Jersey Electricity Report and Accounts 2013: Sustainable energy powering our future.

REPORT AND ACCOUNTS 2013

OUR YEAR  

A YEAR IN FOCUS

CONTENTS

CONTENTS  DIRECTORS, OFFICERS AND

PROFESSIONAL ADVISERS

 CHAIRMAN'S STATEMENT

2 NON-EXECUTIVE DIRECTORS Geoffrey Grime FCA (Chairman)

Clive Chaplin BA

Michael Liston OBE FREng, BSc, CEng, FIEE, CIMgt John Stares BSc, FCA

8Aaron Le Cornu BSc, ACA

CTRICITY

EXECUTIVE DIRECTORS

10

Christopher Ambler BA, MEng, CDipAF, CEng, MIMechE, MBA (Chief Executive) BILITYMartin Magee CA (Finance)

Richard Plaster FCIPD, CDir, MIOD (Commercial and Human Resources)

SECRETARY Peter Routier BSc, FCIS

REGISTERED OFFICE

 H Queen s Road, St. Helier , Jersey T

PLACE OF INCORPORATION Jersey

AUDITOR

 S Deloitte LLP, 66-68 The Esplanade, St. Helier , Jersey

BANKERS

ERGY Royal Bank of Scotland International Limited,  

71 Bath Street, St. Helier , Jersey

NITY BROKERS

Canaccord Genuity Wealth Management,

38-39 The Esplanade, St. Helier , Jersey

REGISTRAR

Computershare Investor Services (Jersey) Limited,  Queensway House, Hilgrove Street, St. Helier , Jersey

44

1

CHAIRMAN S STATEMENT

CHAIRMAN'S STATEMENT

CHIEF EXECUTIVE'S REVIEW

 ENERGY CHIEF EXECUTIVE S REVIEW

This year we took the opportunity to review and reconsider our existing purpose, vision and values and re-craft them in a

way that is more meaningful to all staff across all business areas. We established a team of senior staff from

across the organisation to discuss and debate issues

and opportunities for our business to sharpen our

perspective on four questions:

• Why do we exist?

• What do we mean by sustainable?

• Where are we going?

• How should we work together?

This renewed vision is now being

cascaded, discussed and debated down

the organisation. We hope this will lead

to a sharper understanding of our vision as

a business, how each of us can contribute to that vision, and how we should work together to achieve our aims.

Jersey Electricity has been serving our community for 90 years.

We are proud of our role in providing safe, clean energy and

services to sustain day-to-day life and economic growth. But the energy we use today must be sustainable so future generations are able to meet their needs, too. With our role, therefore, comes huge responsibility. We are committed to the long term and strive to meet the challenges this brings.

Our purpose is to deliver sustainable energy to enable our community and ensure a positive legacy for future generations.

• People – caring, serving, employing

• Environment – being green

• Profit – profit powers investment

• Security – keeping the lights on

• Economy – value for money

GROUP PURPOSE CHIEF EXECUTIVE S REVIEW

Our priorities

• Deliver Normandie 3 capital investment on time

Our future is exciting. Energy markets are  Our six values describe the cultural standards  and to budget

changing. Customer needs are changing.  and expectations for how we work together.

New innovation, new technologies and new  We believe it is crucial for all staff to understand  • Grow share of energy applications are emerging. All this will lead to  what is expected of them, and these values help  market via fuel switch from new opportunities for Jersey Electricity across all  communicate this. competing fuels and  

areas of the business. - We do everything safely and  new build

responsibly or not at all - nothing is more  • Design Smart Switch

Our vision is to responsibly and sustainably  important than the safety of the public, our  solution, prepare for and deliver value to our customers by: customers and our staff. commence rollout

• Growing our share of the energy market - We listen to our customers and  • Re-focus business around

• Building our position in energy services seek to understand and respond to their needs,  services and solutions.

and solutions, and related products treating them the way we would wish to be

• Deliver St. Helier West

• Enhancing our energy infrastructure  treated, with respect and honesty.

investment

for a smart future - We respect and value our colleagues

• Strengthening our relationships with  as individuals and we believe we are stronger as  • Manage operational and our customers a team, leading to better solutions and a more  financial risks

We have real assets: highly flexible and very  enjoyable and rewarding work life. • Develop (with Guernsey capable people; a respected, well known and  - We accept responsibility for  Electricity) future Channel trusted brand and a well-established, reliable  everything we say and do, safegaurding the  Islands grid

infrastructure in which we continue to invest.  natural environment and the local community,

Our challenge is to take this vision, leverage  as well as the interests of all our customers,

our strengths and assets, and develop new  shareholders and staff.

opportunities that fulfil our purpose. - We strive to work in a way that s

both effective and efficient, continuously  

improving everything we do - innovating where

we can but keeping things simple.

- We are trustworthy, dependable and

reliable, delivering on our commitments and

always there when you need us.

ENERGY GROWTH

ENERGY GROWTH CHIEF EXECUTIVE S REVIEW

MAINTAINING AFFORDABLE ELECTRICITY AND PRICE STABILITY CHIEF EXECUTIVE S REVIEW

March's snow storms brought 55 separate incidents of overhead power cable

damage in 36 hours, affecting over 200 customers across

11 of Jersey's 12 parishes. Our restoration teams did

a magnificent job to restore supplies in often atrocious and hazardous conditions, working from before dawn until after 10pm until the last customer was back on supply.

ENSURING SECURITY AND

SUPPLY SECURITY STANDARD

To meet Jersey Electricity s security standards, the system is designed to meet any one of:

• A one-in-eight year winter peak demand

• All normal load in the event of the loss

   of the single largest interconnector with

   France (N-1) plus a simultaneous failure

   of the largest:

o diesel generator; and

o gas turbine

• 75% of peak winter load for 48hours

   from on-Island generation

   (no simultaneous loss of on-Island capacity)

Installation of our two refurbished 11MW Sulzer diesel generators was completed before the onset of the severest

part of winter.

Generation

An important driver of supply continuity is having ES2LO0 EU1 C2RT- RC2 EI0 CS I1  T3 Y ELECTRICITY18 +. S2 O% URCES IN %ELECTRICITY FROM EDF  othne-I smlaanindt egneannecrea toiofn L.aOCuor llceottnet iPnouwede ri nSvtaestitomne nats in

ORIGINS OF IMPORTED  diverse forms of electric supplies available from

Year   JE  EfW  Import Nuclear 66.7% insurance against disruption to imported power 2008-09  6.6%  0.9% 92.5% Hydro 30.8% supplies is therefore especially important. It is 22000190--1101 51..98%% 02..66%% 9935..56%% Other 2.5% atenrm in cvoessttms aenntd i nw lhoinchg -tt ehrismy seeacru ri  tmy o or ve e  rth sa hn o  ra t-n y

other since our first interconnector to France was

2011-12  2.5%  5.2% 92.3% installed in 1984 has paid huge dividends in 2012-13  20.7%  3.9% 75.4% terms of supply security.

-1.3%-16.9%

The £10m project to replace two decommissioned

5MW Mirrlees generators with two refurbished 147 GWh  11MW Sulzer diesel generators was well in

JE locally  process before we lost EDF1 last June. However, generated the programme was immediately accelerated

along with a major upgrade of various other 551 GWh  generation assets, including 30MW of previously

Imported  moth-balled steam generation and an associated from EDF generator transformer, to create an extra 55MW

of on-Island electrical generation capacity before the onset of the severest part of winter.

These accelerated plant upgrades to a level necessary to provide even further capacity headroom over and above the Island s peak

winter demand, and the mobilisation of staff required a huge effort and great flexibility by our own people as well as our Swiss contract partners

MIE and our Madeiran sub-contractor Vapor Ilhas. The result was that in the first six months of this

year we generated 31% of our electricity on-Island (compared with only 1% last year) and imported

66% of our requirements from France (down from 28 GWh  93% in 2012), with the balance coming from the

Generated by  Energy-from-Waste plant.

EfW plant

We have installed and commissioned a Heat Recovery Steam Generator (HRSG) that

will substantially cut costs and

aid plant efficiency. The HRSG,

at 11 metres high and weighing 35 tonnes, recovers and uses the exhaust gases from the diesel engines to produce low pressure steam at 8.3bar and 177°C. This is used to heat heavy fuel oil to facilitate the combustion process

in the boilers and saves us having to generate low pressure steam in an electrically powered 2MW boiler.

The Cable Enterprise weighs 7,000 tonnes unloaded, is 115 metres long and 32 metres wide and underwent a £25m refurbishment on Teesside in 2012. It can withstand winds of up to Force 7 and waves two metres high.

Normandie 3

Nine years after the Board sanctioned the initial  The submarine cable has already been

evaluation of a third interconnector to France,  manufactured and tested at Prysmian s flagship known as Normandie 3, we finally placed the  Arco Felice plant, Naples. Its laying and burial major contracts for this complex £70m project.  will be performed by Prysmian s installation team We have made excellent progress in all areas  that has particular expertise in offshore wind

and the overall project is presently on schedule  farm connections. In July, we confirmed that the for commissioning in 2015. Cable Enterprise will be used for the submarine

installation scheduled to start in March 2014.

After an extensive and complex planning process

involving 18 different authorities and parties in  The land cable in Jersey is being installed

France, we finally received permissions from  by Prysmian UK who have sub-contracted GJ1 the Prefet de la Manche at the end of 2012,  the civil works to local contractors Jayen

the essential precursor to commencing the  Ltd. Groundworks in Jersey started in March

tendering process. On 19 February we signed  with initial trenching and duct laying using a GJ2 contracts with world leading, Italian cable  method designed to minimise road disruption

systems specialists the Prysmian Group worth  and ease future replacement. The land cable

a combined £45m for the manufacture and  was manufactured in Gron, France, and will installation of the 35km, 100MW submarine  be delivered to Jersey in February 2014. The and adjoining Jersey-side 7km, 90,000 Volt  cable itself will be pulled into the ducts in March land cable, related network components and  2014, with completion of the works expected in specialist civil works.  May 2014.

The cable, which will eventually form part of  As we go into 2014, our 90th anniversary,

the Channel Islands Electricity Grid (CIEG), will  Jersey Electricity should be well positioned take a more southerly route than our existing  to complete this historic project which is key supply cable, Normandie 2, and will connect via  to delivering secure supplies of low carbon underground cabling to a different, more resilient  electricity into the Channel Islands for decades part of the French network to further enhance  to come. It has been a long and arduous process security and diversity of supply.  to get here and my sincere thanks go to the team

which has worked tirelessly to make it possible.

Normandie 3 will connect to a 400kV substation

at Periers via 19km of land cable. It will enter

the sea at Pirou Plage on the French coast and

come ashore in Grouville Bay. From there, it will

connect to the 90,000-Volt land cable carrying

power to our £10m South Hill Switching Station,  N1 which was commissioned in 2011, ready for the

connection. N2

N3 N4

Main picture: Senior Project Engineer Jeremy Willis inspects the Normandie 3 groundworks.

While above: All systems are in place to connect the 100MW submarine cable after contracts for its manufacture and installation were signed with Prysmian Group in February.

This important deal

is another example of our close working partnership with Guernsey Electricity

Transmission: CIEG-PCMA

The first ever cable fault on our 90kV Channel Island Electricity Grid (CIEG) network that occurred on a submarine section of the Guernsey-Jersey link (GJ1) in April 2012 brought into sharp focus the importance of a rapid response and repair on critical subsea cable assets. Both Island utilities recognised this long ago and, as partners in the CIEG, have

for some years been working towards a more efficient and cost effective solution for repairing low probability but high impact submarine cable faults.

This year brought that solution into reality in

the form of a ground breaking Power Cable Maintenance Agreement (PCMA) between the CIEG and Dutch cable installation specialist Visser and Smit Marine Contracting (VSMC). This development of an entire subsea cable repair system, comprising contracts, vessels, fixtures, spare cables and storage facilities has caught the interest of the wider power industry due to the growth in the installation of submarine cables, supporting offshore wind farms, and the high cost of their repair.

The £2m contract with VSMC includes the manufacture of cable pans to store spare lengths of our existing 90MW interconnector (1,400m), Normandie 2, and the existing 55MW GJ1 cable (1,700m). There is also provision of a turntable, loading arm and lifting frame to facilitate handling of the pans and cables.

The agreement also covers the provision of vessels necessary to carry out future repairs, agreed response times and pricing schedules for a number of scenarios following a fault or

damage to a subsea cable so we know up front broadly what the costs and lead times would be.

The equipment and cables will

be stored by VSMC in Dordrecht, Holland, allowing easy access

and rapid mobilisation in the event

they are required. Until now our

repair cables have been stored

with the original manufacturers ABB

at Karlskrona, Sweden. However, Karlskrona is snow bound for much

of the winter, making access difficult.

The improved accessibility of Dordrecht, coupled with having the cable already in the pan which can be lifted directly on to a turntable and barge, means it can be moved to a fault site much faster and far more cost effectively.

In August, the two pans weighing 40 tonnes

each and measuring 17 metres in diameter

set sail by barge from Holland, to Karlskrona to

collect the spare cable lengths, from where they

have been stored since Normandie 2 and GJ1 were installed in 2000, and bring them back to their new storage facility in Dordrecht. The CIEG intends to store spare lengths of any future submarine cables with VSMC in the same way. This includes Normandie 3,

a potential new Normandie 1 cable to replace the first failed interconnector between Jersey and France, and an additional Guernsey-Jersey link, GJ2.

This important deal is another example of our close working partnership with Guernsey Electricity and a further enhancement to the significant benefits it has brought to both islands since the CIEG was formed 13 years ago.

Of immense significance to the Normandie 3 project was an agreement we signed in May with our CIEG partners Guernsey Electricity to share the cost and capacity of the cable.

This agreement enables Guernsey to also share the capacity

of a potential new 100MW replacement Normandie 1 cable over the route of the original link which failed permanently in June 2012. In addition, it lays the foundation for a working partnership on a second Jersey- Guernsey cable link to enable increased power transfer between the islands.

Main picture and below: Operation Dordrecht as the pans and turntable move our spare cable lengths from Sweden to VSMC in Holland

The general slowdown in the

building trade has contributed to a

7% decrease in new connections and

around a 20% reduction in switching

operations on the prior year. This has

allowed the Distribution team to concentrate

on asset replacement and maintenance as well as network reinforcement projects.

Overall, we installed almost 7MVA of new transformer capacity, around 28km of new cable, four new substations, 15 refurbished substations and 795 new services. We maintained 166 substations and patrolled almost 16 KM of line. Substations under Jersey Electricity s management now number 731.

Our Smart Meter project has suffered some unavoidable delays due to

supply issues with our chosen Liberty Smart Meter which directly resulted  Working closely with Swiss Post Solutions, we from delays with the UK s Smart Meter programme and the the release of  have made good progress with our exciting technical standards. Although around 9,500 Horstmann Mainscom Smart  web-based customer interface, Smart Account Meters are already installed across our network, our meter supplier Secure  that will complement our Smart Metering

has been unable to provide sufficient quantities of the new Liberty Smart  infrastructure. This is near completion, with a Meter to facilitate adequate testing. Full roll-out of meter installation has  two-stage roll out and trial expected early in the now been rescheduled to commence mid-2014.  New Year. Although greatly enhanced by the

connection of a Smart Meter, Smart Account The other infrastructure elements of the project are progressing well and  offers non-Smart Metered customers e-billing

we now have Local Data Concentrators (LDC) installed in all required  and access to historical information about their substations. We are continuing to install and develop our own wide area  electricity account.

network to communicate with LDCs over the Distribution pilot cable network

and fibre optic network. We have also developed a GPRS solution for  Used in conjunction with a Smart Meter, Smart communication to LDCs in conjunction with our partners, Horstmann and  Account will enable customers to access and Airtel which we are rolling out.  view their electricity consumption data, payment

status, manage their account online and make The Meter Data Management (MDM) warehouse is undergoing final  informed decisions on how they can save energy. testing. Once complete, it will be able to take all the data provided by the  This integrated system promises to transform our new Liberty Smart Meter and receive the data from the existing Horstmann  metering and billing operations as well as create Mainscom Smart Meters. This system will enable Jersey Electricity to be one  new opportunities to add more value to customers of the first utilities to accurately record consumption data and, crucially, use  and, if delivered on time, it could well set the that data to more efficiently operate and maintain our network.  standard for many power utilities.

PROTECTING THE ENVIRONMENTCHIEF EXECUTIVE S REVIEW

PROTECTING THE ENVIRONMENT AND CONSERVING RESOURCES

As a generator, distributor and supplier of

power, our responsibility to the environment is three-fold: first, to act to reduce our impact on the drivers of climate change through our internal business activities, second, to reduce that of our customers by supplying them with low carbon power and, third, to help customers and the Island overall to use energy more efficiently.

January 2013 marked the first delivery of power under our new 10-year supply agreement with EDF that guarantees our imported electricity is generated exclusively from low carbon sources. Although our import capacity is currently limited, this deal will have a favourable impact on our carbon emissions and that of our customers long term, in line with our strategy.

This is evidenced already. From January to

the end of this financial year just under 24%

of our total imports of 551 GWh came from hydro-electric sources compared with a little over 4% last year. Just 1% came from fossil fuel generation compared with over 6% last year, and that remaining 1% was a legacy from the last three months of the previous supply contract.

Our average carbon emission level this year, the international measure of the carbon content of supplied energy, was 225g CO2e / kWh,

a predicted and inevitable rise on previous years but a temporary one reflecting limited importation capacity and therefore increased on-Island generation. Albeit higher than our usual standards, it remains lower than that of locally distributed fossil fuels.

We strive to cut other emissions. EU environmental  legislation is under constant review but we work  to keep abreast of this as part of our ongoing  commitment to environmental best practice. We  work closely with the main European electricity  industry group, Eurelectric, as well as other

small island electricity companies, responding to changes in the EU legislation on Best Available Techniques For Power Stations. We seek to

ensure a sensible, pragmatic, targeted approach

to reducing emissions that not only meets legislation but goes beyond it, so respecting our unique and special island environment.

Voluntarily, we have begun reporting our Green House Gas Emissions in line with the requirements of the Companies Act 2006 (Strategic and Directors' Reports) Regulations 2013. We are using the DEFRA Environmental Reporting Guidelines including mandatory greenhouse gas emissions reporting guidance June 2013 and our assessments are reviewed by an independent third party. The above regulations and reporting guidelines are also compatible with the Kyoto Protocol, which has six reportable Green House Gases;

• Carbon dioxide (CO2)

• Methane (CH4)

• Nitrous oxide (N2O)

• Hydrofluorocarbons (HFCs)

• Perfluorocarbons (PFCs)

• Sulphur hexafluoride (SF6)

The individual quantities of these emissions are converted into a carbon dioxide equivalent,

the standard unit for benchmarking carbon footprints.

ELECTRIC TRANSPORTATION CHIEF EXECUTIVE S REVIEW

The all-electric

BMW i3.

80-100 miles

thanks to the  GREEN LIGHT FOR high-voltage  EV CHARGING POINTS lithium ion

battery. Jersey Electricity has installed

two dedicated EV charging

points in the following St. Helier

multi-storey car parks:

• Sand Street

• Pier Road

• Minden Place

• Green Street

• Patriotic Street

ELECTRIC  St John TRANSPORTATION St Ouen St PeterSt MarySt Lawrence Trinity Grouville St Martin

St Helier

St Saviour

St Brelade

St Clement

We have long been committed to encouraging  Peugeot iOns. This year, the Channel Islands

and facilitating electric transportation in  Co-operative Society has introduced two iOns

Jersey. First, as the next major step to further  and Jersey Post is trialling two all-electric Renault  reducing the Island s overall carbon emissions  Kangoo ZE vans.

and second, as a potential new target for unit  

sales growth importantly, a target that fits our  We have continued to use four Mercedes Smart  ambition to flatten our load curve and exploit the  cars, an iOn, a Nissan Leaf and Kangoo ZE  availability of cheaper overnight power. While  for our own fleet requirements and to actively  

the growth in the use of electric vehicles is very  promote the benefits of electric transport  

much a long-term opportunity, we report good  among the public, politicians and the Island s  progress on putting in place the key enablers.  business community. And once again, there was  

great interest in our EV display at the Jersey  

We finalised the specification of local  International Motor Show in June, where we

connection standards for charging infrastructure  also showcased charging infrastructure, selected  The chargers, manufactured

by Rolec, can accommodate and we established a suitable tariff, branding  electric cars and a range of electric motor bikes.  two cars in adjacent bays and

and marketing collateral. This included the  deliver both a 16Amp and launch of our electric vehicle (EV) owners club  The year also saw the price of EVs fall and more  faster 32Amp charge. Evolve, which provides access to electricity  manufacturers launch new, increasingly efficient

from public chargers, free installation of a  models, including the BMW i3, the VW e-Up

home charger, or both, for a monthly fee. We  and e-Golf and the electric Ford Focus. We

are already seeing uptake of this as private EV  remain confident that EV uptake will continue

ownership starts to increase. an upward trend in Jersey and that electric

transportation remains an area of future growth.

In conjunction with the Minister for Transport  and Technical Services, we opened the first of  our new generation of public EV charging bays  as part of a three-year trial. This was quickly  followed by the installation of a network of  public charging infrastructure across all five   St. Helier multi-storey car parks, at which users  can enjoy on-demand charging as well as  half-price parking. We later installed four more  charging bays at our own Powerhouse retail car  park, making 14 new charging bays in total.

A growing number of fleet users are waking up  

to the economic and environmental benefits of  23 EVs, especially those who see decarbonising

transportation as a key corporate and social

responsibility goal. The States of Jersey led

the way last year with the acquisition of ten

RENEWABLES CHIEF EXECUTIVE S REVIEW

OF OUR RESIDENTIAL CUSTOMERS OF OUR RESIDENTIAL CUSTOMERS

 WERE EITHER SATISFIED OR VERY SATISFIED WERE EITHER SATISFIED OR VERY SATISFIED

 WITH COMFORT LEVELS WITH CUSTOMER/TECHNICAL SUPPORT

CUSTOMER SERVICE STANDARDS

As the sole supplier of electricity in Jersey, meeting our customers present and future needs - and being able to demonstrate this - is of crucial importance. Ultimately, we strive to achieve the optimal trade-off between energy affordability, security and environmental performance - widely referred to as the

 Energy Trilemma . Our ambition is to align the decisions we make affecting these trade-offs as closely as possible with customers needs.

Though we have a highly experienced, dedicated Customer Care Team, which handles the majority of customer enquiries, many other members of staff have contact with customers and other third parties. And, of course, we deal with internal customers, each other, on a daily basis. We have this year introduced a Customer Charter, setting out what customers can expect from their interactions with us. This Charter comprises a clearly defined set of promises and commitments which we expect all staff, across all business areas, to work to.

These include complaint handling and encouraging customer feedback through a variety of channels, including a new and easy-to-use page on our website. We have also reviewed our core business service standards , against which we have previously monitored performance in line with regulated utilities in the UK, to make them more robust and more relevant to the local conditions.

with us, freeing Customer Care staff to work

on more complex issues and more vulnerable members of the community, while also reducing costs. A new telephone payment system and the installation of two automated payment kiosks do both these things while also reducing waiting times for customers.

Our new website launched at the end of last year provides a much improved interface, offering more help and advice on demand. It is part of our preparations for Smart Metering, with specific online customer information

via the Smart Account. Smart Account will transform how we engage with our customers by providing instant access to a wide range

of information about their energy use and enabling them to better manage their accounts. Smart Account will also complement the move to remote prepayment for Pay As You Go customers removing the need to leave home to charge up payment keys .

We continue to use a specialist analytics company to undertake annual market research studies. We established these four years ago to set a baseline assessment of our offer to customers and provide insight on where and how we could improve our services. These studies also show us how we perform against alternative fuels and previous years.

We have worked hard to encourage customers

to use more cost effective channels in their dealings with us. This has led to increased uptake of Direct Debit and electronic billing.

We continue to innovate to encourage

customers to self-help for their simpler dealings

CUSTOMER SERVICE STANDARDS CHIEF EXECUTIVE S REVIEW

Clear investment. Pure energy.

What would you do with £12 a year

off your electricity?

Enjoy £3 off your quarterly electricity bills when you move to electronic bills or statements and pay your bill by Direct Debit. That s £12 every year. Sign up for Direct Debit and ebilling today. The easier - and cheaper - way to pay for your electricity.

To find out more, please call our Customer Care Team on 505460. Lines are open 7.30am to 8pm, Monday to Saturday.

Tel 505460 www.jec.co.uk

The Powerhouse, PO Box 45, Queens Road, St Helier, Jersey, JE4 8NY Telephone: 505460, Fax: 505565, Email: jec@jec.co.uk www.jec.co.uk

Clear investment. Pure energy.

What would you do with £12 a year

OF OUR RESIDENTIAL CUSTOMERS  BUSINESS CUSTOMERS WITH ELECTRIC  off your electricity? WERE EITHER SATISFIELD OF VERY SATISFIEDHEATING RANK THEIR SYSTEMS HIGHER  Embfconhiolrjle ov Dabeyipyrt£ eeoDr3c iet-r oleDwefccefat tbyryDoiotetnuoabir cnipqtd.ba uTiyealhl bsrf atoieotllr rirs lny ys£gotea1utlto2ree  dcemetal reeviyccne.i trtrtTsyyi hc aybeitneyilde.alsar p.sw aiSehyirgey-nnoa yuunoprdu  

WITH RUNNING COSTS THAN CUSTOMERS WITH GAS OR OIL TTMoeaofimnndd oa noy u5t to 0mS5oa4rt e6u ,r0T dpel 505460. alLeyi an. eses acarell oopuer nC 7us.3to0 ma em r  Cto a 8 rep m,

www.jec.co.uk

The Powerhouse, PO Box 45, Queens Road, St Helier, Jersey, JE4 8NY Telephone: 505460, Fax:505565, Email: jec@jec.co.uk www.jec.co.uk

Running costs Customer service and As previous years, of those surveyed, customers  technical support

using electricity as their primary household  

heating source were the most satisfied with the  Similarly, there was little change in the number  running costs of their system with 53% either  of residential customers who were satisfied      

 satisfied or very satisfied . This compares with  with our overall customer service and technical     29% of gas heating users and 26% of oil users  support, with 70% satisfied or very satisfied .      surveyed.    

In the business sector, 51% of respondents said      

electricity was their primary source of energy.     Satisfaction levels ( satisfied or very satisfied )

with regard to running costs of household  Running costs and price stability were the most

heating systems of all three providers fell  determining attributes in ranking an ideal      

in 2012/13 from 2011/12 with more  heating system . I am delighted that for the     householders responding in a more neutral tone  second year in succession business customers

( neither satisfied nor dissatisfied ).  with electricity heating rank

their existing system higher

• 44% of gas heating users were dissatisfied'than customers with gas

or very dissatisfied with running costs in  or oil heating at

2012/13 compared with 39% in 2011/12.  67%, 54% and 59%

respectively.

• 39% of oil heating users were dissatisfied'

or very dissatisfied with their running costs

as compared with 44% a year ago.

• 20% of electricity heating users were

either dissatisfied or very dissatisfied

in 2012/13 as compared with 19% in

2011/12.

Comfort levels

There was no change in the number of residential customers who were satisfied with the comfort levels of their electric heating system, with 78% indicating they were

 satisfied or very satisfied .

The success of our Building Services business in demonstrating energy efficiencies in our own HQ

has led to new workstreams in Building Facilities and Energy Management from several of our large corporate and retail customers (left). This work involved the installation and maintenance of the latest energy efficient heating and lighting systems and controls (below).

Jendev

Business unit Jendev, our Microsoftfi Certified Partner for Dynamics NAV, specialising in software configuration for small utilities, again achieved revenues of over £1m this financial year. The major project for Jersey Electricity continues to be the Smartswitch programme, with preparations being made for the roll out of Smart Meters and integration with Smart Account. This includes automation of the meter change out process, with data being transferred to and from hand held devices in the field.

A data warehouse has also been developed

to enable detailed analysis of electricity consumption at both the Island-wide level and for individual customers.

Jendev continue to provide their services to external clients in Guernsey, the Isle of Man and UK. In the last two years most of these clients have invested in upgrading their systems to the latest version of Microsoft Dynamics NAV, further demonstrating their long-term commitment to both the product and Jendev.

Jersey Energy

Jersey Energy and Channel Design Consultants (CDC) in Guernsey are business units of Jersey Electricity providing Building and Environmental Consultancy services to both private and public sectors in the Channel Islands, offering a wide range of professional design and impartial advisory services.

Jersey Energy and CDC have continued a strong year-on-year sales performance coupled with a healthy return on revenues

in spite of difficult economic trading conditions within the construction sector of the Channel Islands. Performance has been underpinned

by developing the range of commercial

services offered, including thermal imaging, developing energy management (software) tools, to help clients manage their energy

use and 3D modelling carried for a range of complex projects. The business continues to invest in training and technology to provide

a wider range of professional services to its client base. It was successfully shortlisted by the Jersey Construction Council for the Insurance Corporation Consultant of the Year Award .

The service range and its credibility in the market positions the business well for the future, however there remains considerable uncertainty in the Jersey and Guernsey economy as well

as a continued threat from developers using off-Island advisers.

Property

Our Property business comprises the Powerhouse Retail Park, the largest out of St. Helier retail space, as well as legacy residential property, originally built to house staff. This year our efforts have been focused on finding a tenant

for the vacant retail space on the ground floor

of the Powerhouse building, and I am pleased

to be able to report that we are in advanced negotiations with a prospective tenant, a major established UK retailer, new to the Island.

Profit arising from property income, excluding property revaluations, remained at £1.6m.

5,000 customers covering 30,000 accounts

47,000 customer accounts with an annual income of with an annual turnover of  £140 million.

£75.6 million.

HEALTH AND SAFETY

Health and Safety I am delighted to report zero Lost Time Accidents  The Health and Safety Representatives are Technician Milford Lee (LTAs) for the second year in succession. This  appointed champions within operational teams (left)conducts Health and is a remarkable achievement, considering  and fulfil a crucial role in helping create the Safety Induction Training

with new recruits to the nature of our business, the significant and  conditions and culture for safe working among all Building Services diverse operational changes and the hazardous  staff and contractors.

conditions in which our teams operate.

By their nature, our business and its activities pose risks if they are not properly managed. The achievement of two years without an LTA is a credit, not only to the commitment of our Health and Safety Representatives and the Health and Safety Teams but to our entire staff across all business areas, for their care and diligence.

Our commitment to health and safety was further recognised in November by the award of the British Safety Council s prestigious Sword of Honour. This award is only open to organisations from around the world that have achieved the maximum Five Stars in the British Safety Council Audit programme, as we did last year, and is designed to celebrate and recognise health and safety management excellence. Recipients must demonstrate to an independent adjudication

panel a culture of best practice for health, safety and welfare throughout the business from the boardroom to the shop floor .

Our approach is to be flexible and risk based

in the assessment and implementation of health, safety and welfare considerations to minimise complacency and actively address changing situations and needs in the workplace. The Health and Safety Team also monitors key developments, legislation and best practice in areas relevant to us, taking guidance where necessary from the Health and Safety Inspectorate. The team works with senior management to develop strategies for addressing issues in a timely manner.

Every year we produce a health and safety plan that identifies our aims for the coming 12 months and determines how it will fit with our business objectives. Governance is provided by various health and safety committees and includes a forum for direct and unfettered communication between the Chief Executive and the Safety Representatives.

The mobilisation and upgrading of La Collette Power Station to full-time generation necessitated the deployment of over 50 contractors from Switzerland, Portugal and Madeira as well as

the UK and Jersey. Deploying many non-English speaking contractors working in some cases under pressure, at height in a noisy and hot active power station environment presented significant challenges and risks. To mitigate the risks, our Safety Team introduced daily site inspections and we re-deployed one bi-lingual employee to act as translator in all matters relating to safety.

Over 50 staff have attended as many as 15 courses during the year. By training staff in proper processes, risk assessment and awareness, we can mitigate risks and eradicate injuries even at times of extreme activity as we have proved this year.

My thanks go to all staff but particularly our Safety Representatives for their commitment, passion and professionalism in helping Jersey Electricity create such a positive health and safety culture.

HEALTH AND SAFETY CHIEF EXECUTIVE S REVIEW

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35 43 66 21 22 9 45 134 0 0

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SUSTAINABILITY IN THE COMMUNITY

Although we have faced a challenging year, we appreciate that many other organisations in our small community have had their own challenges. It is therefore important that we continue to support the community above

and beyond our business activities on which the community so relies. Efforts to support sustainable initiatives in organisations and charities related to the environment, healthcare and education are our focus.

We continue as corporate sponsors of the National Trust for Jersey, Jersey Heritage, Genuine Jersey and the Jersey Construction Council. In supporting Genuine Jersey we

are supporting local producers and craftsmen who put local, authentic and sustainably produced products and services at the heart

of their enterprises. As sponsors of JeCC Sustainability Award, which was won this year by Morris Architects for their energy efficient refurbishment of the States Housing s Pomme D Or Farm estate, and the Jersey Enterprise Environmental Award, which was won by Jersey Kayak Adventures, we are recognising and rewarding those businesses that strive to preserve and protect our Island environment or that encourage others to do the same.

Protecting species and habitats far beyond

these shores is Durrell with whom we continue a long term relationship. This is the second year of our two-year sponsorship agreement to enable the conservation trust to acquire a further two all-electric John Deere trucks for use by rangers, keepers and landscape maintenance teams.

Helping youngsters develop a greater understanding of electric transportation while learning a new exciting activity is a win-win

for us. So we were delighted to help the Jersey Classic and Modern Trials Club extend its Youth Academy by funding two all-electric trials bikes that have enabled over 30 youngsters, some

as young as four, to get their first taste of this challenging sport.

Healthcare associated charities to receive our support this year include Jersey Hospice Care, Teenage Cancer Trust, After Breast Cancer Care, Headway, Macmillan Jersey, Urology Foundation, Cancer Research, Jersey Oncology Unit and, of course, Family Nursing and Homecare to whom we make an annual gift of much needed equipment from funds saved by not sending corporate Christmas cards.

We have also continued to support Jersey Trees For Life Forgotten Forest project to restore an arboretum from a fund set up with donations we made to encourage customers to take up more environmentally acceptable electronic billing. We have also supported the Jersey Shelter Trust, Barnardos and the Jubilee Sailing Trust.

Lastly, as a significant employer of technical engineering skills, we support our schools and students through Trident, Advance To Work, Undergraduate Work Experience and our

own Apprentice Scheme. The Jersey Electricity Bursary Award Scheme is an extension of

our commitment to the Island s youth and the development of local professional engineering capabilities.

Meeting our responsibilities, professionally and socially, over the long term means investing in our people, our community, our environment and our business and that means sustainable business.

SUSTAINABILITY IN THE COMMUNITYCHIEF EXECUTIVE S REVIEW

Top Clockwise:  

Jersey Trials Club Youth

Academy, Family Nursing

and Homecare, Jersey

Beekeepers Association,     Jersey Enterprise

the Challenge Marite,

    Council Sustainability

Environmental Award, Jersey Construction

Award, Jersey Hospice Swimarathon.