a period of at least twelve months from the date of approval of the consolidated financial statements;

The directors’ explanation as to their assessment of the group’s prospects, the period this assessment covers and why the period is
appropriate; and

The directors’ statement as to whether they have a reasonable expectation that the company will be able to continue in operation
and meet its liabilities as they fall due over the period of its assessment, including any related disclosures drawing attention to any
necessary qualifications or assumptions.

Our review of the directors’ statement regarding the longer-term viability of the group was substantially less in scope than an audit and
only consisted of making inquiries and considering the directors’ process supporting their statements; checking that the statements are
in alignment with the relevant provisions of the UK Corporate Governance Code (the “Code”); and considering whether the statement is
consistent with the consolidated financial statements and our knowledge and understanding of the group and its environment obtained in
the course of the audit.

In addition, based on the work undertaken as part of our audit, we have concluded that each of the following elements of the corporate
governance statement is materially consistent with the consolidated financial statements and our knowledge obtained during the audit:

•

The directors’ statement that they consider the Annual Report, taken as a whole, is fair, balanced and understandable, and provides the
information necessary for the members to assess the group’s position, performance, business model and strategy;

The section of the Annual Report that describes the review of effectiveness of risk management and internal control systems; and

The section of the Annual Report describing the work of the Audit and Risk Committee.

We have nothing to report in respect of our responsibility to report when the directors’ statement relating to the company’s compliance
with the Code does not properly disclose a departure from a relevant provision of the Code specified under the Listing Rules for review by
the auditors.

Other Matter

In due course, as required by the Financial Conduct Authority Disclosure Guidance and Transparency Rule 4.1.14R, these consolidated
financial statements will form part of the ESEF-prepared annual financial report filed on the National Storage Mechanism of the Financial
Conduct Authority in accordance with the ESEF Regulatory Technical Standard (“ESEF RTS”). This auditor’s report provides no assurance
over whether the annual financial report will be prepared using the single electronic format specified in the ESEF RTS.

LISA McCLURE
for and on behalf of
PricewaterhouseCoopers CI LLP
Chartered Accountants and Recognized Auditor
Jersey, Channel Islands
20 December 2023

JERSEY ELECTRICITY Annual Report and Accounts 202395

STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

Consolidated Income Statement for the year ended 30 September 2023

Revenue

Cost of sales

Rebate of past energy costs – non recurring item

Gross profit

Movement in valuation of investment properties

Operating expenses

Group operating profit

Finance income

Finance costs

Profit from operations before taxation

Taxation

Profit from operations after taxation

Attributable to:

Owners of the Company

Non-controlling interests

Earnings per share

- basic and diluted

Note

2023
£000

125,078

(80,924)

3,593

47,747

(1,215)

(32,010)

14,522

1,871

(1,528)

14,865

(3,432)

11,433

11,280

153

11,433

2022
£000

117,421

(77,242)

40,179

1,020

(29,293)

11,906

218

(1,523)

10,601

(2,135)

8,466

8,326

140

8,466

36.81p

27.17p

Consolidated Statement of Comprehensive Income for the year ended 30 September 2023

Profit for the year

Items that will not be reclassified subsequently to profit or loss:

Actuarial (loss)/gain on defined benefit scheme

Income tax relating to items not reclassified

Items that may be reclassified subsequently to profit or loss:

Fair value (loss)/gain on cash flow hedges

Income tax relating to items that may be reclassified

Note

2023
£000

11,433

(815)

163

(652)

(3,361)

672

(2,689)

2022
£000

8,466

8,976

(1,795)

7,181

4,815

(963)

3,852

Total comprehensive income for the year

8,092

19,499

Attributable to:

Owners of the Company

Non-controlling interests

All results in the year have been derived from continuing operations.

7,939

153

8,092

19,359

140

19,499

The notes on pages 105 to 134 form an integral part of these accounts. The independent auditor’s report is on pages 96 to 100.

JERSEY ELECTRICITY Annual Report and Accounts 2023

STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

Consolidated Balance Sheet as at 30 September 2023

Non-current assets

Intangible assets

Property, plant and equipment

Right of use assets

Investment properties

Trade and other receivables

Retirement benefit asset

Derivative financial instruments

Other investments

Total non-current assets

Current assets

Inventories

Trade and other receivables

Derivative financial instruments

Cash and cash equivalents

Total current assets

Total assets

Liabilities

Trade and other payables

Current tax liabilities

Lease liabilities

Derivative financial instruments

Total current liabilities

Net current assets

Non-current liabilities

Trade and other payables

Lease liabilities

Derivative financial instruments

Financial liabilities - preference shares

Borrowings

Deferred tax liabilities

Total non-current liabilities

Total liabilities

Net assets

Equity

Share capital

Revaluation reserve

ESOP reserve

Other reserves

Retained earnings

Equity attributable to the owners of the Company

Non-controlling interests

Total equity

Approved by the Board on 20 December 2023

P. J. AUSTIN

Director

L. G. FULTON

Director

Note

21(ii)

2023
£000

681

216,136

3,194

27,615

300

25,546

129

2022
£000

967

216,235

3,280

28,830

300

26,434

2,640

273,606

278,691

9,187

25,959

47,429

82,639

356,245

19,459

3,301

536

23,377

59,262

26,249

3,193

225

235

30,000

31,422

91,324

114,701

241,544

1,532

5,270

(35)

(455)

235,100

241,412

132

241,544

7,173

19,934

483

47,397

74,987

353,678

21,043

2,088

330

23,530

51,457

25,162

3,251

235

30,000

32,126

90,774

114,304

239,374

1,532

5,270

(38)

2,234

230,232

239,230

144

239,374

JERSEY ELECTRICITY Annual Report and Accounts 2023The notes on pages 105 to 134 form an integral part of these accounts. The independent auditor’s report is on pages 96 to 100.

STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

Consolidated Statement of Changes in Equity for the year ended 30 September 2023

Note

Share Revaluation
reserve

capital

ESOP
reserve

Other
reserves*

Retained
earnings

Total

At 1 October 2022

Total recognised income and expense for the year

Amortisation of employee share option scheme

Movement on hedges (net of tax)

Actuarial loss on defined benefit scheme (net of tax)

Equity dividends

At 30 September 2023

At 1 October 2021

Total recognised income and expense for the year

Amortisation of employee share option scheme

Movement on hedges (net of tax)

Actuarial gain on defined benefit scheme (net of tax)

Equity dividends

At 30 September 2022

*’Other reserves’ represents the foreign currency hedging reserve.

£000

1,532

5,270

1,532

5,270

£000

(38)

(35)

(79)

£000

2,234

230,232

(2,689)

(455)

11,280

(652)

(5,760)

235,100

239,230

11,280

(2,689)

(652)

(5,760)

241,412

(1,618)

220,178

225,283

3,852

8,326

7,181

(5,453)

8,326

3,852

7,181

(5,453)

239,230

1,532

5,270

(38)

2,234

230,232

JERSEY ELECTRICITY Annual Report and Accounts 2023The notes on pages 105 to 134 form an integral part of these accounts. The independent auditor’s report is on pages 96 to 100.

STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

Consolidated Statement of Cash Flows for the year ended 30 September 2023

IAS 7 ‘Statement of Cash Flows’ requires the explanation of both cash and non-cash movements in assets and liabilities relating to financing activities. See notes 7 and 15.

Of the £47.5m cash and cash equivalents at 30 September 2023, £40.0m (2022: £40.0m) is on fixed term deposits with an average of 70 days remaining (2022: 49 days).

The notes on pages 105 to 134 form an integral part of these accounts. The independent auditor’s report is on pages 96 to 100.

JERSEY ELECTRICITY Annual Report and Accounts 2023 2023 2022 £000 £000Cash flows from operating activitiesOperating profit 14,522 11,906Depreciation and amortisation charges 11,581 11,094Share-based reward charges 3 41Loss/(gain) on revaluation of investment property 1,215 (1,020)Pension operating charge less contributions paid 73 1,303Deemed interest income from hire purchase arrangements 183 50Profit on sale of property, plant and equipment (3) (7)Operating cash flows before movement in working capital 27,574 23,367Working capital adjustments: Increase in inventories (2,014) (257) Increase in trade and other receivables (3,835) (1,926) (Decrease)/Increase in trade and other payables (617) 4,444Net movement in working capital (6,466) 2,261Interest paid on borrowings (1,368) (1,380)Preference dividends paid (9) (9)Income taxes paid (2,089) (3,020)Net cash flows from operating activities 17,642 21,219Cash flows from investing activitiesPurchase of property, plant and equipment (13,046) (11,001)Investment in intangible assets (92) (319)Deposit interest received 1,688 168Net proceeds from disposal of fixed assets 3 7Net cash flows used in investing activities (11,447) (11,145)Cash flows from financing activitiesEquity dividends paid (5,760) (5,453)Dividends paid to non-controlling interest (165) (154)Repayment of lease liabilities (242) (206)Net cash flows used in financing activities (6,167) (5,813)Net increase in cash and cash equivalents 28 4,261Cash and cash equivalents at the beginning of the year 47,397 43,136Effect of foreign exchange rate changes 4 -Cash and cash equivalents at the end of the year 47,429 47,39799

STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

Notes to the Consolidated Statements for the year ended 30 September 2023

1 Accounting Policies

Basis of preparation

The Group’s accounting policies as applied for the year ended 30 September 2023 are based on all International Financial Reporting
Standards (IFRS) issued by the International Accounting Standards Board (IASB) which have been adopted by the EU, including
International Accounting Standards (IAS) and interpretations issued by the International Financial Reporting Interpretations
Committee (IFRIC). The principal accounting policies which have been applied consistently are:

Basis of accounting

The consolidated financial statements have been prepared under the historic cost convention as modified by the revaluation of
investment properties and derivative financial instruments.

Basis of consolidation

The Group’s consolidated financial information for the year ended 30 September 2023 comprises the Company and its subsidiaries.

The Company’s subsidiaries are the entities over which the Company has control. Control is determined by the Company’s power over
the investee, its exposure, or rights, to variable returns and its ability to use its power over the investee to affect the amount of the
returns to the Company.

Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the Group’s equity therein. Non-
controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling
interest’s share of changes in equity since the date of the combination.

The consolidated financial information includes the Group’s share of the post-tax results and net assets under IFRS of the jointly
controlled entities using the equity method of accounting. Equity accounting is a method of accounting by which an equity investment
is initially recorded at cost and subsequently adjusted to reflect the investor’s share of the net profit or loss of the investee. Jointly
controlled entities are those entities over which the Group has joint control with one or more other parties and over which there must
be unanimous consent by all parties to the strategic, financial, and operating decisions.

Under Article 105 (11) of the Companies (Jersey) Law 1991 (“the Law”), the Directors of a holding company need not prepare separate

financial statements if consolidated accounts for the Company are prepared, unless required to do so by the members of the Company
by ordinary resolution. The members of the Company had not passed a resolution requiring separate financial statements and, in the
opinion of the Directors, the Company meets the definition of a holding company as set out in the Law. As permitted by the Law, the
Directors have elected not to prepare separate financial statements.

Going Concern

The Group’s business activities, together with the factors likely to affect its future development, performance and position are set
out in the Chairman’s Statement (see page 6). The financial position of the Group, its cash flow and its liquidity position are described
in the Financial Review (see page 52). In addition, note 21 to the financial statements includes the Group’s objectives, policies, and
processes for managing its capital; its financial risk management objectives; details of its financial instruments and hedging activities;
and its exposures to risks. The Group has sufficient financial resources together with many customers both corporate and individual.
Therefore, the Directors believe that the Group is well placed to manage its business risks successfully. The Directors have a reasonable
expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. For this reason,
they continue to adopt the going concern basis in preparing the financial statements and in making the viability statement on pages
54 and 80.

Foreign currencies

The functional and presentational currency of the Company is Pounds sterling. Transactions in currencies other than sterling are
recorded at the rates of exchange prevailing on the dates of the transactions. At each balance sheet date, monetary assets and
liabilities that are denominated in foreign currencies are translated at the rates prevailing on the balance sheet date. Non-monetary
items carried at fair value that are denominated in foreign currencies are translated at the rates prevailing at the date when the fair
value was determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated.
Gains and losses arising on translation are included in net profit or loss for the year.

Revenue

The Group recognises revenue from the following services:

i) Energy sales

Energy sales revenue is recognised on the basis of energy sold to customers during the period as well as fixed daily charges.
Revenue for energy sales is therefore accounted “over time” and may include an estimated assessment of energy supplied to
customers where there is a difference between the date of the last meter communication and the balance sheet date, using
historical consumption patterns.

Service connections revenue is derived from the provision of a connection to an existing mains cable, laying required infrastructure
to the boundary of a customer’s property and connecting to their domestic supply. Management considers that the combination of
these activities comprise a distinct performance obligation to the customer. Service connection income is recognised at the point in
time that the service is complete.

JERSEY ELECTRICITY Annual Report and Accounts 2023

100

STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

1 Accounting Policies (continued)

Revenue (continued)

Capital contributions arise where a property developer is charged for the provision of a first-time supply to the property/properties.
These charges cover the immediate infrastructure requirements as well as future investment needed to meet the additional demands
placed on existing network infrastructure from new connections. Management considers that the obligation to invest in the network
is highly interrelated with the ongoing and future obligation to provide electricity supply services, particularly to maintain continuous
supplies into the future. The investment in the network from the infrastructure charges enables the Group to continue providing
value to the customer through the supply of electricity. The associated asset arises from the investment in the network and therefore
the Group recognises infrastructure income through revenue on a straight-line basis over the life of the associated asset. Capital
contributions are initially recorded within deferred income and recognised over the life of the investment to which they relate.

ii) Retail

Revenue resulting from the sales of goods within our retail business is recognised on sale to the customer at that point in time,
as this is the point at which the Company recognises the transfer of risks and rewards. Retail additionally sells service contracts
to customers where the obligations to the customer are recognised as revenue on a monthly basis for the duration of the service
contract.

iii) Building Services

Revenue within JEBS, our contracting and building services business, is recognised as the service is provided. JEBS recognises the
revenue over time driven by the stage of completion for each contract, which is usually assessed by reference to costs incurred
over the same period.

iv) Property

Rental income is accrued monthly over the term of the rental agreement.

v) Other

IRU

Indefeasible rights of use (IRU) sales are recognised as the service is provided over the term of the contract.

Through Jersey Electricity’s interest in submarine cables, the Group has the ability to sell dark fibre to telecom network operators
seeking to extend their own networks through IRU agreements. Income from IRUs where an IRU agreement does not transfer
substantially all the risks and benefits of ownership to the buyer or is deemed not to extend for substantially all of the assets’
expected useful lives, is recognised on a straight-line basis over the life of the agreement. Where agreements extend for
substantially all the assets’ expected useful lives and transfer substantially all the risks and benefits of ownership to the buyer, the
resulting profit/ (loss) is recognised in the consolidated income statement as a gain/(loss) on disposal of fixed assets.

Jendev

Revenue from Jendev arises from ongoing support contracts and implementation and development contracts. Revenue from
ongoing support contracts are recognised on a straight-line basis over the term of the contract. Revenue from implementation
and development contracts is recognised based on the stage of completion for each contract driven by the cost of work performed.

Jersey Deep Freeze

Jersey Deep Freeze is a 51% (2021: 51%) controlled subsidiary. Revenues are derived from the provision of goods and service
contracts. Revenue from the provision of goods is recognised at point of delivery to the customer. Revenue from service contracts
is recognised on a straight-line basis over the term of the contract.

vi) Interest free financing

Both retail customers and those wishing to fuel switch to electric heating can qualify for interest free credit terms. Where financing
is provided, repayment terms are typically up to five years. As such a deemed interest charge is calculated on an annual basis and
offset against revenue

Taxation

The tax expense represents the sum of tax currently payable and deferred tax. The tax currently payable is based on taxable profit for
the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that
are taxable or deductible in other years and it further excludes items that are not taxable or deductible.

Deferred tax is the tax expected to be payable or recoverable on the difference between the carrying amounts of assets and liabilities
in the balance sheet and the corresponding tax bases used in the computation of taxable profits. Deferred tax is accounted for using
the balance sheet liability method. Deferred tax liabilities are recognised for all taxable temporary differences and deferred tax
assets are recognised to the extent that it is probable that future taxable profit will be available against which deductible temporary
differences can be utilised.

Deferred tax is calculated at the tax rates that are expected to apply in the period in which the liability is settled or the asset is realised,
on a non-discounted basis, and is recorded in the income statement, except where it relates to items recorded to equity via other
comprehensive income, in which case the deferred tax is also dealt with in that statement.

JERSEY ELECTRICITY Annual Report and Accounts 2023

101

STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

1 Accounting Policies (continued)

Intangible assets

The costs of acquired computer software are capitalised based on the costs incurred to acquire and bring to use the specific software
and are amortised over their useful lives. Costs directly associated with the development of computer software programmes that
will generate economic benefits over a period in excess of one year are capitalised and amortised over their estimated useful lives.
Costs include employee costs relating to software development and an appropriate proportion of directly attributable overheads.
Amortisation is charged on a straight-line basis over its expected useful life which is estimated to be up to four years.

Property, plant and equipment

In accordance with IAS 16 costs are capitalised where it is probable that future economic benefits associated with the asset being
purchased or constructed will flow to the entity; and the cost of the asset can be measured reliably.

For assets under construction, all costs incurred which are directly attributable to bringing the asset to a point of use, including direct
materials and direct labour costs are capitalised as incurred.

Property, plant and equipment (“PPE”) excludes investment property and is stated at cost less accumulated depreciation and
impairment losses, if any. Assets are depreciated on the straight-line method to their expected residual values over their estimated
useful lives from the financial year following acquisition. Property, plant and equipment include capitalised employee, interest
and other costs that are directly attributable to construction of these assets. Property, plant and equipment under the course of
construction is not depreciated and is carried at cost less impairment.

Owner-occupied property is classified within PPE.

Depreciation is charged as follows:

up to 50 years
Buildings
Interlinks
up to 30 years
Plant, mains cables and services up to 60 years
up to 15 years
Fixtures and fittings
Up to 4 years
Computer equipment
Up to 10 years
Vehicles

The gain or loss arising on the disposal or retirement of an asset is determined as the difference between the sales proceeds and the
carrying amount of the asset and is recognised in the consolidated income statement.

Customer contributions in respect of additions to plant are treated as deferred income within trade and other payables which is

classified as non-current liabilities and released to the income statement over the estimated operational lives of the related assets.

Right of use assets

Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any
remeasurement of lease liabilities. The cost of right of use assets includes the amount of lease liabilities recognised, initial direct costs
incurred, and lease payments made at or before the commencement date less any lease incentives received. Where a modification
to a lease agreement decreases the scope of the lease, the carrying amount of the right of use asset is adjusted and a gain or loss
is recognised in proportion to the decrease in scope of the lease. All other modifications to lease agreements are accounted for as a
reassessment of the lease liability with a corresponding adjustment to the right of use asset.

Impairment of property, plant, equipment and intangible assets

At the end of each reporting period, the Group reviews the carrying amounts of its PPE and intangible assets to determine whether

there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the
asset is estimated in order to determine the extent of the impairment loss (if any). When it is not possible to estimate the recoverable
amount of an individual asset, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs.
When a reasonable and consistent basis of allocation can be identified, assets are also allocated to individual cash-generating units, or
otherwise they are allocated to the smallest group of cash-generating units for which a reasonable and consistent allocation basis can
be identified.

Recoverable amount is the higher of fair value less costs of disposal and value in use. In assessing value in use, the estimated future
cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time
value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of
the asset (or cash-generating unit) is reduced to its recoverable amount.

Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised
estimate of its recoverable amount, so that the increased carrying amount does not exceed the carrying amount that would have been
determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment
loss is recognised immediately in the consolidated income statement, unless the relevant asset is carried at a revalued amount, in
which case the reversal of the impairment loss is stated as a revaluation increase.

JERSEY ELECTRICITY Annual Report and Accounts 2023

102

STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

1 Accounting Policies (continued)

Investment properties

Investment properties are stated at fair value at the balance sheet date. Gains or losses arising from changes in the fair value of
investment properties are included in the consolidated income statement for the period in which they arise. The Group’s policy on
freehold properties is to classify it as an investment property both when the property is held for capital appreciation or rental purposes
and when it is fully occupied by external tenants.

Investment in joint arrangement

The results, assets and liabilities of the joint arrangement are incorporated using the equity method. Investment in the joint
arrangement is therefore carried in the consolidated balance sheet at cost as adjusted by changes in the Group’s share of net assets,
less any impairment.

Inventories

Inventories are stated at the lower of cost and net realisable value. Cost comprises direct materials and, where applicable, direct labour
and overheads that have been incurred in bringing the inventories to their location and condition at year end. Cost is calculated using
the weighted average method. Net realisable value represents the estimated selling price.

Financial instruments

Cash and cash equivalents

Cash and cash equivalents comprise cash and short-term deposits with an original maturity of three months or less.

Short-term investments

Short-term investments comprise cash deposits which are readily convertible to a known amount of cash, subject to an insignificant
risk of change in value.

Trade and other receivables

Trade receivables are initially recognised at invoice value which is deemed to be fair value and do not carry any interest and are
reduced by appropriate allowances for estimated irrecoverable amounts.

The Group applies the IFRS 9 simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance
for all trade receivables. The Group’s assessment for calculating expected credit losses is made by reference to its historical collection
experience, including comparisons of the relative age of the individual balance and the consideration of the actual write-off history.
The provisioning rates applied in the calculation are reviewed on an annual basis to reflect the latest historical collection performance
data and management’s expectation of future performance and industry trends. Furthermore, where the Group has assessed a known
risk of recoverability relating to known customers these balances are provided for in full.

Trade and other payables

Trade and other payables are initially recognised at invoice value which is deemed to be fair value and are not interest bearing and are
subsequently stated at their amortised cost. Amortised cost is considered by the Directors to be equivalent to invoiced value.

Borrowings

Borrowings are measured at amortised cost using the effective interest method. Interest expense is recognised by applying the
effective interest rate.

Derivative financial instruments

Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to
their fair value at each balance sheet date. Changes in the fair value of derivative financial instruments which are designated as highly
effective hedges of future cash flows are recognised directly in other comprehensive income and any ineffective portion is recognised
immediately in the consolidated income statement. When hedges mature that do not result in the recognition of an asset or a liability,
amounts deferred in other comprehensive income are recognised in the consolidated income statement in the same period in which
the hedged item affects net profit or loss.

Changes in the fair value of derivative financial instruments that do not qualify for hedge accounting are recognised in the
consolidated income statement as they arise.

Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated or exercised, or no longer qualifies for
hedge accounting. Until that time, any cumulative gain or loss on the hedging instrument recognised in other comprehensive income
is kept in equity until the forecasted transaction occurs. If a hedged transaction is no longer expected to occur, the net cumulative gain
or loss that has been recognised in other comprehensive income is transferred to the consolidated income statement.

Following the adoption of IFRS 9 and as permitted by this standard, the Group has elected to continue to apply the hedge accounting
requirements of IAS 39. This policy choice will be periodically reviewed to consider any changes in our risk management activities.

JERSEY ELECTRICITY Annual Report and Accounts 2023

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STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

1 Accounting Policies (continued)

Financial instruments (continued)

Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that
necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such
time as the assets are substantially ready for their intended use or sale. Investment income earned on the temporary investment of
specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalisation. All
other borrowing costs are recognised in the consolidated income statement in the period in which they occurred.

Dividends

Dividends are recorded in the Group’s financial statements in the period in which they are approved by the Company’s shareholders.
Interim dividends are recorded in the period in which they are paid.

Share capital

Ordinary shares are classified as equity. Mandatorily redeemable preference shares are classified as liabilities. Incremental costs
directly attributable to the issue of new shares or options are shown as a deduction, net of tax, from the proceeds.

Provisions

Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, and where it is
probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate
can be made of the amount of the obligation. Provisions are reviewed at each balance sheet date and are adjusted to reflect the
current best estimate.

Retirement benefits

The Company provides pensions through both a defined contributions scheme and a defined benefit scheme. In the latter the cost of
providing benefits is determined using the projected unit credit method, with full actuarial valuations being carried out at a minimum
every three years. Actuarial gains and losses are recognised in full, directly in retained earnings in the period in which they occur and
are shown in the statement of comprehensive income. The net figure derived from the current service cost element of the pension
charge, the expected return on pension scheme assets and interest on pension scheme liabilities, including past service cost, is
deducted in arriving at operating profit. Retirement benefits recorded in the balance sheet represent the net financial position of the
Group’s defined benefit pension scheme.

Under the Scheme regulations, following settlement of the final obligation by the Trust, any remaining surplus held by the fund
would be passed back to the company.

Share-based payments

Equity-settled share-based payments to employees and others providing similar services are measured at fair value of the equity
instruments at the grant date. The fair value excludes the effect of non-market-based vesting conditions. Details regarding the
determination of the fair value of equity-settled share-based transactions are not separately disclosed due to their immaterial value.

The fair value determined at the grant date of the equity-settled share-based payments is expensed over the vesting period, based
on the Group’s estimate of equity instruments that will eventually vest. At each balance sheet date, the Group revises its estimate of
the number of equity instruments expected to vest because of the effect of non-market-based vesting conditions. The impact of the
revision of the original estimates, if any, is recognised in the income statement such that the cumulative expense reflects the revised
estimate, with a corresponding adjustment to equity reserves.

Accounting developments

In preparing these Consolidated Financial Statements, the Group has applied all relevant IFRS, IAS and Interpretations issued by the
IFRIC which have been adopted by the EU as of the date of approval of these Consolidated Financial Statements. The following new
accounting standards, amendments to existing accounting standards and/or interpretations of existing accounting standards are
mandatory for the current period and have been adopted by the Group. All other new standards, amendments to existing standards
and new interpretations that are mandatory for the current year have no bearing on the operating activities and disclosures of
the Group and consequently have not been listed. The Group has not adopted any new standards or interpretations that are not
mandatory.

New standards, amendments and interpretations effective or adopted by the Group

Amendments to IAS 16 ‘Property, Plant and Equipment: Proceeds Before Intended Use’ is effective from 1 January 2022 and was
endorsed by the UK Endorsement Board in April 2022. The standard has not had any impact on the financial reporting of the Group,
given the nature of the amendments and the usual course of business.

JERSEY ELECTRICITY Annual Report and Accounts 2023

104

STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

1 Accounting Policies (continued)

Financial instruments (continued)

New standards, amendments and interpretations issued, but not yet adopted by the Group

A number of standards, amendments and interpretations have been issued but not yet adopted by the Group within these financial
statements, because application is not yet mandatory or because UK adoption remains outstanding at the date the financial
statements were authorised for issue.

IFRS 17 ‘Insurance contracts’ is effective from 1 January 2023 (1 October 2023 for the Group). The Group’s initial expectation is that
adoption of this standard will not have a material impact on the Group’s consolidated financial statements.

Amendments to IAS 12 ‘Deferred Tax related to Assets and Liabilities arising from a Single Transaction’ is effective from 1 January 2023
(1 October 2023 for the Group). Adoption of the amendment is expected to result in a gross up of deferred tax assets and liabilities but
is not anticipated to have a material impact on the net deferred tax balances within the consolidated financial statements of the Group.

There are a number of other interpretations and amendments issued but not yet effective at 30 September 2023. These are not
anticipated to have a material impact on the Group’s consolidated financial statements.

2 Critical Accounting Judgements and key sources of estimation uncertainty

In the application of the Group’s accounting policies, which are described in note 1, the Directors are required to make judgements,
estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The
estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual
results may differ from these estimates.

The estimates and underlying assumptions are monitored on an ongoing basis. Changes to accounting estimates are recognised in the
period in which an estimate is revised if the modification affects only that period (or also in future periods if applicable).

Critical accounting judgements

The following are the critical judgements, that the Directors have made in the process of applying the Group’s accounting policies and
are considered to have a significant effect on the amounts recognised in financial statements.

i) Hedge accounting

The Group utilises currency derivatives to hedge a proportion of its future purchases of electricity from France which currently
extend to the next three calendar years. Judgement is applied in establishing the quantum of these future foreign exchange
commitments as the volume and price of imported electricity vary annually. All such currency derivatives are fair valued, based on
market values of equivalent instruments at the balance sheet date.

ii) Decommissioning

A judgement has been made that the Company does not meet the recognition criteria (set out in IAS 37 Provisions) as it does not
have any set obligation to decommission any of our material assets, but a risk exists that costs may be incurred in the future. The
assets concerned are our power station at La Collette, which is leasehold with a current end date of 2056, and our submarine
cables to France and Guernsey. None of the assets have a definitive planning or legal obligation to decommission at the end of
life but obligations could develop over time, for example, for environmental reasons. There are varying external opinions as to
whether subsea cables should be left in place, or removed, at the end of their useful life as over time the interconnector asset
becomes part of the marine infrastructure.

Key sources of estimation uncertainty

The key assumptions concerning the future, and other key sources of estimation and uncertainty at the reporting date that may have
a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are
disclosed below.

Retirement benefit obligations

The Group provides pensions through a defined benefits scheme for a number of its employees which is accounted for in accordance
with IAS 19 ‘Employee Benefits’. The benefit obligation is discounted at a rate set by reference to market yields at the end of the
reporting period on high quality corporate bonds. Significant judgement is required when setting the criteria for bonds to be included
in the population from which the yield curve is derived. The most significant criteria considered for the selection of bonds include the
issue size of the corporate bonds, quality of the bonds and the identification of outliers which are excluded. The discount rate used in
2023 was 5.4% and in 2022 was 5.2%.

JERSEY ELECTRICITY Annual Report and Accounts 2023

105

STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

3 Business Segments

The business segments below are those reported to the Directors for the purposes of resource allocation and performance
assessment:

JERSEY ELECTRICITY Annual Report and Accounts 2023 2023 2023 2023 2022 2022 2022 External Internal Total External Internal Total £000 £000 £000 £000 £000 £000RevenueEnergy – arising during the course of ordinary business 97,053 89 97,142 89,683 100 89,783 Building Services 3,349 831 4,180 3,365 780 4,145 Retail 18,514 56 18,570 18,695 41 18,736 Property 2,350 641 2,991 2,345 639 2,984 Other* 3,812 466 4,278 3,333 625 3,958 125,078 2,083 127,161 117,421 2,185 119,606 Intergroup elimination (2,083) (2,185) Revenue 125,078 117,421Operating profitEnergy profit before rebate of past energy costs** 9,329 7,502 Rebate of past energy costs 3,593 -Energy profit including rebate 12,922 7,502Building Services 162 266 Retail 917 1,174 Property 1,149 1,436 Other* 587 508 15,737 10,886 Revaluation of investment properties (1,215) 1,020 Operating profit 14,522 11,906 Finance income 1,871 218 Finance costs (1,528) (1,523) Profit from operations before taxation 14,865 10,601 Taxation (3,432) (2,135)Profit from operations after taxation 11,433 8,466 Attributable to: Owners of the Company 11,280 8,326 Non-controlling interests 153 140 11,433 8,466 *The Other segment includes the divisions of Jersey Energy and Jendev as well as Jersey Deep Freeze Limited, the Group’s sole subsidiary. Materially, all the Group’s operations are conducted within the Channel Islands. All transfers between divisions are on an arms‑length basis. Revaluation of investment properties is shown separately from Property operating profit. Revenues disclosed by the business segments above are recognised both on a point in time and over time basis. The treatment of revenue recognition in accordance with IFRS 15 is detailed for each of these business segments in note 1 to these financial statements.**During the year ended 30 September 2023, the Company received a credit which has been disclosed as ‘Rebate of past energy costs – non-recurring item’ within gross profit in these financial statements. This was a rebate from the French network operator (RTE) in respect of payments made in 2022 which they were instructed to return to us as part of a regulatory decision due to volatility in the energy marketplace during 2022. Due to the unknown timing, amount and eligibility regarding this reimbursement, it was not possible to disclose this rebate in relation to the prior year ending 30 September 2022.
106

STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

4 Directors and Employees

Detailed information in respect of Directors’ shareholdings and emoluments, pensions and benefits is given in the Remuneration
Committee Report. The number of persons (full time equivalents) employed by the Company (including non-Executive Directors)
at 30 September was as follows:

5 Group Operating Profit

Operating profit is after charging/(crediting):

JERSEY ELECTRICITY Annual Report and Accounts 2023 2023 2022 Number NumberEnergy 265 253Other businesses 92 92Trainees 17 18 374 363The aggregate payroll costs of these persons were as follows: 2023 2022 £000 £000Wages and salaries 21,317 20,144Social security costs 1,184 1,097Pension* 1,622 2,888 24,123 24,129Capitalised manpower costs** (1,772) (1,748) 22,351 22,381* The pension costs above relate to the defined benefit pension scheme note 16. The contributions recognised as an expense relating to the defined contribution scheme are included within wages and salaries and amount to £0.8m (2022: £0.7m).** Capitalised manpower costs are included in note 10 under categories ‘Mains cables and services’, ‘Fixtures, fittings, vehicles’ and ‘Interlinks’ 2023 2022 £000 £000 Fees payable to Group auditor Auditor’s remuneration for audit services 447 264Auditor’s remuneration for non-audit services - -Other operating chargesDepreciation of property, plant, equipment and right-of-use assets (note 10) 11,203 10,809Amortisation of intangible assets note 9 378 285Movement in expected credit losses 240 25
107

STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

6 Taxation

JERSEY ELECTRICITY Annual Report and Accounts 2023 2023 2022 £000 £000Current tax: Jersey Income Tax - ordinary activities 3,301 2,088Total current tax 3,301 2,088 Deferred tax:Current year 131 47Total tax on profit on ordinary activities 3,432 2,135The differences between the total tax charge shown above and the amount calculated by applying the standard rate of Jersey Income Tax to the profit before tax is as follows: 2023 2022 £000 £000Profit from ordinary activities before tax 14,865 10,601Tax on profit on ordinary activities at standard income tax rate of 20% (2021: 20%) 2,973 2,120Effects of:Expenses not deductible for tax purposes 343 42Income not taxable for tax purposes (197) (339)Non-qualifying depreciation 313 312Group current tax charge for year 3,432 2,135The following outlines the major deferred tax (assets)/liabilities recognised by the Group and Company:Group and Company 2023 2022 £000 £000Accelerated capital allowances 26,427 26,280 Derivative financial instruments (114) 559 Pensions 5,109 5,287 Provisions for deferred tax 31,422 32,126 Deferred tax movements in the year:Group and Company 2023 2022 £000 £000At 1 October 32,126 29,321 Charged to profit and loss account 131 47 (Credited)/charged to statement of comprehensive income (835) 2,758 At 30 September 31,422 32,126 The Company is taxed solely in Jersey as it has no legal presence in any other jurisdiction. The applicable rate of income tax for utility companies in Jersey is 20%. There are no current indications, political or otherwise, that these rates are expected to change in the foreseeable future. The effective tax rate on pre-tax profits is 23% (2022: 20%) due to the way capital allowances are applied in place of depreciation expenses which are included in the pre-tax profit figure. As the tax liability rests with the Government of Jersey, the right to offset assets and liabilities allows the balance sheet to show the net deferred tax liability position.There is no tax impact on the Group arising from the proposed dividend shown in note 7.108

STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

7 Dividends Paid and Proposed

Equity:

8 Earnings Per Ordinary Share

Earnings per Ordinary and ‘A’ Ordinary share (basic and diluted) of 36.81p (2022: 27.17p) are calculated on the Group profit, after
taxation, of £11,280,000 (2022: £8,326,000), and on the 30,640,000 (2022: 30,640,000) Ordinary and ‘A’ Ordinary shares in issue
during the financial year and at 30 September 2023. There are no share options in issue nor any impact arising from the vesting of
the employee share option scheme and therefore there is no difference between basic and diluted earnings per share.

JERSEY ELECTRICITY Annual Report and Accounts 2023 Per Share In Total 2023 2022 2023 2022 pence pence £000 £000Ordinary and ‘A’ Ordinary:Dividend paid final for previous year 10.80 10.20 3,309 3,125 interim for current year 8.00 7.60 2,451 2,328 18.80 17.80 5,760 5,453Dividend proposed final for current year 11.40 10.80 3,493 3,309The proposed dividend is subject to approval at the forthcoming AGM and has not been included as liabilities in these financial statements. These dividends are shown net of 20% tax.Dividends paid out to non-controlling interests in relation to Jersey Deep Freeze Limited are disclosed in note 18.

109

STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

9 Intangible Assets

JERSEY ELECTRICITY Annual Report and Accounts 2023 Computer Software £000CostCost as at 1 October 2022 2,740Additions 92Disposals (62)At 30 September 2023 2,770AmortisationAt 1 October 2022 1,773Charge for the year 378Disposals (62)At 30 September 2023 2,089Net book valueAt 30 September 2023 681 Computer Software £000CostCost as at 1 October 2021 2,421Additions 319At 30 September 2022 2,740AmortisationAt 1 October 2021 1,488Charge for the year 285At 30 September 2022 1,773Net book valueAt 30 September 2022 967The above amortisation charges are included within operating expenses in the consolidated income statement.The gross carrying amount of intangible assets with a net book value of zero at 30 September 2023 was £1.5m (2022: £1.3m). The average remaining useful life of intangible assets is 3 years.110

STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

10 Property, plant, equipment, right of use assets and investment properties

JERSEY ELECTRICITY Annual Report and Accounts 2023 Freehold Mains Fixtures, Land Cables Fittings Right and Leasehold and and of Use Investment Buildings Buildings Plant Services Vehicles Interlinks Total Assets Properties £000 £000 £000 £000 £000 £000 £000 £000 £000Cost or valuationAt 1 October 2022 37,610 18,022 118,934 106,047 24,081 98,220 402,914 3,610 28,830Expenditure/lease additions 406 111 2,960 5,356 2,075 68 10,976 - -Revaluation - - - - - - - 45 (1,215)Disposals - (3) (575) - (764) - (1,342) - -At 30 September 2023 38,016 18,130 121,319 111,403 25,392 98,288 412,548 3,655 27,615Depreciation At 1 October 2022 12,615 8,462 74,557 37,225 14,245 39,575 186,679 330 -Charge for the year 754 419 3,215 1,564 2,004 3,116 11,072 131 -Disposals - (3) (575) - (761) - (1,339) - -At 30 September 2023 13,369 8,878 77,197 38,789 15,488 42,691 196,412 461 - Net book value at30 September 2023 24,647 9,252 44,122 72,614 9,904 55,597 216,136 3,194 27,615 Freehold Mains Fixtures, Land Cables Fittings Right and Leasehold and and of Use Investment Buildings Buildings Plant Services Vehicles Interlinks Total Assets Properties £000 £000 £000 £000 £000 £000 £000 £000 £000Cost or valuationAt 1 October 2021 37,166 17,373 115,789 101,639 22,987 98,182 393,136 3,326 27,810Expenditure/lease additions 515 281 3,513 4,408 1,628 38 10,383 344 -Revaluation - - - - - - - (60) 1,020Reclassification - 368 (368) - - - - - -Disposals (71) - - - (534) - (605) - -At 30 September 2022 37,610 18,022 118,934 106,047 24,081 98,220 402,914 3,610 28,830DepreciationAt 1 October 2021 11,909 8,016 71,645 35,729 12,824 36,463 176,586 213 -Charge for the year 777 405 2,953 1,496 1,949 3,112 10,692 117 -Reclassification - 41 (41) - - - - - -Disposals (71) - - - (528) - (599) - -At 30 September 2022 12,615 8,462 74,557 37,225 14,245 39,575 186,679 330 -Net book value at30 September 2022 24,995 9,560 44,377 68,822 9,836 58,645 216,235 3,280 28,830111

STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

10 Property, plant, equipment, right of use assets and investment properties (continued)

Property, plant and Equipment

Depreciation is included in operating costs in the consolidated income statement. No depreciation is charged on freehold land.

The gross carrying amount of property, plant and equipment still in use with a net book value of zero at 30 September 2023 was
£62.8m (2022: £61.3m).

Right of Use assets

The Group leases land and buildings as part of its Energy business, classified as of right of use assets. In addition to the depreciation
expense relating to right of use assets of £131k (2022: £117k), the finance costs included in the consolidated income statement arising
from the lease liability was £151k (2022: £134k). The maturity analysis of lease liabilities is presented in note 15.

Investment properties

Investment properties are made up of a portfolio of commercial and residential properties.

Two commercial leases are held with B&Q and The Medical Centre. The B&Q lease is a fully-repairing lease with a 48-year term from
May 2000 and a tenant-only break option, which in March 2021 deferred to May 2038. The Medical Centre lease is an internal repairing
lease with a 30-year term from May 2005 and two remaining break options at 20 and 25 year anniversaries. The Company is obliged to
keep the Medical Centre wind, watertight and structurally sound, whilst no obligations exist to the Company with regards to the B&Q
lease which is fully repairing.

The residential properties comprise 29 units which are let out on licences or leases with terms no greater than one year.

The investment properties were valued as at 30 September 2023 by independent professionally qualified valuers who hold a
recognised relevant professional qualification and are based in Jersey with knowledge of the local market. The properties are held for
investment purposes, primarily in freehold ownership and thus the valuation is of the freehold interests based on market value, in
accordance with the latest edition of the Royal Institution of Chartered Surveyors (RICS) Valuation – Global Standards, January 2022 (the
“Red Book”). Market value is defined in the Red Book as “The estimated amount for which an asset or liability should exchange on the
valuation date between a willing buyer and a willing seller in an arm’s length transaction after proper marketing and where the parties
had each acted knowledgeably, prudently and without compulsion. At each financial year-end the finance department verifies major
inputs to the independent valuation report, assesses property valuation movements and holds discussions with the independent
valuer.

Commercial properties have been valued on the basis of an equivalent yield of 6.25% for the B&Q site and 9.0% for the medical centre
before deductions for acquisition costs. Therefore, these are understood to be level 3 fair value. If yields were 50 basis points higher,
the valuation of commercial properties would increase by £1.1m. If yields were 50 basis points lower, the valuation of commercial
properties would decrease by £1.2m.

The movements in level 3 fair values are as follows:

Movement in valuation of Commercial Properties

At 1 October
Revaluation
At 30 September

2023
£000

15,770
(1,150)
14,620

2022
£000

15,850
(80)
15,770

In the case of residential properties, the valuation is based on market value assuming vacant possession. The valuation is based on
the comparable method, by reference to recent local market transactions of similar properties and is therefore deemed to be of level 2
fair value.

The rental income arising from the properties during the year was £1,428k (2022: £1,456k) with maintenance and repair costs of
£331k (2022: £203k). Under the terms of the lease arrangements with residential tenants, the Company is obliged to keep the rented
premises in a good state of condition and repair.

In accordance with IAS40 investment properties are not depreciated. The minimum lease payments receivable are detailed in note 21.

JERSEY ELECTRICITY Annual Report and Accounts 2023

112

STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

11 Other Investments

Principal group investments

The Company has investments in the following subsidiary undertakings and joint arrangement which principally affected the profits
or net assets of the Group.

12 Inventories

The amounts attributed to the different categories within inventories are as follows: :

JERSEY ELECTRICITY Annual Report and Accounts 2023 2023 2022 £000 £000Joint arrangement 5 5 Country of incorporation or principal business Principal Financial address activity Shareholding % Holding Year EndJoint arrangement:Channel Islands Electricity Grid Limited Jersey Administration of cable 5,000 Ordinary 50 30 November links between France, Jersey and GuernseySubsidiary undertaking: Jersey Deep Freeze Limited Jersey Sale and maintenance 51 Ordinary 51 30 September of refrigeration and catering equipment Jersey Offshore Wind Limited Jersey Investment in offshore 2 Ordinary 100 30 September wind (electricity generation) projects Channel Islands Electricity Grid Limited (CIEG)CIEG is a 50%/50% joint venture between Jersey Electricity Plc and Guernsey Electricity Limited. The principal activity of the business is to administer the ongoing operations of the cable links between France, Jersey and Guernsey. The Company’s interest in CIEG is accounted for as a joint arrangement under IFRS 11 ‘Joint arrangements’.Jersey Deep Freeze Limited The Company owns 51% (2021: 51%) of the issued ordinary share capital of Jersey Deep Freeze Limited, a Jersey company whose principal business is the sale and maintenance of refrigeration equipment to commercial businesses.The results are consolidated into these Group financial statements, as the Group is considered to exert control under IFRS 10. Jersey Offshore Wind Limited This wholly owned subsidiary was incorporated on 29th March 2023. The entity was set up in support to JE’s exploration of offshore wind. 2023 2022 £000 £000Fuel oil 3,932 1,887Commercial stocks and work in progress 3,811 4,068 Generation, distribution spares and sundry 1,444 1,218 9,187 7,173 During the year £15.1m (2022: £15.1m) was recognised directly in cost of sales in respect of inventories sold or used in operations or production.
113

STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

13 Trade and Other Receivables

14 Trade and Other Payables

JERSEY ELECTRICITY Annual Report and Accounts 2023 2023 2022 £000 £000Amounts receivable within one year:Trade receivables 21,036 17,436 Prepayments and other receivables 4,923 2,498 25,959 19,934Amounts receivable after more than one year: Secured loan accounts 300 300 Unbilled revenues included within trade and other receivables in the balance sheet at 30 September 2023 amounted to £6.1m (2022: £6.1m).The secured loans include a loan to a Director.The fair value of trade and other receivables is considered by the Directors to be equivalent to its carrying value. 2023 2022 £000 £000Amounts falling due within one year:Trade payables 518 2,202 Other payables including taxation and social security 10,316 10,203 Accruals 7,796 8,132 Deferred revenue 829 506 19,459 21,043Amounts falling due after more than one year: Accruals 89 102 Deferred revenue 26,160 25,060 26,249 25,162 The fair value of trade and other payables is considered by the Directors to be equivalent to its carrying value.114

STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

15 Borrowings

JERSEY ELECTRICITY Annual Report and Accounts 2023Unsecured borrowing at amortised cost 2023 2022 £000 £000Loan obtained from private placement 30,000 30,000 A long-term loan of £30m was drawn down on 17 July 2014 via a private placement and is in place with Pricoa Capital Group (an affiliate of Prudential Financial, Inc). The loan consists of two tranches: a. £15m for 20 years at a fixed rate coupon of 4.41% b. £15m for 25 years at a fixed rate coupon of 4.52%The terms of the loan contain financial covenants which require a net debt to regulated asset value ratio of less than 50% and an EBITDA to borrowings cost ratio greater than 4%, as defined in the loan agreement. The calculations are carried out based on the Group’s interim and annual performance and position. The Group continues to meet these covenants.In addition, borrowings are supplemented by an unsecured five year £10m revolving credit facility (RCF) with the Royal Bank of Scotland International Limited (RBSI) which provides flexibility to the Group when the timing of future planned capital expenditure is variable. The facility is due to expire in July 2024. This facility bears the same financial covenant restrictions as the private placement above. A one year £2m overdraft facility also exists with RBSI. Neither of the credit facilities were drawn at 30 September 2023.The fair value of the loan obtained from the private placement at 30 September 2023 is considered to be £24.5m (2022: £25.9m) based on the interest rate offered by UK 15 and 20 year bonds as a proxy to the risk free rate at this date coupled with the deemed credit risk margin included within the overall rate at the inception of the loan. The loan is classified as level 2 in the fair value hierarchy.Lease liabilities 2023 2022 £000 £000At 1 October 3,320 3,107 Additions during the year 45 285 Unwind of discount 151 134 Repayment in the year (242) (206) 3,274 3,320As at 30 September: – Current 81 69 – Non-current 3,193 3,251 3,274 3,320 Right of use assets recognised under lease arrangements are detailed within note 10.The maturity of future lease liabilities are as follows: 2023 2022 £000 £000Payable within one year 227 228 After one year but within five years 908 871 After five years but within ten years 1,094 1,089After ten years 4,980 5,718 7,209 7,906 Less: future finance charge (3,935) (4,586) Present value of lease obligations 3,274 3,320 115

STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

16 Pensions

Introduction

The Company sponsors a funded defined benefit pension scheme for qualifying Jersey employees – the Jersey Electricity Pension
Scheme. The Scheme is administered by a separate board of Trustees, which is legally separate from the Company. The Trustees are
composed of representatives of both the employer and employees. The Trustees are required by law to act in the interest of all relevant
beneficiaries and are responsible for the investment policy for the assets and the day-to-day administration of the benefits.

Under the Scheme, employees are entitled to annual pensions on retirement at age 65 of one-sixtieth or one eightieth (depending
on the category of membership) of the final pensionable salary for each year of service. Pensionable salary is defined as the
best successive 12 months’ salary in the past three years. Benefits are also payable on death and following other events such as
withdrawing from active service. No other post-retirement benefits are provided to these employees.

Profile of the Scheme

The Defined Benefit Obligation (DBO) includes benefits for current employees, former employees and current pensioners. Broadly,
about 38% of the DBO is attributable to current employees, 8% to deferred pensioners and 54% to current pensioners. The Scheme
duration is an indicator of the weighted-average time until benefit payments are made. For the Scheme as a whole, the duration is
around 15 years at 30 September 2023 reflecting the approximate split of the defined benefit obligation.

Funding requirements

The last funding valuation of the Scheme was carried out by a qualified actuary at 31 December 2021 and showed a surplus of £17.1m.
The Company has agreed to pay contributions of 20.6% (26.6% for non-contributory members) of pensionable salaries in respect of
current accrual, with contributory members paying a further 6% of pensionable salaries. The next funding valuation is due no later
than 31 December 2024.

Risks associated with the scheme

The Scheme exposes the Company to some risks, the most significant of which are:

Asset volatility

The DBO is calculated using a discount rate set with reference to corporate bond yields. If assets underperform this yield, this will
create a deficit.

The Scheme holds a significant proportion of growth assets (such as equities) which, though expected to outperform corporate
bonds in the long-term, create volatility and risk in the short-term. The allocation to growth assets is monitored to ensure it
remains appropriate given the Scheme’s long-term objectives.

Changes in bond yields

A decrease in corporate bond yields will increase the value placed on the Scheme’s DBO for accounting purposes, although this will
be partially offset by an increase in the value of the Scheme’s bond holdings.

Inflation risk

A portion of the Scheme’s DBO is linked to inflation, and higher inflation leads to a higher DBO. Most of the assets are either
unaffected by or only loosely correlated with inflation, meaning that an increase in inflation may also increase the deficit.

Life expectancy

Most of the Scheme’s obligations are to provide benefits for the lifetime of the member, so increases in life expectancy will result in
an increase in the DBO.

Risk management

The Company and Trustees have agreed a long-term strategy for reducing investment risk as and when appropriate. This includes
an asset-liability matching policy which aims to reduce the volatility of the funding level of the Scheme by investing in assets which
perform in line with the liabilities of the Scheme.

JERSEY ELECTRICITY Annual Report and Accounts 2023Asset class Target weightingGrowth portfolio 69% Global Equities 26% Hedge Funds 30% Multi Asset Credit 13%Matching portfolio 31% Liability Driven Investment (“LDI”) 31%Total 100%

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STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

16 Pensions (continued)

Risk management continued

Within the growth portfolio, Global Equities is expected to outperform the liabilities over the long term. The equity allocation
is allocated equally across three active global equity managers with contrasting investment styles. The Hedge Funds provide
diversification to equity markets within the growth portfolio, whilst still aiming to outperform the liabilities. The Multi Asset Credit
allocation offers exposure to the credit universe and has a more defensive stance than equity.

The matching portfolio consists of a Liability Driven Investments (LDI) strategy which includes the use of fixed interest government
bonds (gilts), index-linked gilts, cash and various derivative instruments such as swaps and repurchase agreements. The strategy is
used with the aim to match the interest rate and inflation exposure of a portion of the Scheme’s liabilities and help reduce the funding
level volatility.

Since Q2 2020, the Scheme has seen a steady improvement in the funding level. Therefore, a de-risking framework was put in place
whereby an improvement in the funding level to a predefined level will trigger a de-risking step, which involves reducing assets in the
growth portfolio in favour of the matching portfolio. The de-risking framework is reviewed by the Trustees on a regular basis and upon
changes in the investment strategy or following market shocks.

Over 2023, the Trustees reviewed the LDI strategy and agreed to implement a more bespoke LDI approach alongside enhanced

monitoring to more closely manage interest rate, inflation rate, and liquidity risk.

The Trustees insure certain benefits which are payable on death before retirement.

Reporting at 30 September 2023

The results of the latest funding valuation at 31 December 2021 have been adjusted to the new balance sheet date, taking account of
experience over the period since 31 December 2021, changes in market conditions, and differences in the financial and demographic
assumptions. The present value of the Defined Benefit Obligation, and the related current service cost, were measured using the
projected unit credit method.

The principal assumptions used to calculate the liabilities under IAS 19 are as follows:

Main financial assumptions

JERSEY ELECTRICITY Annual Report and Accounts 2023 Value at 30 Value at 30 September September 2023 2022 % p.a. % p.a.Discount rate 5.4 5.2 Jersey RPI inflation 3.6 3.7Pension increases in payment – Short term (year 1) - - – Long term (year 2 onwards) - - Pension increases in payment for pensions purchased with AVCs: 3.6 3.7 Salary increase:– Short term (year 1) 8.0 6.0 – Short term (year 2) 3.6 5.0 – Long term (year 3 onwards) 3.6 3.7 The financial assumptions reflect the nature and term of the Scheme’s liabilities.

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STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

16 Pensions (continued)

Main demographic assumptions

Assets

The Scheme assets are invested in the following asset classes. All assets have a quoted market value in an active market.

JERSEY ELECTRICITY Annual Report and Accounts 2023 Value at 30 September 2023 Value at 30 September 2022Post-retirement mortality base table SAPS “S3P” (All) tables for males and SAPS “S3P” (All) tables for males and SAPS “S3P” (Mid) tables for females SAPS “S3P” (Mid) tables for females with 95% scaling with 95% scalingPost-retirement mortality future improvements CMI 2022 projections (A = 0.0%, CMI 2021 projections (A = 0.0%, Sk = 7.0) with long-term Sk = 7.0) with long-term improvements of 1.25% p.a. improvements of 1.25% p.a.Life expectancy for male currently aged 60 26.4 27.0Life expectancy for female currently aged 60 28.5 29.0Life expectancy at 60 for male currently aged 40 27.9 28.5Life expectancy at 60 for female currently 30.0 30.5aged 40 Pre-retirement mortality DB transfers 0% of deferred members are 0% of deferred members are assumed to transfer out assumed to transfer outAge difference A male member is assumed to be A male member is assumed to be 3 years older than his wife/partner 3 years older than his wife/partner A female member is assumed A female member is assumed to be to be 1 year younger than her 1 year younger than her husband/partner husband/partnerProportion married 85% of males and 62.5% of females 85% of males and 62.5% of females are assumed to be married at are assumed to be married at retirement or earlier death retirement or earlier deathCash commutation Active and deferred members Active and deferred members commute 20% of pension at a rate commute 20% of pension at a rate equivalent to 90% of the value equivalent to 90% of the value of the member’s pension of the member’s pensionThe mortality assumptions are based on the recent actual mortality experience of Scheme members and allow for expected future improvements in mortality rates. Value at 30 Value at 30 September September 2023 2022 % p.a. % p.a.LDI/UK Gilts 27,709 14,915 Equities 29,650 38,925 Diversified Growth Funds 53,395 58,640 Cash and cash commitments 358 64 Total market value of assets 111,112 112,544

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STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

16 Pensions (continued)

Reconciliation of funded status to balance sheet

Profit and loss and comprehensive income

JERSEY ELECTRICITY Annual Report and Accounts 2023 Value at 30 Value at 30 September September 2023 2022 % p.a. % p.a.Fair value of Scheme assets 111,112 112,544 Present value of funded Defined Benefit Obligation (85,566) (86,110) Funded status and asset recognised on the balance sheet 25,546 26,434 Related deferred tax liability (5,109) (5,287) Net pension asset 20,437 21,147 2023 2022Amounts falling due within one year: £000 £000Service costs: Current service cost 1,119 2,763 Past service cost 1,383 - Administration expenses 493 530Financing cost Interest on net defined benefit liability / (assets) (1,373) (405) Pension expense recognised in profit and loss 1,622 2,888Remeasurements in OCI: Return on plan assets (in excess of) / below that recognised in net interest 3,074 47,459 Actuarial gains due to changes in financial assumptions (1,692) (55,391) Actuarial gains due to changes in demographic assumptions (1,114) (375) Actuarial losses/(gains) due to liability experience 547 (669) Total amount recognised in OCI 815 (8,976) Total amount recognised in profit and loss and OCI 2,437 (6,088)Changes in Defined Benefit Obligation over the year 2023 2022 £000 £000Opening defined benefit obligation 86,110 142,295 Current service cost 1,119 2,763 Interest expense on DBO 4,365 2,937 Contributions by scheme participants 435 450 Actuarial gains on scheme liabilities arising from changes in financial assumptions (1,692) (55,391) Actuarial gains on scheme liabilities arising from changes in demographic assumptions (1,114) (375) Actuarial losses/(gains) on scheme liabilities arising from experience 547 (669) Net benefits paid out (5,587) (5,900) Past service cost 1,383 - Closing defined benefit obligation 85,566 86,110
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STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

16 Pensions (continued)

Sensitivity analysis

The tables below set out the impact to the balance sheet and profit and loss from changes to some of the key assumptions
in the discount rate, salary increases, inflation and mortality.

JERSEY ELECTRICITY Annual Report and Accounts 2023Changes to fair value of the Scheme assets during the year 2023 2022 £000 £000Opening fair value of Scheme assets 112,544 161,056 Interest income on Scheme assets 5,738 3,342 Remeasurement gains/(losses) on Scheme assets (3,074) (47,459) Contributions by the employer 1,549 1,585 Contributions by scheme participants 435 450 Net benefits paid out (5,587) (5,900) Administration costs incurred (493) (530) Closing fair value of Scheme assets 111,112 112,544 Actual return on scheme assets 2023 2022 £000 £000Interest income on Scheme assets 5,738 3,342 Remeasurement gain/(loss) on Scheme assets (3,074) (47,459) Actual return on Scheme assets 2,664 (44,117) Analysis of amounts recognised in OCI 2023 2022 £000 £000Total remeasurement (losses)/gains (815) 8,976Total (loss)/gain (815) 8,976 Change New value £000 £000 Discount rate: Following a 0.5% p.a. decrease in the discount rate Pension expense for the following year 582 762DBO at 30 September 2023 6,069 91,635Discount rate: Following a 0.5% p.a. increase in the discount rate Pension expense for the following year (593) (413)DBO at 30 September 2023 (5,516) 80,050Salary increases: Following a 0.5% p.a. increase in the salary increase Pension expense for the following year 156 336DBO at 30 September 2023 1,532 87,097Inflation rate: Following a 0.5% p.a. decrease in inflation Pension expense for the following year (166) 14DBO at 30 September 2023 (1,786) 83,780Inflation rate: Following a 0.5% p.a. increase in inflation Pension expense for the following year 174 354DBO at 30 September 2023 1,865 87,431Mortality Following a 1 year increase in life expectancy Pension expense for the following year 263 443DBO at 30 September 2023 3,780 89,316120

STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

17 Share Capital

18 Non-controlling Interests

19 Financial Commitments

JERSEY ELECTRICITY Annual Report and Accounts 2023 2023 2022 £000 £000At 1 October 144 158 Share of profit on ordinary activities after taxation 153 140 Dividends paid (165) (154)At 30 September 132 144Non-controlling interests represent 49% (2022: 49%) ownership of the issued ordinary share capital of Jersey Deep Freeze Limited. 2023 2022 £000 £000Five-year capital expenditure plans: Contracted 2,966 1,970Not contracted* 122,197 92,062 125,163 94,032*Although this sum is approved in principle it is still subject to formal business cases being reviewed in due course. Authorised Issued and Authorised issued and fully paid fully paid 2023 2023 2022 2022 £000 £000 £000 £000‘A’ Ordinary shares 5p each (2021: 5p each) 1,250 582 1,250 582Ordinary shares 5p each (2021: 5p each) 1,500 950 1,500 950 2,750 1,532 2,750 1,5325% Cumulative participating preference shares £1 each 100 100 100 1003.5% Cumulative non-participating preference shares £1 each 150 135 150 135 250 235 250 235Equity shares ‘A’ Ordinary shares entitle the holder to 1 vote for every 100 shares held whereas the Ordinary shares carry voting rights of 1 vote for every 20 shares held. At 30 September 2023 there were 11,640,000 ‘A’ Ordinary and 19,000,000 Ordinary shares in issue.Preference shares Preference shares are classified as financial liabilities under IFRS. Dividends paid to preference shareholders in the year were £9,000 (2022: £9,000) and are recorded in finance costs in the consolidated income statement. 5% preference shares carry voting rights of 1 vote per 5 shares and 3.5% preference shares carry voting rights of 1 vote per 10 shares.ESOP reserve The Jersey Electricity Employee Benefit Trust was established on 24 May 2012 when the Company introduced a new employee share scheme for eligible employees of the Group based on a three-year vesting period. As at 30 September 2023, 7,900 remain within the Trust as unallocated shares with a combined valuation of £35,000 representing a market value of £4.43 per share. These shares are expected to form part of a future employee share scheme. The Trust was funded by way of an interest free loan and for accounting purposes is seen as an extension of the Group.121

STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

20 Leasing

Operating leases with tenants

The Group leases out all its investment properties and certain other freehold properties under operating leases. The future aggregate
minimum rentals receivable under non-cancellable operating leases are as follows:

21 Derivatives and financial instruments and their risk management

(i) Categories of financial instruments

The carrying values of the financial assets and liabilities of the Group are as follows:

JERSEY ELECTRICITY Annual Report and Accounts 2023 2023 2022 £000 £000No later than 1 year 1,611 1,676 Later than 1 year and no later than 2 years 1,447 1,254 Later than 2 years and no later than 3 years 1,398 1,254 Later than 3 years and no later than 4 years 1,020 1,206 Later than 4 years and no later than 5 years 1,020 1,020 Later than 5 years 9,236 10,257 15,732 16,667 Financial assets 2023 2022 £000 £000Fair value through other comprehensive income Derivative financial instruments 193 3,123Amortised costSecured loan accounts 300 300Trade and other receivables (excluding prepayments) 21,036 17,436Cash and cash equivalents 47,429 47,397 68,765 65,133Financial liabilities 2023 2022 £000 £000Fair value through other comprehensive income Derivative financial instruments 761 330Amortised costSecured loan accounts 30,000 30,000Trade and other payables 10,835 12,405Cash and cash equivalents 235 235 41,070 42,640The primary financial risk faced by the Group is foreign exchange exposure as the largest single cost in the consolidated income statement is the importation of electricity from Europe that is denominated in Euros.The Group’s currency exposure at 30 September 2023, taking into account the effect of forward contracts placed to manage such exposures, was £2.4m (2022: £2.4m) being the translated Euro liability due for imports made in September but payable in October.All financial instruments for which fair value is recognised or disclosed are categorised within the fair value hierarchy. This hierarchy is based on the underlying assumptions used to determine the fair value measurement as a whole and is categorised as follows:Level 1 financial instruments are those with values that are immediately comparable to quoted (unadjusted) market prices in active markets for identical assets or liabilities;Level 2 financial instruments are those with values that are determined using valuation techniques for which the basic assumptions used to calculate fair value are directly or indirectly observable (such as to readily available market prices); andLevel 3 financial instruments are shown at values that are determined by assumptions that are not based on observable market data (unobservable inputs).The derivative contracts for foreign currency shown above are classified as level 2 financial instruments and are valued using a discounted cash flow valuation technique. Future cash flows are estimated based on forward exchange rates (from observable forward exchange rates at the end of the reporting period) and contracted forward rates, discounted at a rate that reflects the credit risk of various counterparties.

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STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

21 Derivatives and financial instruments and their risk management (continued)

(ii) Foreign exchange risk

The Group utilises currency derivatives to hedge the payment of a proportion of its future purchases of power from France which
currently extend to the next three calendar years.

Due to the nature of the Euro denominated purchases being largely underpinned by contracted amounts the Group has accurate
expectations of the values and timings of future liabilities, reducing the risk of exposure to hedge against ineffectiveness which would
arise if units imported were to vary by more than 20% from established patterns.

Foreign exchange hedging instruments are contracted to mature as the liabilities fall due and so minimise any timing or other
uncertainties of future cash flows.

Currency derivative

JERSEY ELECTRICITY Annual Report and Accounts 2023 2023 2022 £000 £000Derivative assetsLess than one year 64 483Greater than one year 129 2,640Derivative liabilities Less than one year (536) (330)Greater than one year (255) -Total net (liabilities)/assets (568) 2,793Tax on items recorded through the balance sheet 113 559 (455) 2,234At the balance sheet date, the total notional amount of outstanding forward foreign exchange contracts that the Group has committed are as below:Forward foreign exchange contracts 2023 2022 £000 £000Less than one year - operational expenditure 36,395 33,855Greater than one year and less than three years 47,227 48,804 83,622 82,659The fair value of currency derivatives that are designated and ineffective as cash flow hedges amount to £nil (2022: £nil). In the current period amounts of £3.4m net were debited (2022: £4.8m credit) to equity, being £3.2m fair value loss (2022: £7.2m fair value gain) and £0.2m debit (2022: £2.4m debit) recycled to the consolidated income statement. Gains and losses on the derivatives are recycled through the consolidated income statement at the time the purchase of power is recognised.The table below provides the reconciliation for the cashflow reserve:Hedging Reserve 2023 2022 £000 £000At 1 October 2,234 (1,618)Amounts recycled from other comprehensive income to income statement (165) (2,382)Changes in fair value recognised in other comprehensive income (3,196) 7,197Tax on items recorded in other comprehensive income 672 (963)At 30 September (455) 2,234Given the limited exposure to foreign exchange rate risk at the year-end no sensitivity analysis has been presented.(iii) Commodity risk Power PurchasesThe Group has power purchase agreements with EDF in France. As at 30 September 2023, the import prices, but not volumes, have been substantially fixed for 2023. The Group entered into a 10-year framework agreement with EDF on 1 January 2013 which has a commitment to procure around 35% of expected volume requirements at known prices. During 2017 this agreement was extended by a further 5 years to 2027. The remainder of the requirement will be decided by a market pricing mechanism, but with no volume commitment, with a goal to deliver a degree of stability in tariff pricing to our customers.

123

STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

21 Derivatives and financial instruments and their risk management (continued)

(iv) Credit risk

The Group’s principal financial assets are cash and cash equivalents, short-term investments and trade and other receivables. The
Group’s credit risk is primarily attributable to its trade and other receivables. The amounts presented in the consolidated balance sheet
are net of allowances for expected credit losses which are set out below. The trade and other receivables at 30 September 2023 outside
agreed credit terms are as follows:

Expected credit losses provision

The Group applies the IFRS 9 simplified approach to measuring expected credit losses which assesses if a material expectation exists
for lifetime expected loss allowances against all trade receivables based on historical realised write-downs. Where specific customers
are viewed to be at risk of default due to known or expected economic circumstances, their receivable balances at the balance sheet
date are provided for in full.

An explanation of the Group’s assessment for calculating expected credit losses and balance write-offs is detailed in note 1.

An expected credit losses provision is recorded against assets which are past due but for which no individual provision is made.
This is calculated based on historical experience of levels of recovery.

(v) Capital management

Strong capital management is an integral part of the Directors’ strategy to achieve the Group’s stated objectives. The capital managed
by the Group consists of borrowings, cash and cash equivalents and equity of the Group. The Directors review financial capital KPI’s on
a monthly basis. The £30m private placement drawn down in July 2014 provides long-term funding to the Group supplemented by a
five year £10m revolving credit facility. Liquid funds are managed daily and placed on short-term deposits maturing to meet liabilities
when they fall due. The Group is subject to externally imposed capital requirements in respect of the borrowing facilities detailed in
note 15. The Group has complied with these requirements throughout the year.

JERSEY ELECTRICITY Annual Report and Accounts 2023 2023 2022 £000 £000Less than 30 days 1,454 1,194 Greater than 30 days 1,108 304 Greater than 60 days 231 156 Greater than 90 days 1,235 366 4,028 2,020 The credit risk on liquid funds and derivative financial instruments is limited because the counterparties are banks with high credit ratings assigned by international credit-rating agencies. The Group monitors its credit exposure to its counterparties via their credit ratings and through its treasury policy, thereby limiting its exposure to any one party to ensure that they are within Board approved limits and that there are no significant concentrations of credit risk.For trading related receivables, the credit worthiness and financial strength of customers is assessed at inception and on an ongoing basis. Payment terms are set in accordance with industry standards. Deposits are requested where credit knowledge of the customer is limited. The Group works closely with its customers to assist them in effectively managing their bill payments. The Group has no other significant concentration of credit risk. Exposure is spread over a large number of counterparties and customers with a maximum credit exposure of £26.5m (2022: £26.6m).Movements in the provision for expected credit losses were as follows: 2023 2022 £000 £000At 1 October 303 303Charge for expected credit losses - included within operating costs 240 25Amounts written (off)/back (53) (25)At 30 September 490 303Provision of impaired receivables (by age) is as follows: 2023 2022 £000 £0000-180 days 200 56181-360 days 140 101Greater than 360 days 150 146 490 303

124

STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

21 Derivatives and financial instruments and their risk management (continued)

(vi) Liquidity risk

The Group maintains a strong liquidity position and manages the liquidity profile of its assets, liabilities and commitments so that cash
flows are appropriately balanced and all financial obligations are met when due.

JERSEY ELECTRICITY Annual Report and Accounts 2023Maturity of financial liabilities at 30 September 2023 2022 £000 £000Less than one year 21,416 22,782 More than one year and less than five years 35,260 34,007 More than five years 42,767 44,106 99,443 100,895 Financial liabilities shown above include interest payments payable on the £30m private placement.Borrowing facilitiesThe Group had undrawn borrowing facilities at 30 September 2023 of £12.0m (2022: £12.0m) in respect of which all conditions precedent had been met. The overdraft facility of £2.0m is annually renewable, and the Revolving Credit Facility was renewed in July 2019 for a further five years.Maturity of financial assets and liabilitiesThe financial assets of the Group comprise deposits placed with banks which all expire in less than one year. The maturity profile of the Group’s financial assets and liabilities at 30 September was as follows:Maturity of financial assets at 30 September 2023 2022 £000 £000Less than 3 months: cash and cash equivalents and short-term investments 7,429 7,397 Greater than 3 months: short-term investments 40,000 16,000Interest rate riskInterest rate exposure on the £30m of private placements borrowing is managed by having fixed coupons.

125

STRATEGY STAKEHOLDERS GOVERNANCE FINANCIAL STATEMENTS

22 Ultimate controlling party and related party transactions

Government of Jersey (“GoJ”)

Under IFRS 10, an investor controls an investee only if all three elements of control identified in the standard are present. Although the
GoJ holds the majority voting rights, the Directors have concluded that two of the three elements to establish control are not present,
and as a result we do not consider that the GoJ should be considered an ultimate controlling party. The two elements and the basis for
our conclusions are set out below:

That an investor has control if it has power over the investee, i.e., the investor has existing rights that give it the ability to direct the
relevant activities (the activities that significantly affect the investee’s returns) [IFRS 10]. The GoJ do not have control over Jersey
Electricity’s operating activities and there are no representatives on the Board from the Government of Jersey. Pursuant to Rule
9.2.2 of the Listing Rules, a Relationship Agreement was signed in 2014 to ensure the GoJ understands the implications of the listed
status of Jersey Electricity and that it cannot control the Company’s operating activities despite their majority ownership.

That an investor has control if it has the ability to use its power over the investee to affect the amount of the investor’s returns
[IFRS 10]. The Jersey Electricity Board set the dividend policy for the Company, and only data that is available to all shareholders is
shared with the GoJ.

The Company has elected to take advantage of the disclosure exemptions available in IAS 24 (paragraphs 24 and 25) with regard to the
reporting of;

•

the amount of the transactions,

the amount of outstanding balances, including terms and conditions and guarantees,

• provisions for doubtful debts related to the amount of outstanding balances,

•

expense recognised during the period in respect of bad or doubtful debts due from related parties,

on the basis that the GoJ, despite not being a controlling party, has significant influence by virtue of holding the majority voting rights
and by means of legislation, specifically the Electricity (Jersey) Law 1937.

All transactions are undertaken on an arms-length basis in the course of ordinary business.

Energy from Waste Plant

Jersey Electricity signed a 25-year agreement in 2008 with the Government to purchase electricity produced by the EFW plant and to
share existing facilities with EFW. This agreement gives rise to the high value transactions with the Government during the year with
the value of electricity purchased from the facility during the year being £2.5m (2022: £2.2m) whilst the value of services provided to
the plant was £0.1m (2022: £0.4m).

Remuneration of key management personnel

The remuneration of key management personnel of the Group (which is defined as the Executive and non-Executive Directors) is set
out below.

JERSEY ELECTRICITY Annual Report and Accounts 2023 2023 2022 £000 £000Short-term employee benefits 951 739Post-employment benefits 101 102Non-Executive Director’s benefits 238 177 1,290 1,018Phil Austin, who is a non-Executive Director, is also a Board member of Ravenscroft Cash Management Ltd which provides treasury services to Jersey Electricity plc. Such services are provided on normal contractual terms, similar to their other clients.

126

OTHER INFORMATION (UN-AUDITED)

Five Year Group Summary (unaudited)

JERSEY ELECTRICITY Annual Report and Accounts 2023Financial Statements 2023 2022 2021 2020 2019Income Statement (£m)Turnover 125.1 117.4 118.6 111.7 110.7 Operating profit 14.5 11.9 20.5 16.2 16.1 Profit before tax 14.9 10.6 19.1 14.8 14.8 Profit after tax 11.4 8.5 16.3 11.7 11.9 Dividends paid (£m) 5.8 5.5 5.2 4.9 4.7 Balance Sheets (£m) Property, plant and equipment 216.1 216.2 216.6 217.9 217.0 Net current assets/(liabilities) 59.2 51.5 45.3 37.1 27.9 Non-current liabilities (91.3) (90.8) (87.5) (83.0) (79.2) Net assets 241.5 239.4 225.4 205.0 198.6 Financial Ratios and Statistics Earnings per ordinary share (pence) 36.8 27.2 52.7 37.9 38.4 Gross dividend paid per ordinary share (pence) 23.5 21.8 21.1 20.1 19.1 Net dividend paid per ordinary share (pence) 18.8 17.4 16.9 16.1 15.3 Dividend cover (times) 2.0 1.6 3.1 2.4 2.5 Cash at bank/(net debt) (£m) 17.4 17.4 13.1 5.5 (5.1) Capital expenditure (£m) 11.1 10.4 9.9 12.0 13.3Electricity Statistics Units sold (m) 608 613 639 619 627 % movement -0.7% -4.3% 3.3% -1.2% -1.1% % of units imported 94.5% 95.3% 95.2% 94.7% 94.1% % of units generated 0.4% 0.3% 0.4% 0.2% 0.3% % of units from Energy from Waste 5.1% 4.4% 4.4% 5.1% 5.6% Maximum demand (megawatts) 159 145 170 141 150 Number of customers 53,343 52,473 51,912 51,522 51,103 Customer minutes lost 4 5 5 5 6 Average price per kilowatt hour sold (pence) 14.6p 14.5p 13.9p 13.6p 13.3p Manpower Statistics (full time equivalents) Energy 265 253 238 199 188 Other 92 92 88 97 94 Trainees 17 18 21 9 11 Total 374 363 347 305 293 Units sold per energy employee (000’s) 2,260 2,422 2,686 3,112 3,336 Number of customers per energy employee 204 207 218 259 272 127

OTHER INFORMATION (UN-AUDITED)

Alternative Performance Measures

The tables below provide details for the alternative performance measures disclosed within the annual report.

Return on energy assets

The return on energy assets is defined as the return on capital employed by the Energy Division.

Dividend cover

Dividend cover measures the number of times a company can pay its current level of dividends to shareholder.

JERSEY ELECTRICITY Annual Report and Accounts 2023 2023 2022 £000 £000Capital employed by Energy division at 1 October (A) 178,696 179,636Capital employed by non-Energy Divisions at 1 October 37,539 36,914Total property, plant and equipment as at 1 October (note 10) 216,235 216,550Energy operating profit (note 3) (B) 12,922 7,502% return (B/A) 7.2% 4.2%5 year rolling average 6.2% 6.2% 2023 2022 £000 £000Earnings per ordinary share (pence) (A) 36.8 27.2 Net dividend paid per ordinary share (pence) (B) 18.8 17.8 Dividend cover (times) (A/B) 2.0 1.5

128

Financial Calendar

OTHER INFORMATION (UN-AUDITED)

2 January 2024

Preference share dividend

23 February 2024

Record date for final dividend

5 March 2024

Annual General Meeting

15 March 2024

Final dividend for year ended 30 September 2023

20 May 2024

7 June 2024

24 June 2024

1 July 2024

Interim Management Statement – six months to 31 March 2024

Record date for interim ordinary dividend

Interim dividend for year ending 30 September 2024

Preference share dividend

18 December 2024

Announcement of full year results

Annual General Meeting
The Annual General Meeting will be held at the Powerhouse, Queens Road, St. Helier, Jersey on Tuesday 5 March 2024
at 2:00pm. Details of the resolutions to be proposed are contained in the Notice convening the Meeting.

Press releases and up-to-date information on the Company can be found on the Company’s website (www.jec.co.uk).

JERSEY ELECTRICITY Annual Report and Accounts 2023The Powerhouse, PO Box 45
Queens Road, St Helier JE4 8NY
Tel 01534 505460
Fax 01534 505565
email jec@jec.co.uk
www.jec.co.uk

Printed on paper from
a sustainable source.