2000 - 20012004 - 2005
Overview
Commercialisation of the undertaking continues to give us the flexibility to adopt practices and measures that improve upon the already high standards that we inherited. We do have a monopoly in the generation, import and distribution of electricity, but we aim to deliver a product that is secure, reliable, safe and at the lowest price which is consistent with the maintenance of a sound infrastructure, both now and in the future.
To achieve these ideals, we are constantly looking to improve in all areas of our performance and to make continuing progress in a challenging environment. I am, therefore, very pleased to report an excellent outcome for the year ended 31st March 2005. Our Financial Results, Service Standards, Key Performance Indicators and Health and Safety statistics, all confirm that this was a successful year. Once again, there was no increase in electricity prices, so that the cost to our customers again fell in real terms and this in a world of escalating energy prices. We are fortunate to be in a position where we are taking advantage of the latter end of a three-year contract with Electricité de France (EdF), which will continue to protect us until 30th November of this year. Within this contract our current import price is considerably below world energy prices. It is, therefore, inevitable that from 1st December 2005 our purchase cost of electricity will increase and it follows that our selling price to our customers will also, unfortunately, have to increase. However, the import/generation cost is but one constituent within our cost base and this will mitigate the impact upon tariffs.
Automatic Meter Reading (AMR)
As a company, Guernsey Electricity has a
culture of good service that runs right
throughout the organisation. We are
therefore always looking for improvements
that can benefit our customers and to this
end I am pleased to report that we made
considerable progress over the past year in
our automated meter reading (AMR)
project. Our achievements in this area
received independent recognition in early
2005, with an international award for
Best AMR Initiative in Europe.
The contract with Ampy, our partners in the project, is signed and we have now begun to roll out this technology island-wide. It will be of considerable benefit to customers, marking the end of estimated accounts and the need for meter readers to enter customer premises. It will also enable smooth transitions when customers are moving house and provide detailed information that will be invaluable both to the company and our customers in helping to plan our distribution network.
To date, we have installed AMR meters in more than 2,500 customer premises and we now plan a four-year roll-out period for the rest of the Island.
Marine Current Turbines
In early 2004, Guernsey Electricity made an equity investment in Marine Current Turbines Limited (MCT), a UK-based company behind pioneering research into tidal power generation. The primary objective was to ensure we have full access to all the latest information on this state-ofthe- art technology.
Guernsey Electricity had previously been looking at several different technologies, to identify which form of renewable energy would be appropriate for the island and could meet its future needs. It is recognition of our environmental responsibilities, which the company takes very seriously.
Since the investment, MCT has undergone significant expansion and made major progress in developing a 1,000 kilowatt twin rotor machine. The project has received significant support from the UK government, with a grant of approximately £4 million towards its overall £8 million cost. The machine is now expected to commence build later this year, with installation in 2006.
It is still too early to say when we could expect to see such technology deployed in local waters. However Guernsey Electricity Limited remains very optimistic that tidal power will be part of the Island's future electricity generation mix.
Developing Our Network
Guernsey Electricity has continued to invest in its network infrastructure to further ensure the reliability of supply to our customers.
This included the commissioning of a new 33,000 volt bulk supply point at Belgreve, which is already feeding the major developments at Admiral Park and has significant capacity available for other developments in the area.
A new 33,000 volt switchroom has also been commissioned at the Vale Power Station. This is in addition to the present one, which is now 25 years old and will enable the company to create a technically and physically diverse 33,000 volt system. It also allows for greater resilience, with certain generators being reconnected to the new switchboard.
New primary 11,000 volt substations have also been constructed at La Villiaze, Royal Gardens and Passiflora. In addition, the two new 11,000 volt cables previously laid between the Saumarez Park and Kings Mills primary substations were brought into service during the year. These have replaced an old pair, which had become fault-prone and also provide additional capacity into the south western area of the Island.
During the year, the company changed from using the paper insulated, lead covered three core cables that are the backbone of our existing 11,000 volt network. By using single core, cross-linked polyethylene insulated cables, which are standard across the UK, we are now able to benefit from quicker and easier installation and slightly reduced costs.
Guernsey Electricity has continued to develop its maintenance techniques, both to control costs and improve reliability. A notable success this year has been the widespread use of an ultrasound system that can detect the early symptoms of breakdown in high voltage cable terminations.This enables repairs to be carried out before a failure occurs and therefore prevent the associated loss of service to customers.