Profits at JEC rise by 14% to £10m
Thursday 18th December 2008, 3:00PM GMT.
JERSEY Electricity made £10 million profit before tax in the 12 months to 30 September, on sales of £81.9 million.
The announcement comes at a time when consumers are about to face a 24 per cent increase in their electricity bills – the first increase for two years. The figures represent a 14 per cent increase on the previous year’s profit of £8.7 million.
Profit from electricity alone increased by 33 per cent, to £6 million, up from £4.5 million in the previous 12 months. This was due to a five per cent increase in the amount of electricity sold. Shareholders will get a total dividend for the year of £2.31 on each share. The States of Jersey are major shareholders and own 62 per cent of the company. Jersey Electricity says that it needs to increase charges because of the higher cost of importing electricity from France and the lower value of the pound against the euro, as well as improvements to the infrastructure. This includes a multi-million pound replacement for the oldest of the two undersea cables to France.
Pictured: Replacing cables will be part of the infrastructure improvements
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Furious doesn’t even begin to describe how i’m feeling after I’ve read that…
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The pound’s fall against the euro has been relatively recent, the increase in electricity prices has been planned for some time.
In this current climate I would suggest the JEC dont prompt a competitor to set up in the island. Anything is possible as Jersey Telecom will testify!
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Some competition would be nice.
What are the JCRA doing?
Ah yes, Telecoms and Supermarkets……
Get your fingers out please and get us some decent competition for our Electricity providers.
I cannot believe how much my bill has gone up in the last few years.
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eat or heat?
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I am not impressed either. They are just looking for bigger and better bonuses for the top boys for next Christmas’ bonus. Did anybody receive a 24% pay rise to reflect Jersey’a ever increasing cost of living? The JEC needs to get real.
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i agree lula!!!greed!!!!
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greed greeed greeeeddddddddd
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Its Called life deal with it!
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Fine, we have to pay more for electricity but WHY didn’t they increase our bills gradually over the past 2 yrs instead of whacking it all on now???
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I am a JEC shareholder, but I am also annoyed about the price rises. Particularly I am annoyed that E7 off-peak is always half of the on-peak cost.
In the UK it is about one-third, so it looks as if everyone with electric heating is subsidising everyone who doesn’t have it.
This seems particularly harsh to pensioners who are more likely to need the heating on.
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They are one of the greediest companies on the island and naturally they have a monopoly!!
My direct debt has nearly doubled. The same old lame excuses for not dropping the charges are trotted out every time. This profit margin is disgraceful. But as usual the states will not do anything about it!
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i am dreading the bill after the price increase.
it will not be ofset by any wage increase whatsoever, if i am lucky enough to get one next year.
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It’s up to the States to sort this. They are, after all, the majority shareholder.
Then again as a tax payer it makes no odds to me as I could either pay more taxes or higher electric bills – either way it’s all income for the States.
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Just done a calculation….. my direct debit’s gone up by…..wait for it…..33% i wonder if thats coincidence…mmmmm
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This is not entirely the JEC’s fault. Our power is supplied from the French and is mostly Nuclear. It is therefore not affected by oil prices, the Froggies however have decided to hike up their fees. Interestingly they have not increased prices in France. They would have another revolution on their hands! Nice bit of en tant cordial, n-est pas!
Why cant we as individual customers choose who we buy our power from? You can pick and choose your supplier in the UK to suit your individual requirements.
Maybe someone should suggest it to the States!?!?
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If they refuse to drop the prices then why not hold back on payment of your bill and complain.
If every customer held back their payment and complained then they would be short of cashflow and would certainly review their prices.
Next bill after Christmas keep you money in the bank until they listen and then pay them.
They can not cut every one off at once and i am certain if they do start cutting people off for not being able to afford the rises then the JEP would have a story!
Oh by the way, if you are one of the many people who have a mini blackpool illuminations over your house then i would start saving now for your bill in January!
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The question that NEEDS to be asked here is “How long will it take for JEC to pass on the massive drop in fuel prices over the last couple of months?”
At the time, the reason for the hike was the huge increase in fuel prices. We are now looking at crude oil prices sitting at approximately one third of what they were when this rise was justified. It would be lovely to see a decision on this made quickly and for JEC to take the lead in passing on the cheaper cost of fuel to the consumer…
Not much of a chance of that happening though I s’pose.
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Hunter Stockton’s comment gives me an idea.
In view of the reduced price of oil, why not fire up the old oil generator? It has got to be cheaper to run now than France’s expensive nuclear power.
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Jersey needs another Electricity supplier in the island and fast. I have a small 1 bedroom flat, well gorfified bedsit really and I was getting quarterly bills of nearly £300! An engineer checked everything and he said all was ok.
I was late paying a couple of bills so they decided to change me to a key meter whilst I was away!! No letter received advising this despite them saying one was posted. When I confronted them I was told nothing could be done. I had emailed them to say the £68 pound balance would be cleared on a certain date, this was done about 7:30 am (before they opened). The “letter” was sent out later that day !!! I was left with £5 credit, no key charger and no key to be able to get into the communal cupboard.
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mistershifter has it correct. Add to that the drop in the £ aganist the Euro and it speaks for its self………and remember that the States of Jersey are the major shareholders.
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Actually nuclear prices are affected by oil prices: Oil rises so the demand for alternatives like nuclear rise thereby increasing their prices. Nuclear is effectively the same as any other commodity. Just depends when you strike the deal. JEC probably struck the deal when oil was >$100 a barrel, or was forecast to be that when the new deal commenced, and demand for nuclear was high. The French are only going to sell to the highest bidder.
I’m not making excuses for them but unless you know all the factors involved in the deal it’s hard to know whether we are being stitched or not. May be the JEC should explain themselves.
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