JERSEY ELECTRICITY Plc       

LEI: 213800JPIP5BZKFOHK40

Interim Report

For six months ended 31 March 2026

The Board approved at a meeting on 12 June 2026 the Interim Management Report for the six months ended 31 March 2026 and declared an interim dividend of 9.26p compared to 8.82p for 2024/25. The dividend will be paid on 10 July 2026 to those shareholders registered in the records of the Company at the close of business on 26 June 2026.

The Interim Management Report is attached and will be available to the public on the Company's website www.jec.co.uk/investors. 

The Interim Management Report for 2026 has not been audited, or reviewed, by our external auditors, nor have the results for the equivalent period in 2025. The results for the year ended 30 September 2025 were extracted from the statutory accounts. The auditor has reported on those accounts, and their report was unmodified.   

C.J.Ambler                                                                                              

Chief Executive Officer                                                                         

Enquiries:

Non Owen, Company Secretary

[email protected]

Tel: 01534 505386

12 June 2026

The Powerhouse, 

PO Box 45, 

Queen's Road, 

St Helier, 

Jersey JE4 8NY  

Directors' Statement

Jersey Electricity Plc ("JE" or the "Group") delivered a solid set of operational and financial results for the six‑month period ended 31 March 2026, underpinned by disciplined execution of its strategic investment programme, effective energy procurement and hedging, and continued focus on operational resilience.

Financial Highlights

Group revenue for the first half of FY26 increased by 1.3% to £83.4m (H1 FY25: £82.3m), driven primarily by increased revenue in the Energy business. Profit before tax of £10.0m was broadly in line with the prior year (£10.5m). Cost of sales remained stable year on year, while operating costs increased, reflecting higher levels of operational activity associated with the delivery of the Group's strategic programmes and technology projects.

Operational Performance

In FY24, the Group initiated a strategic investment programme, allocating £180m over five years to enhance the electricity network, strengthen resilience and support the Island's long‑term transition to low‑carbon energy. The programme comprises three core elements: The Big Upgrade, with £120m allocated to modernise and reinforce the electricity network and prepare it for forecast growth in peak demand; a £30m Supply Security and Resilience programme, centred on the La Collette Resilience Programme; and a £30m programme securing access to Long Term Green, Clean Energy encompassing the Solar 5000 strategy, fuel‑switching support for customers and renewal of the electricity importation contract.

Building on strong progress delivered during FY25, the first half of FY26 has seen momentum established across all three programmes. The Big Upgrade remains on schedule, with investment deployed in a targeted manner using smart metering data to identify capacity‑constrained infrastructure and optimise reinforcement activity. Progress has also been made with the replacement of the N2 subsea cable, with the tender at Best and Final Offer stage and contract award planned for summer 2026.

The La Collette Resilience Programme continues to advance following completion of the first phase of the project and the safe demolition of the 50 year old steam turbines in FY25. The tender process to procure replacement gas turbines has confirmed a somewhat constrained global market in these assets, which the Company is reviewing.

Delivery of the Solar 5000 renewables programme has continued, with the Rue d'Olive ground‑mounted solar array now operational and the Sorel array scheduled for commissioning in mid‑Summer 2026. Together, these assets bring the programme close to 50% of its ground‑mounted target. The remaining ground programme has attracted public interest and was debated in the States Assembly. The Group welcomes that engagement and looks forward to working constructively with the incoming Government to agree a way forward following the June 2026 elections. Rooftop solar installations at the Airport Cargo Centre and St Clement Parish Hall have also been completed and are performing well. Fuel‑switching activity has continued to gain momentum, supported by the Group's "heat pump first" approach and Government incentives. The Company also initiated and supported the launch of a new Green Skills Academy (GSA), a programme with Government of Jersey's Highlands College, that will see 36 apprentices trained and providing modern, trade skills into the market. The support for fuel switching and the GSA has been well received by customers, contractors and Government.

Peak system demand during the period was 163MW. Customer Minutes Lost remained very strong by international standards, at a level below seven minutes.

Wholesale Energy Markets, Hedging and Customer Tariffs

How we source electricity

Approximately 95% of the Group's electricity is imported from France, under a long‑term supply agreement with EDF (Électricité de France) that runs to December 2027. Electricity is purchased in euros under a structured arrangement combining elements of fixed pricing with the ability to hedge forward purchases over a rolling three‑year horizon. Movements in wholesale electricity markets and foreign exchange rates therefore represent key drivers of the Group's cost base, with exposure actively managed through energy and foreign exchange hedging strategies.

Market environment

European energy markets experienced extreme volatility during 2022, following Russia's invasion of Ukraine and the associated disruption to gas supply across the continent. Forward wholesale electricity prices rose to unprecedented levels before easing from 2023 as supply conditions improved and demand moderated. The Company's hedging strategy was able to shelter customers from much of this volatility over this period.

During 2024 and into early 2026, wholesale electricity markets have continued to stabilise, with three‑year forward prices typically trading in the €50/MWh to €60/MWh range.

France generates the majority of its electricity from nuclear power, one of the lowest‑cost and lowest‑carbon sources available, and is rapidly expanding its renewable capacity. This means that when fossil fuel prices spike due to geopolitical events, such as the ongoing conflict in the Middle East, the knock‑on effect on French power prices is more limited than in markets heavily reliant on gas‑fired generation.

That said, short‑term volatility remains a feature of energy markets and we continue to monitor conditions very closely particularly in respect of the period beyond the end of the current contract. Our hedging programme is designed to ensure access to electricity supplies whilst at the same time, protect the business and ultimately our customers from sudden adverse price movements.

Our hedging position

As at 31 March 2026, the Group is substantially hedged across its forward electricity purchase requirements through to December 2027. Near‑term electricity purchases, to end of December 2026, are fully hedged.

Foreign exchange exposure arising from euro‑denominated electricity purchases is managed through hedging arrangements, gradually locking in sterling‑euro exchange rates to increase cost certainty and support forward tariff planning.

New long-term supply agreement

We have made progress with and are in the final stages of negotiating a new long‑term supply agreement, securing reliable energy imports through to 2031, with an embedded option to extend on the same structure.

Planning beyond 2027

JE continues to monitor wholesale markets closely, with particular attention to developments in the Middle East, and has put in place a financial hedging facility that enables the execution of swap contracts to manage price exposure.

Looking beyond December 2027, this supports a rolling hedge strategy using financial swap contracts to fix wholesale electricity prices independently of the physical supply arrangement, underpinned by appropriate trading facilities and ongoing market oversight. Initial hedges for calendar years 2028 and 2029 have already been executed, securing a material proportion of forecast demand for 2028 and a smaller proportion for 2029, providing early visibility and mitigation of forward price risk.

Customer Tariffs

Following a 2.5% tariff increase on 1 March 2026, our retail electricity prices continue to compare favourably with other jurisdictions. Residential power prices in Jersey remain materially lower than comparable UK levels, primarily reflecting the benefit of lower wholesale electricity costs in France, combined with the Group's hedging programme, alongside continued fuel switching to electricity and disciplined cost management.

Financial Performance

Energy Performance

Electricity unit sales decreased by 2.7% to 355.5 million units (H1 FY25: 365.5 million units), reflecting milder weather conditions compared with the prior year.

Revenue in the Energy business increased by £0.7m to £69.0m, driven primarily by the impact of tariff increases implemented in January 2025 and March 2026, together with tariff mix effects. Operating profit of £10.4m was £0.1m higher than the prior year, reflecting increased operating efficiency.

Non-Energy performance

Trading conditions across the Group's non‑Energy activities remained challenging. The Powerhouse retail business experienced a small reduction in profit of £0.02m. The profit of the Group's property portfolio decreased by £0.4m during the period, reflecting market conditions. Other business segments reported an increased loss of £0.2m, driven by continued investment in technology capability and lower‑ than‑anticipated sales volumes.

Liquidity and cashflow

Net cash on the balance sheet at 31 March 2026 was £2.8m compared with £8.5m at this time last year. Cash and cash equivalents of £32.8m are offset by £30.0m of long‑term debt. The reduction reflects increased capital investment in the delivery of the Group's strategic programmes. The Group is in the process of securing additional debt facilities to support its longer‑term strategic capital investment requirements.

Pension scheme

The Group operates a defined benefit pension scheme, which is closed to new members. The defined benefit pension scheme surplus under IFRS 19 (before deferred tax) at 31 March 2026 was £29.2m, compared with a surplus of £27.3m at 30 September 2025. Net of deferred tax, the surplus increased by £1.6m during the period, reflecting movements in scheme assets and liabilities. Scheme assets decreased by £0.7m to £109.0m and scheme liabilities decreased by £2.6m to £79.8m over the period.

Dividends

The Board has declared an interim dividend of 9.26 pence per ordinary share (H1 FY25: 8.82 pence), representing an increase of 5% on the prior year interim dividend. The final dividend for FY25 of 12.60 pence per share was paid on 13 March 2026.

Risk and Outlook

The Group's overall risk profile has remained broadly stable during the period. A full description of the Group's risk management framework and principal risks is set out in the Annual Report and Accounts for the year ended 30 September 2025. Health, safety, the environment and cyber security remain the Group's highest‑rated risks. The Group continues to strengthen controls and oversight in these areas to reduce exposure and mitigate the consequences of any serious incident.

The pace of technological change within the electricity sector is assessed as inherently critical to the Group's long‑term sustainability. The accelerating adoption of electric vehicles, heat pumps and rooftop solar generation continues to reshape how electricity is generated, distributed and consumed across the network. Managing this transition effectively remains a central consideration within the Group's strategic planning.

The ongoing conflict in the Middle East remains on the Board's watch list. However, as noted in the Wholesale Energy Markets section above, the direct impact on Jersey Electricity has to date been limited. France's reliance on nuclear rather than gas‑fired generation, together with the Group's hedged electricity procurement position, has provided a degree of insulation from the volatility experienced elsewhere in energy markets. Broader macroeconomic uncertainty, including inflationary pressures affecting capital and operating costs, continues to be monitored through the Group's regular risk reporting and strategic planning processes.

Going Concern

The Directors have assessed the Group's financial position, available resources, and the principal risks and uncertainties set out above. The Group has cash and cash equivalents of £32.8m, a robust hedged energy procurement position through to December 2027, and a stable trading performance. In addition, the Company is in the process of securing additional debt facilities to support the delivery of its longerterm strategic capital programme.

On the basis of this assessment, the Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for at least 12 months from the date of approval of these interim financial statements. Accordingly, the interim financial statements have been prepared on a going concern basis.

Related Party Transactions

The Government of Jersey is understood by the Directors to have significant influence but not control of the Company. While the Government holds the majority of the Company's voting rights, it does not consolidate the Company within its group accounts.

The Company has elected to apply the exemption available under IAS 24 paragraphs 25 and 26 in respect of transactions with the Government and other Government‑related entities. All such transactions are carried out on an arm's‑length basis and in the ordinary course of business.

There were no related party transactions during the period, outside those with the Government and Government‑related entities, that require disclosure under DTR 4.2.8R. There have been no changes to related party arrangements disclosed in the Annual Report and Accounts for the year ended 30 September 2025 that would be expected to have a material effect on the Group's financial position or performance in the second half of the financial year.

Responsibility Statement

We confirm to the best of our knowledge:

·      the interim consolidated financial statements have been prepared in accordance with IAS 34 'Interim Financial Reporting' as issued by the International Accounting Standards Board (IASB) and give a true and fair view of the assets, liabilities, financial position and profit of the Group for the six months ended 31 March 2026.

·      the Interim Directors' Statement includes a fair review of the information required by DTR 4.2.7R (an indication of important events during the first six months of the financial year and their impact on the condensed financial statements, and a description of the principal risks and uncertainties for the remaining six months of the financial year) and give a true and fair view of the assets, liabilities, financial position and profit of the Group for the six months ended 31 March 2026; and

·      the Interim Directors' Statement includes a fair review of the information required by DTR 4.2.8R (disclosure of related party transactions and material changes therein).

These interim consolidated financial statements have not been audited or reviewed by the Company's independent auditors, PricewaterhouseCoopers CI LLP.

This interim report contains certain forward‑looking statements. By their nature, forward‑looking statements involve risk and uncertainty because they relate to future events and circumstances. Actual outcomes may differ materially from those expressed or implied. The forward looking statements reflect knowledge and information available at the date of preparation of this report. The Company undertakes no obligation to update forward looking statements. Nothing in this report should be construed as a profit forecast

C.J. AMBLER - Chief Executive                                                                                                                                                   

12 June 2026

Interim Consolidated Income Statement (Unaudited)

Interim Consolidated Statement of Comprehensive Income (Unaudited)

Interim Consolidated Balance Sheet (Unaudited)

Interim Consolidated Statement of Changes in Equity (Unaudited)

Interim Consolidated Cash Flow Statement (Unaudited)

Of the £32.8m cash and cash equivalents at 31 March 2026, £28.0m is on fixed term deposits, with an average of 109 days remaining. On 30th September 2025 this was £28.0m with an average of 116 days remaining, whilst on 31st March 2025 the figure was £35.0m with an average of 53 days remaining.

Notes to the Condensed Interim Accounts (Unaudited)

1               Accounting policies

Basis of preparation

 The interim accounts for the six months ended 31 March 2026 have been prepared based on the accounting policies set out in the 30 September 2025 annual report and accounts using accounting policies consistent with International Financial Reporting Standards (IFRS) as adopted by the EU and in accordance with IAS 34 'Interim Financial Reporting'. There have been no changes to accounting standards during the current financial period that has impacted the disclosures in these financial statements and the full year financial statements that will be prepared for 30 September 2026.

Jersey Electricity Plc has considerable financial resources and, consequently, the directors believe that the Group is well placed to manage its business risks successfully despite the current uncertain economic outlook. The directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. Thus, they continue to adopt the going concern basis of accounting in preparing the annual financial statements.

2          Business Segments

The contributions of the various activities of the Group to turnover and profit are listed below:

*Other segment includes Jersey Energy, Jendev as well as Jersey Deep Freeze Limited, the Company's sole subsidiary.

Materially, all the Group's operations are conducted within the Channel Islands. All transfers between divisions are on an arm's length basis. Gains or losses resulting from the revaluation of investment properties is shown separately from Property operating profit.

Revenues disclosed by the business segments above are recognised both on a point in time and over time basis. The treatment of revenue recognition in accordance with IFRS 15 is detailed in the 30 September 2025 annual report.

3 Dividends paid and proposed

The distribution to equity holders in respect of the final dividend for 2025 of £3,859,644 (12.60p net of tax per share) was paid on 13 March 2026. The Directors have declared an interim dividend of 9.26p per share, net of tax (2025: 8.82p) for the six months ended 31 March 2026 to shareholders on the register at the close of business on 26 June 2026. This dividend was approved by the Board on 12 June 2026 and has not been included as a liability at 31 March 2026.

4 Pensions

In consultation with the independent actuaries to the scheme, the valuation of the pension scheme assets and liabilities has been updated to reflect current market discount rates, inflation, salary increases, pension increases, post-retirement mortality, current market values of investments and actual investment returns applicable under IAS 19 'Employee Benefits', and also consideration has been given as to whether there have been any other events that would significantly affect the pension liabilities.

5 Financial Instruments

The Group held the following derivative contracts, classified as level 2 financial instruments at 31 March 2026.

All financial instruments for which fair value is recognised or disclosed are categorised within the fair value hierarchy. This hierarchy is based on the underlying assumptions used to determine the fair value measurement as a whole and is categorised as follows:

Level 1 - financial instruments are those with values that are immediately comparable to quoted (unadjusted) market prices in active markets for identical assets or liabilities.

Level 2 - financial instruments are those with values that are determined using valuation techniques for which the basic assumptions used to calculate fair value are directly or indirectly observable (such as readily available market prices).

Level 3 - financial instruments are shown at values that are determined by assumptions that are not based on observable market data (unobservable inputs).

6 Related Party Transactions

 The Government of Jersey (the "Government") treats the Company as a strategic investment. Whilst it holds the majority voting rights in the Company, the Government does not view the Company as being under its control and as such, it is not consolidated within the Government accounts. The Government is understood by the Directors to have significant influence but not control of the Company.

The Company has elected to take advantage of the disclosure exemptions available in IAS 24, paragraphs 25 and 26.  All transactions are undertaken on an arms-length basis in the ordinary course of business.