The company reported an operating loss of £7.8m for the year, before pension settlement gains, compared with £1.2m in 2017/18. The loss includes £3.4m of non-cash impairments of assets associated with the importation of electricity. Over the period £11.4m of cash was re-invested back into business activities, which represents an increase of £3m from the previous year. The company continues to benefit from a strong balance sheet with a fixed asset base of £133.9m.
Alan Bates, Chief Executive Officer of Guernsey Electricity, said the past year had been challenging in many respects but Guernsey Electricity had performed credibly.
“The costs of initially repairing and then replacing GJ1 and utilising the power station for 12 months, along with the impact of Brexit on our foreign exchange dealings, has affected us significantly. We have however, overall, achieved a commendable underlying result which has seen bold decisions taken for the long term benefit of the company and Guernsey.”
Mr Bates added, “Despite the impact of the recent cable issues, our underlying financial performance continues to fall significantly below the level required to fund necessary investments in the Island’s electricity infrastructure and this remains an important issue as we plan for the future.
“In addition to recovering today’s costs, we anticipate an increase in renewable self-generation and storage as technology develops and we need to facilitate this in a fair way for all islanders. While customers use less electricity from the grid, a large proportion of our costs to maintain the grid as back-up supply will remain fixed and unaffected by the reduced amount of electricity used.
“Our current tariff structures, which have been in place since 1993, are not fit for this future and therefore, need to be comprehensively restructured to allow for infrastructure investments and to meet the changing energy needs and behaviours of our customers. This will be a priority for us in 2020.”
Other highlights from the financial statements are a pension fund transfer to the States of Guernsey Combined Pool to reduce the risks of pension provision and generate a book accounting gain of £18.2m. There has also been a 2.2% decrease in electricity usage locally which reduced sales by £1.6m, attributed to improvements in energy efficiency in appliances and in buildings, as well as milder weather.
To review Guernsey Electricity’s 2018/19 annual report and accounts please visit: www.gov.gg/article/175021/The-Guernsey-Electricity-Limited-Annual-Report-and-Accounts
