News

GUERNSEY Electricity has recorded its best year’s trading since commercialisation, with pre-tax profits of nearly £1.5 million and a dividend to the States of more than £300,000.

The company’s 2004/5 Annual Report shows that in the 12 months to 31 March 2005 pre-tax profits rose by 5.8% on the previous year, despite there being no increase in customer tariffs. Local electricity prices have now remained static since 1992, resulting in a 40% reduction in real terms.

Chairman Ken Gregson said that that as well as increasing profits, the company had recorded significant improvements in all areas of the business.

‘Our financial results, service standards, reliability, key performance indicators, and Health & Safety statistics all showed significant improvement and contributed to what was an excellent year,’ he said.

‘There is a real service culture within Guernsey Electricity, and a shared aim to build on past achievements. We aim to deliver a secure, reliable and safe electricity supply, at the lowest possible price. That is what we have done consistently since commercialisation, and it is what we will continue to do in the future.’

The £306,000 paid to the Treasury & Resources Department was Guernsey Electricity‘s largest dividend payment since the company was commercialised in February 2002. It brings the total paid to the States in the past three years to £817,000.

Managing director Ian Watson said the financial performance was better than expected, and reflected the company’s excellent control of costs.

Actual electricity sales were up 3.4% on 2003/4. Mr Watson said the higher consumption was largely due to a combination of increases in the number of local households and changes to usage patterns. Although the average cost per unit fell slightly, overall turnover rose by 3.5% to £27.8 million.

Mr Watson said the company’s staff could look on the performance with considerable pride.

‘They have risen to the challenge of building on the success of Guernsey Electricity since commercialisation and it is a tribute to them that we have achieved so much in such a short time. Our main focus now is to continue that development, and ensure we continue to serve the island as best we can,’ he said.

Mr Gregson said Health & Safety was also a key priority for the company, and accidents at work had fallen by 85% since 1991.

Service standards were also better. Compared to the previous 12 months, Guernsey Electricity recorded improvements in three areas and fared only slightly worse in one. Overall, the company scored 99% or more in all but two of its 20 key performance indicators, and achieved a 100% record in 13.

The island also has one of the most reliable electricity supplies in the world. The average customer minutes lost, which is the industry’s measure of reliability, was just 15 in 2004/5.

The last published statistic for the UK, which in the past has had one of the most reliable supplies in Europe (Source: European Commission), showed an average of 81 minutes (Source: OFGEM).

Mr Watson said the company invested a further £975,000 in the network infrastructure, to further ensure reliability for customers. It was also continuing to explore new technology wherever this could deliver real benefits to customers.

Marine Current Turbines, the UK company which Guernsey Electricity owns a minority stake in, has continued to make good progress in developing a viable tidal power technology. And a project to install new automated metering in every home and business in the island was also named Best AMR Initiative in Europe at an international awards ceremony.

More than 84% of the island’s electricity was supplied via the cable link, which Mr Gregson said had protected customers against rising world energy costs. However he also warned that future price rises were inevitable.

‘We are fortunate to be taking advantage of the three year contract with Electricite de France, which has fixed our current import price considerably below world energy prices. However our purchase costs will inevitably increase when this deal expires in November,’ he said.

‘Nevertheless we remain committed to ensuring that the island has the most reliable, secure electricity supply and the greatest value for money.’

Key performance statistics