Jersey Electricity PLC

Inspiring a zero-

carbon future

Annual Report and Accounts 2025

Annual Report and Accounts 2025

Jersey Electricity

Financial statements

Governance

Strategy

Contents

At Jersey Electricity (‘the Company’), we are committed to delivering energy

that is safe, reliable, sustainable and affordable to our Island community.

Safety

is at the heart of our operations,

protecting our employees, customers

and the wider community.

Reliability

ensures homes and

businesses have the energy they

need, every day.

Sustainability

drives our investment in

low-carbon technologies and shapes

how we manage our energy network .

Affordability

ensures our services

remain accessible and competitively

priced for all.

Strategy

Chair’s review

Chief Executive’s review

Purpose, vision and values

Our performance

Understanding our stakeholders

Sustainability

JE Energy

Accelerating solar deployment

Health, safety and wellbeing

JE Home & Business

Electric mobility

Other businesses

JE Technology

Financial review

Group risk management

Climate-related disclosures

Governance

Board of Directors

Directors’ report for the year

ended 30 September 2025

Nominations Committee

100

Audit and Risk Committee

104

Remuneration Committee

108

Financial statements

Independent Auditor’s Report

to the members of Jersey Electricity plc

114

Consolidated Income Statement

119

Consolidated Statement of Comprehensive Income

120

Consolidated Balance Sheet

121

Consolidated Statement of Changes in Equity

122

Consolidated Statement of Cash Flows

123

Notes to the Consolidated Statements

124

Five Year Group Summary

149

Alternative performance measures

150

Financial calendar

151

Shareholder information

152

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Jersey Electricity

Annual Report and Accounts 2025

Jersey Electricity

Financial statements

Governance

Strategy

Phil Austin MBE leads a Board comprising experienced

Executive and independent Non-Executive Directors.

Together, they provide strategic direction and strong

corporate governance to ensure the long-term success

and sustainability of the Company.

Strategic investment:

Powering Jersey’s net‑zero transition

Following the celebration of our centenary in 2024, 2025 has been a year of

continued investment and progress. The year began with a centenary stakeholder

dinner, attended by a cross-section of employees, pensioners, suppliers, partners

and Government representatives, marking both a celebration of the Company’s

heritage and a shared commitment to Jersey’s energy future. It set a fitting tone

for a year defined by collaboration, ambition and progress.

It has also been a demanding period, reflecting our sustained focus on building a

modern, efficient and resilient energy system for the Island’s future. Our ambition

remains clear: to accelerate Jersey’s transition to net zero while delivering secure,

reliable, sustainable and affordable energy for all customers. Progress has been

evident across the business. We have strengthened network reliability and net zero

readiness, invested in new skills and technologies, and deepened collaboration

with Government, stakeholders and the wider community to advance the Island’s

sustainability goals.

Chair’s review

In 2025, Jersey Electricity has

demonstrated how innovation,

strategic investment and sustainable

growth can power a resilient future.

By embracing new technologies

and strengthening our infrastructure,

we continue to deliver value for our

stakeholders while advancing Jersey’s

journey towards a low-carbon, secure

energy system

GROUP REVENUE

£146.2m

FY24: £135.7m

PROFIT BEFORE TAX

£14.2m

FY24: £15.1m

Jersey Electricity

Annual Report and Accounts 2025

Jersey Electricity

Financial statements

Governance

Strategy

During the year, we reached key milestones on three major

initiatives central to our long-term strategy. The Big Upgrade,

our £120m programme to modernise and reinforce Jersey’s

electricity network, remains on schedule, replacing ageing

assets, increasing capacity and preparing the grid for an

all-electric future.

In parallel, the £30m La Collette Resilience Programme

has continued to enhance on-Island backup generation,

improving the resilience of Jersey’s energy supply.

Commissioning the St Clement Solar Farm in spring 2025

marked a significant milestone: the Island’s first utility-scale

renewable generation project. This development represents

an important step towards energy independence and lays

the groundwork for further renewable growth.

Together, these projects demonstrate Jersey Electricity’s

long-term commitment to strategic investment, operational

excellence and responsible leadership. Our approach

balances the need for infrastructure modernisation with

affordability and environmental responsibility, ensuring

sustainable benefits for customers, shareholders and

the Island.

Performance

The Group delivered a solid performance in 2025,

underpinned by disciplined management and continued

investment. The easing of wholesale electricity markets

provided some relief, and we welcome a period of relative

stability in wholesale energy prices after several years of

severe volatility.

Revenue increased to £146.2m, up 8% on the prior year,

driven by steady unit sales growth and the continued

transition to electric heating and transport. Profit before

tax was £14.2m, lower than the previous year primarily due

to the revaluation of the property portfolio and a one-off

past service pension liability.

Our Energy business achieved a 6.4% return on assets,

maintaining robust performance on a five-year rolling basis.

Other divisions performed in line with expectations.

We remain well positioned for the future, with a strong

balance sheet, clear strategic direction and demonstrable

progress against our long-term objectives. The current

pricing structure continues to offer good value and stability

for customers while supporting the investment required to

deliver Jersey’s energy transition.

The Board has recommended a final dividend of 20.82p per

share, an increase of 5% on the previous year, payable on

13 March 2026. This reflects our solid financial position and

ongoing commitment to sustaining shareholder value,

while investing at record levels in Jersey’s energy future.

As we look ahead, our focus remains clear: to lead Jersey’s

transition to a net zero future with responsibility, foresight

and purpose. We are building not only an energy system,

but a legacy of reliability and sustainability for our Island.

Corporate governance

Strong governance is central to our success. The Board

is committed to the highest standards of corporate

governance, ensuring all innovation and investment activity

is delivered responsibly, transparently and in line with

stakeholder expectations.

In accordance with the UK Corporate Governance Code

2018, the Board identified two key areas of focus for FY25:

Progress towards Jersey’s net zero goal while further

reducing our own carbon footprint.

Support customers through energy efficiency initiatives,

ensuring our services remain safe, reliable, affordable

and sustainable.

You can read about the good progress we have made in

both areas on pages 32 to 35.

The Board determined its key areas of focus for FY26

as follows:

Continue to ensure secure, resilient, affordable and clean

electricity supply for Jersey, investing in core infrastructure

to underpin economic growth and meet the needs of

current and future customers.

Provide oversight on our major infrastructure projects

– the Big Upgrade, La Colette Resilience Programme,

the Normandie 2 submarine cable replacement and,

internally, the Smart Upgrade, the Enterprise Resource

Planning (ERP) project, with particular emphasis on

resource management and cost control.

Board changes

In October 2024, we welcomed two new independent

Non-Executive Directors, Iman Hill and Roger Blundell, whose

expertise further strengthens the Board as it oversees the

Company’s delivery and strategic programme.

During the year, Lynne Fulton, Chief Financial Officer, stepped

down from the Board and will leave the Company in February.

On behalf of my colleagues, I extend our sincere thanks to

Lynne for her contribution and wish her every success in

the future. The search for her successor is underway, and the

Board is focused on appointing a candidate who will

continue to strengthen the Company’s financial leadership

and support our long-term strategic objectives.

As part of our succession process, I am delighted to announce

the appointment of Paul Savery as a Non-Executive Director,

effective 1 December 2025. Paul brings extensive director

experience and a strong commercial background, which

will be invaluable in supporting our continued growth and

strategic direction.

I would also like to express my appreciation to my fellow

Directors, the leadership team and all employees across

the Group. Their professionalism, commitment and integrity

help drive our progress and underpin our success.

Summary

2025 has been a defining year for Jersey Electricity,

one that demonstrates how disciplined investment,

sound management and responsible innovation can

deliver resilience and progress. We have strengthened

our foundations, advanced key strategic projects and

maintained strong financial performance while upholding

our responsibilities to customers, shareholders and

the community.

As we look ahead to FY26 and beyond, the Board remains

confident in the Company’s direction and its ability to lead

Jersey’s energy transition with responsibility, foresight

and purpose.

Phil Austin MBE

Chair

Chair’s review

(continued)

Our commitment to innovation

and investment is about more

than strengthening today’s network,

it’s ensuring Jersey has the secure,

sustainable energy infrastructure

it needs for generations to come.

Jersey Electricity

Annual Report and Accounts 2025

Jersey Electricity

Financial statements

Governance

Strategy

Foundations for sustainable growth

In a year defined by the scaling up of investment behind a new business plan, we

have taken significant steps to establish new foundations, structures and processes

that will help us deliver safe, reliable, affordable and sustainable power.

Our business is already delivering strong operational outcomes and these new

foundations provide a platform to support our customers, shareholders and

community while contributing to the Island’s net zero ambitions.

The challenge of decarbonising Jersey is significant if we are to achieve it while

also maintaining safety, affordability and security. Our commitment to sustainability

is driving investment across every part of our business, from grid modernisation

and the integration of renewables to customer solutions, digitalisation and

technology innovation.

The progress outlined in this report is testament to the efforts of our team who have

collectively embraced the need for change – to be more focused on customers

than ever before, and to do so efficiently and innovatively.

Their dedication and expertise are the cornerstone of this year’s achievements,

and I thank our whole team for this.

Strategic priorities

We have made solid progress this year, further developing our planning process

which has led to our most ambitious business plan yet. This has provided a north

star to guide our business activities, and a real cadence around our headline

projects. We have seen encouraging progress, marked by improving performance

alongside foundation-setting for the future.

Chief Executive’s review

In a year defined by a scaling up of

investment, significant steps have been

taken to ensure solid foundations,

structures and processes are in place

to deliver safe, reliable, affordable and

sustainable power.

ENERGY

REVENUE

£118.4m

FY24: £108.1m

ENERGY

BUSINESS PROFIT

£12.7m

FY24: £13.0m

Jersey Electricity

Annual Report and Accounts 2025

Jersey Electricity

Financial statements

Governance

Strategy

People

Our people are integral to our success, helping us to deliver

on our strategic priorities. This year we created a Business

Leadership Team (BLT) to empower senior talent to step up

and take stronger ownership for eight key strategic

programmes of work.

Our People & Culture strategy aims to develop a culture of

engagement and empowerment, where employees are

encouraged to lead their workstream activities as if it were

their own business. The BLT structure has created a strategic

leadership space for eight employees exemplifying these

values to take responsibility and influence the delivery of

our key objectives.

Progress in our employee engagement is reflected in strong

return rates in our surveys and high-quality engagement

around the Company, putting JE in the top quartile on

engagement for another year.

Supply security and resilience

Jersey Electricity will formally adopt an enhanced Security of

Supply Standard by summer 2028. Work is underway to build

further security in the network, reflecting the Island’s increased

reliance on electricity as its primary energy source.

Jersey Electricity’s positive record of supply security continues

with an industry-leading customer minutes lost score,

although we narrowly missed our target due to planned

isolations required as part of major works. Maintaining

secure electricity supplies is paramount to supporting Jersey’s

economy and encouraging customers to switch to electric

heating and transport.

The £30m La Collette Resilience Programme has made

significant strides, safely demolishing the 50-year-old

steam turbines and associated infrastructure. The next

stage is to run a tender process for new generators which

would provide an additional 50 MW of on-Island fast start

backup generating capacity.

Setting the foundations for the electricity network of the

future is driving our largest ever investment into the network,

known as The Big Upgrade. This £120m investment over five

years will ensure we can meet the forecasted 25% increase in

peak demand to achieve the Island’s net zero target, while

providing customers with the flexibility to access the power

they need. Our innovative use of smart metering data has

enabled us to identify parts of our infrastructure that are

capacity constrained and ensure we deploy capital in the

most targeted and efficient way.

Working with Guernsey Electricity as part of our Channel

Islands Electricity Grid partnership, we’re advancing the

replacement of Jersey’s oldest subsea cable. This project

began at the end of 2024, and we have made good progress

defining our technical requirements and planning for consent

in both Jersey and France, and have moved well into the

tendering process.

Long‑term clean, green energy

Jersey currently imports around 94% of its electricity from

France through a supply contract with EDF. Our current

contract expires at the end of 2027 and we are pleased

to report good progress in negotiations. While there will

be some structural changes to the new contract, we are

confident it will provide the framework for us to continue

to deliver competitively priced power and good outcomes

for our customers. Meanwhile, we are well placed with our

current hedged position, which remains in place until our

incumbent contract expires.

Our strategy to import competitively priced low-carbon

power from nuclear and certified hydro-electric sources,

while diversifying our energy mix with locally sourced

renewable power, continues to serve the Island well. It has

resulted in a market-leading average carbon intensity of

distributed energy, and highlights a major advantage of

electricity as the Island’s predominant energy source.

Customers report that pricing is one of the most important

attributes of our service, and we are proud to have

successfully sheltered them from significant increases over

recent years, when European wholesale markets have spiked

upwards. While prices elsewhere have eased, electricity

is still substantially cheaper in Jersey than in many countries

in Europe.

Fuel switching momentum built towards the end of the

financial year, as we refocused our efforts to ensure we

meet customers’ needs and have the right low-carbon

technologies in place for the long term.

Our ‘heat pump first’ approach combined with government

incentives drove strong levels of domestic fuel switches

and we saw our strongest set of heat pump sales,

suggesting a shift in consumer sentiment. We continue to

partner with Government to support policy outcomes and

provide administration services for their Carbon Neutral

Roadmap initiatives.

The commercial sector has delivered particularly encouraging

results – well ahead of historic performance – concluding in

our most positive year in a decade for switches outside of

the post-covid high.

Further investment in our sustainable transport strategy has

supported the adoption of electric vehicles (EV) and ensures

we prepare the Evolve public charging network for future

flexibility and resilience. We invested in upgrades at several

strategic locations to provide more rapid charging options,

and installed new ultra-rapid chargers in Gorey and St Aubin.

We have also made progress with the next generation of

home-charging technology.

Chief Executive’s review

(continued)

With new projects delivering

locally-generated power to the

grid for the whole community, solar is

becoming increasingly affordable,

stable and complementary to our

imported power from France

Jersey Electricity

Annual Report and Accounts 2025

Jersey Electricity

Financial statements

Governance

Strategy

Through our Solar 5000 project, we’re working to power the

equivalent of 5000 homes with locally generated solar by

2030. We reached a key milestone this spring, cementing

our commitment to energy diversification, when Jersey’s

first solar farm was commissioned. Moulin à Vent is a 4 MW

project in St Clement – home to over 100 sheep who graze

beneath the solar array – and has materially outperformed

expectations this year (see page 44).

We have also seen positive progress on two significant

ground-mount solar farms which will be connected to the

local grid in early 2026, with consultations in progress on

two further sites. Rooftop solar projects remain a vital part

of our local energy generation strategy, with sites at the

airport and St Clement’s Parish Hall due to be commissioned

in FY26.

We remain supportive of Government as it considers offshore

wind, and we continue to explore the role JE can play in

its development.

Technology

Supporting our business portfolio as well as our customers

with innovative technology is a strategic priority. One core

outcome has been a major transformation programme

focused on simplifying processes, eliminating technical

debt and implementing best-in-class applications through

the strategic use of technology.

This includes a shift toward secure, scalable, cloud-delivered

systems that improve efficiency and resilience while

seamlessly connecting business areas. We are now finalising

plans and establishing key partnerships, ready to deploy the

new enterprise resource planning system next year. Good

progress has also been made to the rollout of advanced

metering infrastructure, marking a critical step toward a

smarter, more connected energy future.

We continue to invest in our current energy efficiency

platforms, and have developed a new commercial platform,

My JE for Business. This year, we held a successful pilot

scheme with the business community to help companies

manage their electricity usage across multiple sites.

Supplementing the app for residential users, this is an

important part of our strategy to encourage customers

to use resources more efficiently.

Customer

Customers remain the lifeblood of all we do. Acutely aware

of our monopoly heritage, we are working harder than ever

to better serve customers’ needs now and into the future.

Our Group-wide initiative Think Customer has further

improved our processes, skills and systems. As part of this, we

held workshops with every employee in the Company this

year to challenge them to consider how their role impacts

customer experience, even if they’re not in a traditionally

customer-facing role. We want to empower our colleagues

to ensure engaging with JE and its businesses is as

straightforward as possible.

Think Customer is helping build our customers’ trust in both

the Company, and the quality of our products and services.

Our Institute of Customer Service Survey Score maintains our

position in the upper quartile for utilities and our customer

satisfaction score also paints a positive result. This is a great

achievement, putting JE towards the top of the pack

alongside strong international performers.

Financial performance

FY25 was an ambitious year with the launch and

implementation of key infrastructure projects that will define

JE’s activities for the long term. Against this significant agenda,

we delivered a positive year of performance outcomes.

Group revenue for the year to 30 September 2025 rose 8%

to £146.2m (FY24: £135.7m), while profit before tax declined

6% to £14.2m (FY24: £15.1m).

The Energy business delivered a 6.4% return on assets,

sustaining strong performance on a five-year rolling basis.

Electricity unit sales reached 616 million kWh, a slight increase

on the prior year, driven by colder winter conditions and

continued electrification trends in heating and transport.

Following significant instability, the wholesale energy markets

have been broadly settled this year. This stability meant we

were able to announce a sub-RPI tariff increase of 2.5%,

implemented from 1 March 2026 – after the winter period to

protect customers. This is encouraging news, particularly

given the current cost-of-living pressures, the strategic

investments we’re making, and the work underway to

strengthen our foundations for future growth.

Outlook

With several strategic projects making great headway,

we end the year in a strong position. The critical groundwork

we delivered this year creates a resilient platform for

delivering long-term value to our customers, community

and stakeholders.

The coming 12 months will present challenges and

opportunities, as we strive to balance short-term projects

with longer-term investments.

Our agenda is broad and ambitious. From the springboard

we have invested in this year, JE is well-positioned to deliver

continued sustainable growth, support the Government

in its Carbon Neutral Roadmap ambitions and remain the

energy partner our Island deserves, while delivering fair

returns to shareholders.

After a difficult period of market volatility, during which our

focus has been to support and protect Islanders, we remain

in a good position with a new import contract with France

nearing completion.

We will continue to invest significantly in our core network,

strengthen our position in renewable energy across

Jersey and implement new approaches to accelerate the

decarbonisation of homes and businesses – most notably

in heating, cooling and transport.

Our significant investment programme calls for additional

financing. We are confident this can be secured in a manner

that creates value for consumers in a risk-managed way.

This will continue to be a focus into next year.

Our people, assets and processes, and the way they

come together, will be central to our promise to deliver

safe, reliable, affordable and sustainable services to our

community and shareholder value for the long term.

Chris Ambler

Chief Executive

JE stands at a pivotal moment. Building on this

year’s momentum, we are shaping a future of

energy innovation, climate leadership, and sustainable

growth. Our platform is set to deliver lasting value for

our Island, our customers and our community

Jersey Electricity

Annual Report and Accounts 2025

Jersey Electricity

Financial statements

Governance

Strategy

Jersey Electricity

(JE) powers the

lives of around 54,000 homes and

businesses across Jersey. We’re a

vertically integrated power company,

meaning we manage everything from

importing and generating electricity

to transmitting, distributing and

supplying it safely and reliably.

Our goal is simple, to provide safe, reliable,

affordable and sustainable energy for everyone

and every business in Jersey now and long into

the future. Listed on the London Stock Exchange,

we’re proud to play a central role in supporting

the Island’s community and economy.

Today, around 94% of the electricity we supply

comes from low-carbon sources in France, roughly

two-thirds nuclear and one-third hydroelectric,

delivered through three undersea supply cables.

This clean energy mix has allowed us to virtually

eliminate carbon emissions from Jersey’s

electricity supply. The remaining energy comes

from Jersey’s Energy from Waste plant, on-Island

solar generation and from test running our thermal

generation plant.

Beyond electricity, our businesses include retail

(

Powerhouse

), IT advisory (

Jendev

), building

services (

JEBS

), environmental engineering

and property, offering a range of services that

support customers and the wider community.

At Jersey Electricity, we’re committed to

enabling life’s essentials today and inspiring

a zero-carbon future.

Purpose, vision and values

Our purpose

To enable life’s essentials

by providing the

energy that powers homes, businesses

and communities across Jersey.

Our vision

To inspire a zero-carbon future

delivering safe, reliable, sustainable

and affordable energy.

Our values

Our six core values shape our culture and guide how

we work together to achieve our vision.

Safety

We do everything safely and responsibly – or not at all.

Nothing is more important than the safety of the public,

our customers and our people.

Customer focus

We listen to our customers and seek to understand and

respond to their needs, treating them the way we would

wish to be treated, with respect and honesty.

Teamwork

We value diversity and respect, and value our colleagues

as individuals. We believe we are stronger as a team,

leading to better solutions and a more enjoyable and

rewarding work life.

Reliability

We are trustworthy, dependable and reliable, delivering on

our commitments and always there when our customers

need us.

Excellence

We continually strive to work in a way that is both

innovative and simple to deliver cost-efficient solutions.

Responsibility

We accept responsibility for everything we do, safeguarding

the natural environment and the local community, as well

as the interests of our customers and people.

Our purpose, vision & values

Business enablement programmes

Infrastructure programmes

Think

Customer

The Smart

Upgrade

People

Power

The Big

Upgrade

Supply Security

and Resilience

Long-term Green,

Clean Energy

Jersey Electricity

Annual Report and Accounts 2025

Jersey Electricity

Financial statements

Governance

Strategy

Our business model

Jersey Electricity operates through three core business pillars, each playing

a vital role in delivering safe, reliable, affordable and sustainable energy

solutions for Jersey while supporting innovation and long-term growth.

We aim to achieve an attractive risk adjusted return to shareholders, at the

same time as delivering attractive products and services for customers now

and into the future.

Our strategy framework

About Jersey Electricity

(continued)

JE Energy

Our vertically integrated energy business is self-regulated and

responsible for generating, importing, transmitting, distributing

and supplying electricity to around 54,000 customers across

Jersey. This model ensures secure, affordable and low-carbon

energy for the Island.

JE Home & Business

JE Home & Business focuses on beyond-the-meter

solutions for homes and businesses, provides fuel switching

services, small-scale solar installations, building services,

property for rent and energy efficiency advice, and operates

The Powerhouse retail store. The Powerhouse retails home

appliances, health and wellbeing products, and smart

home technologies, supporting the Island’s transition to

sustainable living.

JE Technology

The technology business drives digital innovation and

transformation across the Group, JE Technology develops and

commercialises technology solutions that enhance operations

and customer experience. From app development and

data-driven insights to sustainable transport platforms,

this pillar enables efficiency, innovation and the potential to

leverage best-in-class technology platforms into new markets.

Our strategic objectives

Our strategic

priorities

Our strategy

Safe

Reliable

Affordable

Sustainable

Import low-carbon energy and

develop on-island renewables

as and when viable

Develop low-carbon

customer solutions to

drive growth

Leverage value chain and

technology to drive innovation

and efficiency

Jersey Electricity

Annual Report and Accounts 2025

Jersey Electricity

Financial statements

Governance

Strategy

About Jersey Electricity

(continued)

Our strategic objectives

We measure our success through four key objectives that reflect the value we

deliver to Jersey:

To deliver on these objectives, we have a strategy that defines the strategic choices we have made

and guides our allocation of resources:

Import low-carbon energy and

accelerate on-Island renewables

to ensure a reliable and sustainable

supply when economically viable.

Develop cost effective low-carbon

customer solutions for transport and heat

to support Jersey’s energy transition.

Leverage fully integrated business

model and technology to drive

innovation and efficiency.

Together, our objectives and strategic priorities ensure that Jersey Electricity continues to provide

essential energy today, while shaping a safe, sustainable and affordable energy future for the Island.

Our strategic priorities

Safe

Reliable

Affordable

Sustainable

Key work programmes

Business enablement programmes

Our work programmes are

central to delivering Jersey

Electricity’s purpose, powering

a zero carbon future for

Jersey through a safe, reliable,

affordable and sustainable

electricity supply. In FY25, we

advanced key infrastructure

programmes that underpin the

Island’s transition to net zero

and enhance the resilience

of our energy network for

generations to come.

Delivering Jersey’s energy

transition means we need

to invest not only in physical

infrastructure, but also in the

people, systems and culture

that will sustain it. Our business

enablement programmes

strengthen how we operate –

enhancing customer experience,

improving efficiency and

digital capability, and investing

in the people and skills that will

shape our future. By focusing

on our customers, leveraging

technology and empowering

our people, we are building

a resilient organisation ready

to lead Jersey’s transition to a

sustainable, all-electric future.

The Big Upgrade

Futureproofing Jersey’s network with a £120 million

investment in our electricity infrastructure.

Supply Security and Resilience

Strengthening supply resilience and enhancing

on-Island generation with the £30 million La Collette

Resilience Programme.

Long-term Green, Clean Energy

Accelerating Jersey’s renewable transition with a goal to

power 5,000 homes from solar energy by 2030 through

a £30 million commitment to Solar 5000, and enabling

access to cost effective, risk managed, imported energy.

Think Customer

Designed to deepen our understanding of customer

needs, improve every interaction and ensure our products

and services deliver real value and satisfaction.

The Smart Upgrade

Brings together three major programmes, advanced

metering infrastructure, enterprise resource planning

and retail transformation, to modernise how we work

and how customers experience our services.

People Power

Our long-term commitment to developing the capability,

culture and leadership needed to thrive in a rapidly

evolving energy sector.

Jersey Electricity

Annual Report and Accounts 2025

Jersey Electricity

Financial statements

Governance

Strategy

Our performance

Jersey Electricity sets clear key performance indicators (KPIs) to show how we

are meeting our commitments to customers, the community and Jersey’s energy

future. These measures help guide our decisions, inform our plans and keep us

focused on providing safe, reliable, affordable and sustainable energy.

Financial Performance FY25

Revenue (£m)

£146.2m

+8%

FY24

£135.7m

Growth driven by tariff increase, higher demand due to colder winter conditions

and fuel switching.

FY23

£125.1m

Unit Sales of Electricity (m)

616m

+1%

FY24

609m

Increase as a result of colder winter conditions and continued electrification

in heating and transport, offset by improvements in energy efficiency.

FY23

608m

Profit Before Tax (£m)

£14.2m

(6)%

FY24

15.1m

Decrease in profit due to revaluation of property portfolio and a one-off

pension cost.

FY23

14.9m

Ordinary Dividend Per Share (p)

20.8p

+5%

FY24

19.8p

Dividend growth reflects JE’s focus on sustainable, predictable returns while

supporting ongoing investment.

FY23

18.8p

Return on Energy Assets (5-year rolling avg%)

6.4%

+1pp

FY24

6.3%

Showing sound operational results while effectively managing the Company’s

investment programme.

FY23

6.2%

Non‑Financial Performance FY25

Customer Minutes Lost (CMLs)

7.7

(19)%

FY24

9.5

Planned network interruptions for the Big Upgrade impacted CMLs slightly.

FY23

4.0

Customer Service Score (average of 1 to 100)

75.4

(3)

FY24

77.5

A slight decrease linked to the timing of the tariff increase, has been offset

by improved complaint handling and overall customer experience.

FY23

80.3

Employee Net Promoter Score (-100 to +100)

(2)%

FY24

Employee engagement declined marginally amid major organisational

transformation driven by strategic and digital initiatives.

FY23

Environment and Safety Performance FY25

Level (gCO

e/kWh)

24.74

–

FY24

24.85

Carbon intensity remains low, supported by low-carbon imports

and on-Island renewable generation.

FY23

25.30

Safety – Lost time injuries (events)

–

FY24

Continued focus on safety has kept workplace incidents at a very low level,

the one lost time injury recorded was not serious.

FY23

Jersey Electricity

Annual Report and Accounts 2025

Jersey Electricity

Financial statements

Governance

Strategy

Chris Ambler

Chief Executive

Stakeholder engagement in FY25:

Unlocking innovation, long‑term investment and growth

Understanding

our stakeholders

Strong stakeholder relationships underpin our strategy for

innovation, long-term investment and sustainable growth in

the Island. As we progress our vision to inspire a zero-carbon

future, open and constructive engagement ensures our plans

are informed, inclusive and impactful.

Stakeholder objectives

1. Build trust

Provide reliable, affordable and low-carbon energy

with excellent service and clear communication.

2. Empower our people

Create a safe, inclusive and high-performance culture

where people feel confident to engage and thrive.

3. Lead Jersey’s energy transition

Work with partners to accelerate electrification and

achieve a sustainable, net zero future.

Informing investment through dialogue

Regular engagement between Board members, senior

leadership and Government supports our alignment

with national policy goals, including the Carbon Neutral

Roadmap and Jersey’s 2050 net zero target. This ongoing

collaboration reinforces confidence among investors,

suppliers and partners that Jersey Electricity is a stable,

forward-thinking business equipped to lead the transition.

Delivering our strategy relies on strong relationships with

all those whom we serve and work with:

Employees

Our success depends on the talent, diversity and

commitment of our people, who drive innovation

and bring our strategy to life. (See pages 22 to 24)

Customers

We’re committed to delivering a safe, reliable,

affordable and sustainable service that meets

customer needs today and into the future.

(See pages 26 to 27)

Communities and NGO’s

The support of our communities is essential to

achieving a fair and sustainable energy transition,

that is respectful of our Island. (See pages 28 to 29)

Government

As both policy maker and shareholder, a strong

partnership with Government is key to maintaining

strategic momentum. (See page 30)

Shareholders

Prudent financial and risk management enables

us to deliver stable, risk-adjusted returns and fund

future investment. (See page 31)

Partners, suppliers and contractors

We rely on healthy on and off-Island supply chains

that can support our strategy and that are committed

to our success.

Engaging meaningfully with our

stakeholders is central to building

relationships and strengthening trust. Their

feedback and insight help us anticipate

future needs, focus our resources and

deliver solutions that create lasting value

– for today, and for generations to come.

Jersey Electricity

Annual Report and Accounts 2025

Jersey Electricity

Financial statements

Governance

Strategy

People power

Understanding our stakeholders

(continued)

Andrew Welsby

People & Culture Director

Investing in people: Growth, innovation

and strategic commitment

In FY25, we continued to build momentum with our People &

Culture strategy, delivering a year of meaningful progress

across employee development, organisational innovation

and strategic investment. These efforts reflect our belief

that sustainable business growth is inseparable from the

wellbeing, capability and engagement of our workforce.

Growth through talent development

A cornerstone of our growth strategy this year was the

expansion of our early careers pipeline through targeted

outreach and community engagement. Our support for the

Primary Engineer programme enabled more than 1,000 Jersey

pupils to participate in a hands-on engineering competition,

sparking interest and gender diversity in STEM careers and

strengthening our presence in local schools. JE employees

volunteered as judges and mentors, and the judging and

grading was hosted on-site, reinforcing our role as a

community-minded employer.

In parallel, our bursary scheme continued to support aspiring

engineers and technicians through financial assistance

and mentoring. This initiative has helped build long-term

relationships with students and institutions, while also

ensuring a steady flow of talent into the business. The bursary

programme is a key part of our ‘grow our own’ philosophy, and

several recipients have gone on to join JE in permanent roles.

We also made strides in succession planning. The creation

of the Business Leadership Team, a group of high-potential

senior leaders, has accelerated development for future

executive roles. This initiative will increase leadership capability

and establish a robust succession pipeline, reinforcing our

commitment to internal growth.

Innovation in people strategy

Innovation was a defining theme in our people agenda this

year. We introduced several forward-looking initiatives that

reflect our commitment to continuous improvement and

creative thinking.

One such initiative was the launch of WeCare, a digital health

and wellbeing platform offering 24/7 access to virtual GP

consultations, mental health support and fitness programmes.

Over 30% employees engaged with the platform at launch,

and feedback has been overwhelmingly positive. This

investment in employee wellbeing complements our existing

healthcare benefits and demonstrates our duty of care in a

tangible, modern way.

Internally, we implemented the HiBob HR system to modernise

performance management. This digital tool has streamlined

appraisals and improved alignment between individual

objectives and Company goals. Managers were trained in

goal-setting and feedback, reinforcing a high-performance

culture. Alongside this, we completed work to allow for the

outsourcing of payroll commencing in October 2025 and

developed a business case for a new learning management

system – both steps in our ongoing HR digital transformation.

Building a culture of engagement and inclusion

Employee engagement remained strong throughout the year.

Our June 2025 survey saw 85% participation and an employee

Net Promoter Score (eNPS) of +31, placing us in the top

quartile for engagement of similar organisations surveyed.

These results reflect a culture of listening and continuous

improvement, supported by employee-led enhancements

across departments.

We also rolled out Recognize, a peer recognition platform

that logged more than 476 instances of kudos. This initiative,

coupled with the launch of semi-annual awards judged by

a leadership panel, has fostered a culture of appreciation

and boosted morale.

Inclusion was another priority. We refreshed our four-year

diversity, equity and inclusion (DEI) strategy, trained leaders

in inclusive hiring and established an inclusion forum. JE

sponsored Pride and other diversity events, contributing to

a more inclusive workplace and earning positive external

recognition. These efforts are helping to build momentum

around our inclusive culture and align with our values as a

responsible employer.

Community engagement and outreach

We launched a new employee value proposition, supported

by internal communications, an external careers site and

a multimedia apprentice campaign. These efforts have

unified our employer brand with strong engagement across

digital channels and local outreach.

The FY25 period has been marked by purposeful investment

in our people, underpinned by innovation and strategic

foresight. From expanding our early careers pipeline and

modernising HR systems, to launching wellbeing platforms

and exploring external partnerships, we have laid the

groundwork for a resilient, future-ready workforce.

These initiatives reflect our belief that growth is not merely

a function of financial performance but of organisational

enablement and vitality. By investing in our people, we are

investing in the long-term success of Jersey Electricity and

the community we serve.

NATIONALITIES

REPRESENTED

APPRENTICES

26/74%

FEMALE/MALE

GENDER DIVERSITY

YEARS

AVERAGE SERVICE

By investing in people, innovation and

future skills, we are building a resilient

workforce and strengthening our role as a

trusted employer in Jersey’s energy transition.

Jersey Electricity

Annual Report and Accounts 2025

Jersey Electricity

Financial statements

Governance

Strategy

Understanding our stakeholders

(continued)

IN FOCUS

Business Leadership Team

As part of delivering Jersey Electricity’s Company Business Plan (CBP),

we introduced a new governance and leadership structure in the

form of the Business Leadership Team (BLT). The initiative establishes

eight strategic workstreams: Tariffs, PPAs & Supply Contract,

Island Electrification, Strategic Planning & Performance, Business

Management Meeting, Culture, Business Transformation, Governance,

and Sustainability.

Each workstream is responsible for delivering

a key element of the CBP.

This approach was designed to create greater alignment,

accountability and empowerment by delegating ownership of

core strategic areas. The initiative encourages outcome-focused

delivery, deeper engagement into the organisation, cross-functional

collaboration and commercial thinking.

BLT members are stepping up to lead strategically significant work,

supported by the Executive Leadership Team (ELT), allowing the ELT

to focus more on strategy and longer-term planning. The workstreams

are also fostering a stronger culture of collaboration and leadership

development, helping SLT members become more promotable to

ELT roles in future.

Ultimately, this new structure is helping Jersey Electricity grow more

leaders, not just managers – tapping into the organisation’s latent

potential, strengthening collective purpose and ensuring that

every level of leadership contributes directly to delivering our

strategic outcomes.

Jersey Electricity

Annual Report and Accounts 2025

Jersey Electricity

Financial statements

Governance

Strategy

We launched Think Customer in

November 2024, following insight

from more than 1,096 customer survey

responses. This research identified 22

key expectations from customers across

various touchpoints – from choosing

a tariff and managing their account, to

resolving issues and accessing advice.

These expectations shaped a practical, people-led

framework built on three core customer promises:

We find brilliant solutions

We’re on it

We look out for you

Since launch, we’ve delivered 32 internal workshops to

embed these principles across the business. Teams are

empowered to listen actively, take ownership and respond

with empathy and action.

Understanding our stakeholders

(continued)

Our customers

Kate Gosson

Head of Customer Experience

Think Customer in action

We actively recognise exceptional customer experience

across our business and have many examples where our

customer-centric approach is reflected in how our people go

above and beyond every day. From making an unscheduled

in-person house visit to a vulnerable customer while their

supply was being restored, to going the extra mile with a

customer going through a heating upgrade, we are putting

Think Customer into action.

Looking ahead

As we grow and innovate, Think Customer is central to how

we invest in our people and improve our services. We’ve built

new processes to keep our promises front of mind and will

continue refining the framework through ongoing feedback,

coaching and insight.

Our priorities for the year ahead include:

Embedding Think Customer principles into major business

projects and digital initiatives.

Expanding tailored advice and support for our most

vulnerable customers.

Continuing to empower our people to own and improve

the customer experience – every day, for every customer.

By investing in our people, listening to our customers and

embracing innovation, we’re building the foundations for

long-term, sustainable growth – delivering a customer

experience that’s as reliable and forward-thinking as the

energy we provide.

75.4

CUSTOMER

SATISFACTION SCORE

OUT OF 35 UTILITIES

Institute of Customer Service (ICS)

A great customer experience is delivered

by great people, because at Jersey Electricity,

customer experience isn’t just a department,

it’s part of who we are.

Jersey Electricity

Annual Report and Accounts 2025

Jersey Electricity

Financial statements

Governance

Strategy

100 Projects That Matter

In November 2024, we officially launched

100 Projects That

Matter

, a community impact programme inspired by our

centenary year and dedicated to creating meaningful and

lasting change across Jersey. Built on four pillars supporting

education, health, the environment and diversity, equity and

inclusion, the initiative aligns with our values and reinforces

our long-term commitment to supporting the community

we serve.

In its first year, the programme supported 31 projects,

investing £83,469 to create meaningful impact in the areas

that matter most to Islanders. Each project represents a

story of collaboration, innovation and investment in our

community’s future.

By focusing on these four pillars and supporting

diverse initiatives,

100 Projects That Matter

helping Jersey grow stronger, healthier and more

inclusive. As the programme develops, we will

continue to invest in local causes, ensuring our growth

as a business translates into shared benefits for the

wider community.

Community and NGOs

Understanding our stakeholders

(continued)

Adam Caerlewy-Smith

Head of Marketing & Communications

IN FOCUS

Dementia Jersey

empowering carers

through accessible

support

Dementia Jersey provides vital support to

Islanders living with dementia and their families.

Through

100 Projects That Matter

, we supported

the charity’s initiative to produce a series of

12 educational videos designed to help carers

navigate the challenges of supporting loved

ones with dementia.

The videos answer frequently asked questions

and provide practical advice to build carers’

understanding and confidence. Hosted on

Dementia Jersey’s YouTube channel, the videos

offer easily accessible, trusted information at

any time.

This project strongly aligns with our health

and education pillars, promoting wellbeing

through accessible learning and community

empowerment. Our panel was inspired by

the initiative’s potential to make a meaningful

difference to carers across the Island, and we

are proud to support it.

100 Projects That Matter is about supporting

the people and organisations making a real

difference in our community, turning local ideas

into lasting impact.

Jersey Electricity

Annual Report and Accounts 2025

Jersey Electricity

Financial statements

Governance

Strategy

Government

Shareholders

Throughout FY25, we have continued to

work closely with the Government of

Jersey across a wide range of initiatives.

Together, we play an instrumental role

in helping Jersey address the challenges

of achieving net zero and delivering on

the commitments set out in the Carbon

Neutral Roadmap.

Meeting the needs of our shareholders

is central to our ability to attract finance

to invest, innovate and grow sustainably.

By maintaining financial resilience and a

disciplined approach to investment, we

can balance shareholder returns with

long-term value for all stakeholders.

We administer and support the Government of Jersey’s Low

Carbon Heating Incentive and Electric Vehicle Charging

Infrastructure schemes as part of our broader decarbonisation

and electrification strategy. These programmes are essential

to enabling Islanders to make the transition to low-carbon

technologies with confidence.

This collaboration has been central to helping Islanders take

practical steps towards reducing their carbon footprint.

By combining investment, innovation and strong partnership,

we are helping to ensure that Jersey moves closer to its net

zero ambitions, while creating long-term value for our

customers and the wider community.

Understanding our stakeholders

(continued)

Our governance framework and approach to risk

management are set out on pages 70 to 80. Our vertically

integrated business model, from generation and importation

through to supply and customer services, enables efficiency

and stability throughout the value chain. This integrated

structure, underpinned by prudent financial management

and continuous innovation, provides a strong foundation

for future growth and ensures that our investment decisions

are aligned with Jersey’s long-term energy needs.

During the year, we continued to invest strategically in major

infrastructure and renewable projects, including The Big

Upgrade and the commissioning of the St Clement solar farm,

while maintaining a stable financial position and delivering on

performance targets. These investments are strengthening the

Island’s electricity network, expanding renewable generation

and supporting the transition to net zero, creating sustainable

growth for shareholders and the wider community.

Delivering a stable and reliable risk-adjusted return for

shareholders is an integral part of our long-term investment

strategy. Our Return on Assets for our Energy business for the

year was 7.4%, and 6.4% on a five-year rolling basis, in line

with target. The Board has recommended a final dividend

of 20.82p per share, representing a 5% increase on the

previous year.

Jersey Electricity

Annual Report and Accounts 2025

Jersey Electricity

Financial statements

Governance

Strategy

Investing in a sustainable future

through growth and innovation

In 1987, the United Nations Brundtland Commission defined

sustainability as “meeting the needs of the present without

compromising the ability of future generations to meet

their own needs.” This principle continues to guide Jersey

Electricity’s long-term strategy as we invest in a cleaner,

smarter, fairer and more resilient energy system for Jersey,

now and into the future.

For us, sustainability is about more than achieving net zero.

It’s about creating lasting value now and into the future,

for our customers, employees, shareholders and the wider

community, while ensuring that the way we grow today

strengthens the Island’s environmental, social and

economic future.

Our Sustainability Framework

The UN Sustainable Development Goals (SDGs) remain the

global blueprint for a sustainable world. At Jersey Electricity,

the most material goals to our business are embedded

within our own Sustainability Framework, which aligns

directly with our core purpose: to provide energy that is

safe, reliable, affordable and sustainable.

This framework extends beyond environmental stewardship.

It shapes how we innovate, invest and collaborate – ensuring

that every decision contributes to a cleaner, smarter, fairer

energy future. From decarbonising our operations and

enabling the transition to electric heating and transport,

to supporting our people and customers through change,

sustainability is woven into the fabric of how we do business.

Driving measurable progress

Over the past year, we have continued to enhance our

data-driven approach to sustainability, expanding the

range of indicators we track and integrating this insight into

operational and investment decisions. This approach allows

us to identify efficiencies, manage our environmental impact

and measure progress transparently.

Looking ahead

As we move forward, sustainability will remain central to

our growth strategy, driving innovation, guiding responsible

investment and ensuring Jersey Electricity continues to play

a leading role in building a sustainable, prosperous future

for the Island.

Sustainability:

More than achieving net zero

Our footprint

We will achieve net zero

emissions by 2040 and

inspire excellence in

environmental stewardship.

We will seek to deliver

an affordable, secure and

sustainable energy supply

for all Islanders.

We will provide solutions

and services to enable

customer and community

transitions to net zero.

We will contribute to

the regeneration of the

Island's ecosystem.

Our Island

We will be leaders,

working collaboratively

with others in the drive to

Jersey’s net zero future.

We will reduce emissions

from our operations.

We will reduce waste

and drive sustainability

across our business

wherever we can.

We will build a more

sustainable supply chain.

We will create champions

of sustainability through

our culture and values.

We will celebrate diversity,

equity and inclusion in

our organisation.

We will embed health,

safety and wellbeing in

all we do and develop

our people to be the

best they can be.

Our people

We will build a sustainable,

diverse and inclusive culture,

equipping our people to

thrive into the future.

Jersey Electricity

Annual Report and Accounts 2025

Jersey Electricity

Financial statements

Governance

Strategy

Reducing the environmental impact of

our operations remains a central focus.

We made progress in decarbonising

our own activities, particularly through

the electrification of our vehicle fleet.

By the end of the financial year, we had completed our fleet

transition from fossil-fuelled vehicles to electric, a year ahead

of schedule and c. £1m under budget due to favourable

market conditions. Due to specific operational needs,

some vehicles used by our field-based teams don’t currently

have an EV alternative, so the remaining vehicles run on

hydrotreated vegetable oil (HVO) biofuel and will be replaced

when a viable electric equivalent is available.

Efforts to transition on-Island generation away from marine

gas oil (MGO) to alternative fuels such as HVO and hydrogen

have advanced, with feasibility studies completed. However,

the formal transition plan is still in development and is

expected to be finalised in the coming year. We also made

progress in phasing out sulphur hexafluoride (SF

) from our

switchgear, completing the research phase and taking

initial steps to explore procurement of SF

-free equipment

for future use.

A comprehensive baseline for internal energy consumption

has been established, which will enable us to target energy

reduction strategies. Waste audits were conducted across

the business, identifying opportunities for increased recycling

and the possibility of packaging return schemes. Circularity

principles are being embedded in procurement and asset

management, with frameworks under development for

end-of-life product management.

On the reporting and standards front, Jersey Electricity has

fully implemented the Workiva ESG platform for sustainability

data capture and TCFD reporting. We have also undertaken

work to align our Environmental Management System with

ISO 14001 – reinforcing our commitment to environmental

stewardship – with further work planned for the coming year.

Our climate related disclosures (TCFD) can be found on

pages 81 to 90.

As a company, we continue to

demonstrate leadership in Jersey’s

transition to a net zero future. Our

commitment to achieving net zero

across scopes 1, 2 & 3 by 2040 is closely

aligned with the Island’s 2050 target.

This ambition is reflected in both our

strategic planning and practical action.

A major milestone this year was the completion of the first

utility-scale ground-mounted solar array at St Clement.

Moulin à Vent is Jersey’s first operational ground solar farm.

Planning and construction for additional solar farms is

progressing well. (See pages 43 to 44)

We are also exploring innovative approaches to land use

and biodiversity, incorporating agrivoltaics, which combine

solar generation with agricultural activity to enhance both

energy production and biodiversity. In addition, Geographic

Information Systems (GIS) mapping of Company assets

against sensitive ecological areas has begun, laying the

groundwork for a biodiversity framework aligned with the

Taskforce on Nature-related Financial Disclosures (TNFD).

Community engagement remains a core value. We have

launched 100 Projects That Matter, a community impact

programme designed to make a tangible and lasting

difference across Jersey. (See pages 28 to 29)

We have played an active role in government schemes to

promote low-carbon heating and electric vehicle adoption,

further embedding sustainability in the Island’s daily life.

During the year we continued to sponsor the National Trust

for Jersey’s Education Officer to support the delivery of

educational workshops to help children and young people

across the island understand climate change and how they

can be a positive force.

Our footprint

Our Island

Sustainability

(continued)

Jersey Electricity

Annual Report and Accounts 2025

Jersey Electricity

Financial statements

Governance

Strategy

Our people remain central to our

sustainability strategy. Nearly all

employees, including senior leaders,

have completed Carbon Literacy

Training, with sustainability modules

now integrated into onboarding

and ongoing internal engagement.

A network of sustainability champions is being formalised to

promote green initiatives across the business. We continue to

advance diversity, equity and inclusion, with 27 nationalities

represented across our workforce, and maintain a strong

focus on health, safety and wellbeing.

Investment in people development remains high, with

expanded apprenticeship and bursary programmes,

a focus on digital skills and structured succession planning

to build future leadership.

In FY25, Jersey Electricity made significant progress in

delivering on its sustainability strategy. We continue to build

strong foundations for biodiversity, circularity, and global

standards alignment, ensuring sustainability remains

embedded across our operations, our culture and our

contribution to Jersey’s sustainable future.

Our people

Sustainability

(continued)

Jersey Electricity

Annual Report and Accounts 2025

Jersey Electricity

Financial statements

Governance

Strategy

JE Energy’s

performance has continued

to be strong and thankfully we have

not experienced any major incidents

this year, such as Storm Ciaran in

November 2023.

Performance

Unit sales were 616 million units, almost 5.5 million units ahead

of last year driven by slightly cooler conditions in the autumn

and winter. Peak demand was 155 MW, which was below

last year’s 163 MW.

Importation from France continued to be the main source

of energy, with this being 94% of the Island’s requirements.

Local generation accounted for 1%, from the Moulin à Vent

solar farm, which was commissioned in February, accounting

for the majority of this. The Energy from Waste plant, provided

the balance of 5%.

Mark Preece

Chief Operating Officer

JE Energy

FY25

FY24

No. customers

54,302

53,726

Customer Minutes Lost (CMLs)

7.7

9.5

(excl Storm Ciarán)

Customer Interruptions (CIs)

13.7

19.3

(excl Storm Ciarán)

% Energy imported

93.7

94.5

Energy generated from on-Island Solar

5.8m units

1.1m units

Network investment programme (£m)

22.6

Blended gCO

e/kWh

24.74

24.85

JE Energy delivered another strong year

of performance, with stable operations and

no major incidents, reflecting the strength and

resilience of our infrastructure and our people.

Security of supply

There has been an improvement in supply security during

FY25, with customer minutes lost reduced to 7.7 (FY24: 9.5).

This is also reflected in customer interruptions of 13.7 (FY24: 19.3).

Underline fault performance has been extremely good, even

with the additional planned customer interruptions as part

of The Big Upgrade to enable higher capacity connections.

These key measures remain significantly lower than other

jurisdictions and are reflective of investment over many years.

As advised last year, we completed a review of the Security

of Supply Standard. Enabling works for the La Collette

Resilience Programme have progressed significantly with the

demolition of the redundant steam generators, with work

due to be completed in spring 2026. We have embarked on

provisioning 50 MW of new generators at the site, with a

further 25 MW capacity being considered to replace an

ageing gas turbine at our Queen’s Road site. It is possible that

the selected units could run on multiple fuels such as HVO and

hydrogen, thus improving the sustainability of this contingency.

Jersey Electricity

Annual Report and Accounts 2025

Jersey Electricity

Financial statements

Governance

Strategy

IN FOCUS

The Big Upgrade

Investing in a cleaner, smarter, fairer energy future

Over the past year, we have strengthened our commitment to innovation

and sustainable growth through

The Big Upgrade

– a transformative £120m,

five-year investment programme designed to futureproof the Island’s

electricity network for a low-carbon future.

Harnessing 100% smart meter coverage, advanced data analytics and

a digital twin of the electricity network,

The Big Upgrade

enables highly

targeted, efficient investment, ensuring the network evolves in step with

customers’ needs and Jersey’s transition to clean energy.

Building the foundations for growth

The programme includes the upgrade of 100 km of new low-voltage

cabling, 20 new substations, a major subsea cable upgrade and 50 MW

of additional backup generation capacity. These investments are

strengthening network resilience and preparing for increased demand

from electric heating, transport and emerging technologies.

Driving innovation and efficiency

The integration of a geographic information system (GIS) with our asset

management system has transformed network planning, providing near

real-time visibility of infrastructure capacity and customer connections.

By combining GIS insights with smart meter data, we are creating dynamic

demand models that inform strategic reinforcement planning aligned with

Jersey’s Carbon Neutral Roadmap.

This data-driven approach has delivered tangible efficiencies:

A 50% increase in planning output without additional headcount.

Reduced capital investment requirements through precision targeting.

Improved service delivery and network reliability for customers.

Collaboration and delivery

Collaboration across internal teams and with external partners has

been central to the success of

The Big Upgrade

. To date, we have initiated

40 individual projects, representing £5.2m of investment and 11 km of

new cabling:

Twenty two completed

Six in progress

Seven programmed (subject to permissions)

Five in active planning

The Big Upgrade exemplifies how strategic investment, digital innovation

and collaboration can deliver operational excellence, customer value

and environmental progress, laying the foundation for a smarter, more

resilient and sustainable energy future for Jersey.

Jersey Electricity

Annual Report and Accounts 2025

Jersey Electricity

Financial statements

Governance

Strategy

JE Energy review

(continued)

Accelerating solar deployment

Harnessing the sun for everyone

As part of our Solar 5000 strategy, which aims to deploy

25 MWp of solar capacity and power the equivalent of

5,000 homes by 2030, we have made significant strides

in expanding both rooftop and ground-mounted solar

generation across Jersey.

Rooftop solar

We commenced installation of a 350 kWp array on the

roof of the Jersey Airport Cargo Centre, which is nearing

completion, and successfully installed a smaller rooftop

system at St Clement Parish Hall, integrated with a fuel switch

to support low-carbon heating and EV charging.

A landmark agreement with Albert Bartlett is now in place,

enabling what will be the Channel Islands’ largest rooftop

solar array at their Peacock Farm facility. In parallel, we are

progressing detailed discussions with the Government of

Jersey to deliver a series of large-scale rooftop projects,

starting with Le Rocquier School and the La Collette bus

depot. These installations form part of the Jersey Property

Holdings framework agreement, which supports the rollout

of solar across publicly owned buildings, including schools

and commercial sites.

Work also continues on the replacement of Normandie 2,

our oldest submarine cable to France, currently forecasted

for installation in 2028.

To date we have commenced the

required Environmental Impact Assessment surveys as well

as the procurement process for the new cable contract,

which we anticipate awarding in FY26, allowing time for

detailed design and installation planning.

Over the year, we have been engaged in ongoing discussions

with our current energy supplier, EDF, regarding our new

supply contract. We expect to finalise and sign this agreement

in early 2026. The new contract will commence in 2028 and

ensure Islanders continue to benefit from stable, competitive

pricing and a secure supply of low-carbon, reliable electricity.

Enhanced Security of Supply Standard

Our enhanced Security of Supply Standard, effective from

Summer 2028, sets a new benchmark for resilience in the

Island’s electricity system. The standard ensures that

Jersey’s network is capable of meeting demand reliably,

even under extreme and unlikely circumstances.

It is designed to deliver sufficient capacity to meet a 1-in-20-

year winter peak demand, providing confidence that supply

can withstand exceptional conditions. In a 1-in-3-year winter

scenario, the system could meet 99% of all demand, even if

we simultaneously lost all imported supplies from France and

the Island’s largest generator.

7.7

CUSTOMER MINUTES LOST

vs 9.5 in FY24

13.7

CUSTOMER INTERRUPTIONS

vs 19.3 in FY24

5.8m

units

GENERATED

vs. 1.1m units in FY24

Ground-mounted solar

We have also made strong progress in delivering ground-

mounted solar. Our Moulin à Vent solar farm (4.3 MWp) is now

operational and has exceeded initial energy production

forecasts by 25–30% to date, primarily due to optimised

layout of the site, improved solar panel efficiencies and

favourable weather conditions. Construction is approximately

60% complete on two additional ground-mounted sites in

St John and St Mary, which will add a further 6.6 MWp of

installed capacity.

Our long-term plan includes up to six ground-mounted

installations. This year, we announced a major new site at

Belle Fontaine, and expect two further sites to progress to

the planning application in FY26.

Jersey Electricity

Annual Report and Accounts 2025

Jersey Electricity

Financial statements

Governance

Strategy

IN FOCUS

Moulin à Vent solar array

A renewable energy milestone

On 30 April 2025, Jersey marked a major milestone with the official

switch on of Moulin à Vent, the Island’s first operational ground-

mounted solar array. Located in St Clement, this pioneering site is

a cornerstone of Solar 5000 and a significant step towards Jersey’s

net zero ambitions.

The installation comprises 7,436 panels across two solar fields,

generating around 5 GWh of electricity annually – enough to power

1,200 homes. Early results show the site performing 25-30% above

generation forecasts, demonstrating the potential of local renewable

energy to deliver strong, reliable returns.

Designed for sustainability

Delivered on time and within budget, Moulin à Vent reflects effective

collaboration between Jersey Electricity, local contractors and

landowners. A key partnership was formed with local farmer

Jeremy Hughes, whose flock now grazes the land beneath the

panels year-round. This agrivoltaics model supports biodiversity,

soil regeneration and the continued agricultural use of the site,

proving that clean energy and farming can thrive together.

To further enhance ecological value, we planted 900 metres of

hedgerow and 40 new trees, strengthening habitats and improving

local biodiversity.

Impact and legacy

With a lifespan of up to 40 years, Moulin à Vent provides predictable

energy costs, strengthens energy security and reduces carbon

emissions. The project has also created skilled local jobs in engineering,

installation and maintenance, with training programmes underway

to expand renewable energy expertise across the Island.

Looking ahead

Moulin à Vent is more than Jersey’s first solar farm, it’s a symbol

of progress – demonstrating how innovation, investment and

collaboration can accelerate the transition to a cleaner, more

resilient energy future. As the first in a series of ground-mounted

solar arrays under Solar 5000, it sets a benchmark for what’s

to come.

Jersey Electricity

Annual Report and Accounts 2025

Jersey Electricity

Financial statements

Governance

Strategy

Embedding a culture of care, responsibility, and continuous improvement

Continuous improvement

In FY25, we continued to strengthen our approach to health

and safety by focusing on continuous improvement and

external validation. We appointed an independent health

and safety consultancy to conduct a comprehensive audit

of our management system, including site visits, Safe System

of Work reviews, policy assessments and team interviews.

The audit outcome was highly positive, noting: “a robust and

conscientious approach to risk identification and control,

strong management practices across the organisation, and

clear senior leadership commitment to health and safety”.

The findings are informing our roadmap to align with

ISO 45001 in the year ahead, an important milestone in

our ongoing commitment to excellence in health and

safety management.

Recognising that effective safety extends beyond compliance,

we have launched a safety culture assessment to underpin

a new behavioural safety transformation programme. This

initiative focuses on proactive risk awareness, leadership

engagement and embedding positive safety behaviours

across all levels of the business.

Mental health and employee wellbeing

In FY25, responsibility for our mental health strategy moved

to the Health, Safety & Sustainability team, reflecting the

importance of integrating wellbeing into our wider safety

culture. Working with a specialist provider in Jersey, we

expanded our employee wellbeing support and developed

new initiatives planned for launch in FY26, including events

marking World Mental Health Day.

We now have 11 trained mental health first aiders (MHFAs)

across the business, supported through quarterly forums

and dedicated resources.

These programmes help ensure our people receive the

support they need, especially during periods of change.

Looking ahead, we will continue to expand wellbeing

initiatives through targeted workshops, learning sessions

and enhanced MHFA support.

Safety performance

During the year, we recorded one lost time injury, which was

not serious, but resulted in 24 lost working days. Our overall

incident rate remains low and reflects our ongoing investment

in risk management, training and safety systems within a

complex operational environment.

Looking ahead

Our priorities for FY26 include the full rollout of the

behavioural safety training programme from December

2025, continued alignment with ISO 45001 and ISO 14001,

and further updates to our health and wellbeing strategy.

By embedding health, safety and wellbeing into every part

of our business, we continue to invest in our people, enhance

operational excellence, and ensure we deliver energy

safely, reliably and sustainably to the Island community.

Health, safety and wellbeing

Ross Muir

Head of Health, Safety & Sustainability

JE Energy review

(continued)

A strong safety culture underpins everything

we do, ensuring our people can perform their roles

confidently, safely and effectively while supporting

the reliable delivery of energy to the Island

Jersey Electricity

Annual Report and Accounts 2025

Jersey Electricity

Financial statements

Governance

Strategy

Peter Cadiou

Business Development Director

Fuel switching performance

Fuel switching gained strong momentum in FY25, delivering

more than 246 fuel switch acceptances, including a fivefold

increase in heat pump adoption. Leveraging the Government

of Jersey’s Low Carbon Heating Incentive, heat pumps are

one of our core growth priorities, highlighting their efficiency

and potential to reduce household energy costs and

emissions. Enhanced marketing, strong follow-up processes

and customer support have boosted conversion rates and

raised awareness of the benefits.

Looking ahead, fuel switching will remain central to our

business development strategy, supported by innovative

financing, bundled services and continued government

collaboration. We will deliver the Fuel Switching Acceleration

Programme, streamlining the customer journey and scaling

adoption to drive Jersey’s transition to a zero-carbon future.

FY25

FY24

No. customers

54,302

53,726

Number of

fuel switches

acceptances (JE)

246

239

No. customers on

discounted heating tariffs

24,256

23,657

Product development and innovation

Beyond fuel switching, we have strengthened our product

portfolio and service model. Hybrid heat pumps, the online

fuel switching tool and heating as a service exemplify

customer-focused innovation, while industry partnerships

ensure supply chain resilience and installation excellence.

Investing in training, digital tools and service innovation

positions us as a trusted advisor in the clean energy market.

By anticipating evolving customer needs and leveraging new

technologies, we are creating scalable pathways for growth

and reinforcing our leadership in the energy transition.

Supporting customers through growth,

innovation and investment

Our commitment to growth, innovation and investment is

giving Islanders greater choice, improved efficiency and

the tools to cut their carbon footprint.

The Smarter Living initiative at the Powerhouse is a

dedicated hub where customers can explore sustainable

technologies, access advice and connect with incentive

programmes. This service is complemented by home

energy advisors, who provide personalised home visits with

practical recommendations to reduce bills and emissions.

Innovation is also evident in new products and digital

tools, including domestic solar, advanced heating solutions

and the online fuel switching tool, which links directly

to schemes such as the Low Carbon Heating Incentive,

Electric Vehicle Purchase Incentive and the Electric Vehicle

Charging Incentive.

Initiatives such as the thermal camera programme, alongside

investment in training, digital infrastructure and streamlined

processes, are making low-carbon adoption easier and

more accessible.

Through continuous improvement and proactive

engagement, JE is reinforcing its role as a trusted energy

partner, supporting customers today while preparing for

Jersey’s sustainable energy future.

JE Home & Business

Fuel switching gained strong momentum

in FY25, with a fivefold increase in heat pump

sales, clear evidence that Jersey’s transition to

low-carbon heating is accelerating.

Jersey Electricity

Annual Report and Accounts 2025

Jersey Electricity

Financial statements

Governance

Strategy

IN FOCUS

Heat pumps

powering low‑

carbon growth

Fuel switching gained strong traction in FY25,

with more than 246 customers making the shift to

electric heating and a fivefold increase in heat

pump adoption year-on-year. This rapid growth

reflects rising customer demand, effective use

of targeted incentives and our commitment to

investing in clean, smart technologies.

Heat pumps are a central pillar of our low-carbon

growth strategy. By delivering up to four times

more energy than they consume, they offer

a highly efficient, cost-effective, and network-

friendly alternative to fossil fuel heating. Customers

benefit from reduced energy bills, improved

comfort and significantly lower emissions.

This growth has been enabled by strong

collaboration with the Government of Jersey,

leveraging the Low Carbon Heating Incentive

and sustained investment in marketing, customer

support and installer partnerships. These efforts

have boosted awareness, improved conversion

rates and built trust in heat pump technology as

a scalable, future-ready solution.

Looking ahead, heat pumps will remain a key

innovation focus as we expand Jersey’s all-electric

future, delivering on our vision for decarbonisation,

resilience and sustainable growth.

Jersey Electricity

Annual Report and Accounts 2025

Jersey Electricity

Financial statements

Governance

Strategy

Electric mobility

Public charging

In FY25, we continued to expand and enhance Jersey’s

public EV charging network, reinforcing our role as a reliable

enabler of the Island’s electrification journey. We now

operate 116 charging ports across Jersey, providing wide

access to dependable charging infrastructure for residents,

businesses and visitors.

Our partnership with Virta continues to extend the reach of

our network. Through roaming agreements, customers can

access tens of thousands of charging points across the UK

and Europe using the same app or charging tag.

Two dual 150 kW ultra-rapid chargers were commissioned

during the year, in the east and west of the Island,

complementing our existing unit at the Powerhouse. These

installations provide faster charging for newer vehicles with

larger batteries and form part of our ongoing investment in

ultra-rapid and rapid charging capacity.

Improving reliability and availability remained a key focus,

and we have made targeted investments in charger

connectivity and uptime to enhance customer experience

and network performance.

We also achieved accreditation for hardware support and

installation, strengthening our technical capabilities and

service standards.

A major milestone was the commissioning of the largest

fleet charging installation at La Collette Power Station,

supporting our growing electric vehicle fleet. This investment

improves operational resilience and supports our wider

decarbonisation strategy.

JE Home & Business review

(continued)

Evolve

In FY25, we completed the administration of the Electric

Vehicle Grant Scheme ahead of schedule, marking a key

milestone in our partnership with the Government of Jersey

to deliver low-carbon transport initiatives.

Our EasyCharge home EV charging subscription service

continues to perform strongly, offering customers a simple,

all-inclusive home charging solution. EasyCharge also

supports network efficiency by enabling smart load shifting

from peak to off-peak periods, optimising energy use and

reducing costs. Since its launch in May 2022, installations

have grown to 436, up from 308 in FY24, demonstrating

sustained customer confidence and demand.

We also strengthened engagement with key stakeholders

through events for vehicle dealers and commercial fleet

operators. These sessions enhanced collaboration across

the sector and reinforced our leadership in supporting

Jersey’s transition to electric transport.

Looking ahead, development is underway on the next

generation of home charging technology, with launch

planned for FY26. The new system will build on the success

of EasyCharge, incorporating advanced features to meet

evolving customer needs and support Jersey’s carbon

neutrality ambitions.

116

CHARGING POINTS

vs 110 in 2024

Jersey Electricity

Annual Report and Accounts 2025

Jersey Electricity

Financial statements

Governance

Strategy

Other businesses

Powerhouse

Digital transformation and systems integration

We have made significant progress this year on two major

technology initiatives designed to strengthen Powerhouse’s

digital and operational performance. The migration to Adobe

Commerce will enhance online sales capabilities and improve

the customer shopping experience, while the implementation

of LS Central is set to deliver greater operational efficiency,

improved stock accuracy and a more seamless end-to-

end service.

Service expansion and capability building

Powerhouse’s servicing capability has grown meaningfully,

laying the foundation for a comprehensive in-house

appliance servicing offer. This development included

recruitment planning, vehicle investment and process

improvements to support the delivery, installation and

repair of appliances – strengthening the Powerhouse’s

ability to provide full lifecycle customer support.

Electric bike market growth

The first full year of trading within the expanded electric bike

sales area delivered Powerhouse’s best-ever performance in

e-bike sales, despite broader market pressures. The improved

showroom layout and dedicated space significantly

enhanced customer engagement and conversion,

cementing the Powerhouse’s position as the Island’s leading

e-bike retailer.

Showroom enhancements and

customer experience

The refreshed showroom has allowed us to introduce new

brands and a wider product range, alongside dedicated

demonstration set-ups that help customers experience the

latest technology first-hand. These enhancements have

elevated both the educational and experiential aspects of

the customer journey.

Financial performance

Powerhouse reported an operating profit of £0.3m, compared

to £0.6m in the previous year. The reduction reflects

exceptional costs linked to ongoing transformation projects,

which are expected to deliver long-term commercial and

operational benefits.

Jendev

Jendev delivers digital enterprise resource planning

solutions across our business domains, serving both internal

and external clients. Building on its expertise in Microsoft

NAV, Jendev is now focused on a strategic transition to the

Microsoft Business Central stack. This evolution supports

billing platform customers in moving to modern cloud-

based environments, aligning with industry trends and

customer expectations.

Jersey Energy

Consultancy growth and

financial performance

Jersey Energy successfully completed the first year of its

new five-year business growth plan. The business reported

an increase in income, exceeding budgeted profit margins

on the prior year. This growth was driven by new client

relationships across Jersey and Guernsey, improved team

productivity and more efficient project delivery.

Service diversification and market expansion

We launched two new services this year: a drone surveying

service and a Mechanical, Electrical, and Plumbing (MEP)

Computer Aided Design (CAD) service for contractors, which

have strengthened our market position and broadened our

service offering. Marketing activities included a refreshed

company brochure and enhanced social media presence,

with a new website planned for next financial year.

Organisational development

and skills investment

We introduced a comprehensive skills programme to

support professional growth, with high participation

across the team. Training covered areas such as power

generation, electrotechnical engineering and leadership.

Our recruitment efforts successfully added a trainee and a

qualified electrical design engineer, enhancing our capacity

to deliver complex projects.

Project delivery and technical excellence

Jersey Energy maintained its leadership in MEP consultancy

across the Channel Islands, delivering major projects including:

The Limes – 127 new apartments and refurbishment of

15 units for Andium Homes.

Telecoms Data Centre – major refurbishment supported

by advanced 3D modelling.

Jersey Water HQ – ongoing design and site work.

Ports of Jersey – plant upgrades and electrical

infrastructure improvements.

Innovation in tools and technology

Investments in advanced surveying equipment, including

energy logging tools and a thermal imaging drone, have

further enhanced our technical capability and service quality.

These developments reflect our commitment to innovation

and sustainable engineering solutions.

Property

The Group’s property interests include the B&Q store and

medical centre located at the Powerhouse retail and

administration site on Queen’s Road, along with 29 privately

rented houses and flats. We also have Majestic, Orchid

Care, Café Zone and Sure as commercial tenants. In FY25,

the Property division delivered a profit of £1.3m, excluding

revaluation movements, up from £0.9m in the previous year.

The overall value of the portfolio fell by £0.9m to £25.8m,

reflecting broader trends in the local property market.

JE Home & Business review

(continued)

A key priority is the ongoing development of the Jenworks

billing platform, ensuring it remains robust, scalable and

adaptable to future needs. Jendev is also supporting Jersey

Electricity’s next-generation ERP platform, which will enhance

operational efficiency, accuracy and decision-making

capabilities across the organisation.

Through this forward-looking strategy, Jendev is expanding

its digital capabilities and reinforcing its commitment to

delivering integrated, cloud-ready solutions that meet the

evolving demands of the energy sector and beyond.

JEBS

Operational performance and fuel switching

JEBS continued to support Jersey’s transition to a low-carbon

future by helping customers switch from fossil fuel heating

systems such as oil and gas to efficient all-electric alternatives.

This year, we completed a total of 246 fuel switch

acceptances, including 47 air source heat pump (ASHP)

installations. The strong growth in ASHP adoption reflects

rising customer demand for economical, low-energy

solutions that reduce emissions and support Jersey’s

decarbonisation goals.

EV charging infrastructure development

JEBS has also expanded the Island’s electric vehicle (EV)

charging network, with major installation projects including:

150kW ultra rapid chargers installed at St Aubin

and Gouray Hill.

50kW rapid charger installed at Goose Green

Car Park in St Peter.

128 home EV chargers installed across the Island,

supporting the increasing number of customers

transitioning to electric mobility.

Fleet electrification and

infrastructure enhancement

To strengthen Jersey Electricity’s own charging capabilities,

we installed 44 EV charging points (ranging from 7kW to

50kW) at the La Collette site. This infrastructure supports

both the Company fleet and staff vehicles, reflecting JEBS’s

commitment to leading by example.

The JEBS fleet is now fully electric, with the exception of the

Amenity Lighting MEWP vehicle, for which there is currently

no suitable electric alternative. The transition has delivered

significant savings in running and maintenance costs

compared to the previous diesel fleet.

Jersey Electricity

Annual Report and Accounts 2025

Jersey Electricity

Financial statements

Governance

Strategy

Werner Bornman

Technology Director

Our technology strategy continues

to evolve with purpose and precision.

This year has been marked by bold

investment, strategic innovation and

operational transformation – each

initiative designed to deliver tangible

benefits to our customers, enhance

internal capabilities and secure our

digital future.

Customer benefits

We’ve made significant strides in enhancing customer

experience through digital platforms and data-driven

insights. The deployment of My JE for Business marks a

pivotal moment in our commercial customer engagement

strategy. This platform empowers multi-site account holders

with real-time visibility into energy consumption, enabling

smarter decisions and improved sustainability outcomes.

Our Customer 360 model offers a unified view of customer

interactions, driving personalised engagement and

service excellence.

Leveraging infrastructure,

empowering people

This year marked another step forward in how we harness our

corporate infrastructure to support both strategic ambitions

and day-to-day operations. Building on the foundation of

our upgraded network and cloud-ready architecture, we

extended our investment into end-user systems and toolsets

that empower our people and enhance productivity.

We invested in additional infrastructure resilience, ensuring

a more stable and responsive digital environment for our

teams. Our investment in cloud computing and planning for

migration to modern data integration platforms reflects our

commitment to future-ready platforms.

Safeguarding our systems

In an increasingly complex cybersecurity landscape, we’ve

adopted a proactive and adaptive approach. Implementing

Zero Trust Network Architecture and adopting the NIST

Cybersecurity Framework during the year have elevated our

security posture.

We strengthened our data protection capability with

additional resources, established a cross-organisational

data governance oversight function and enhanced incident

response protocols. Cybersecurity and data protection

training completion reached 92%, reflecting our commitment

to preparedness and resilience.

Our investment in a modern meter data management

platform strengthens resilience, creates future flexibility,

and ensures customers have access to accurate data to

enable energy efficiency opportunities.

Internal operational benefits

and efficiency

FY25 saw strong progress in preparing for the rollout of

our next-generation ERP system, Business Central, across

the business.

We established a technology design authority to ensure

architectural cohesion and prevent duplication of investment.

This governance structure has enhanced change reporting

and risk management by integrating enterprise asset

management into our oversight processes.

Our infrastructure refresh programme laid the groundwork

for seamless cloud adoption. Upgrades to our corporate

fibre network, advanced storage and processing capabilities

have reinforced our operational backbone, maintaining

uptime at 99.95% for FY25.

We achieved further efficiency gains by aligning with ITIL

service management principles, vendor consolidation, cost

reduction initiatives and centralised technology spend.

JE Technology

Our technology investments are driven

by our goal to deliver smarter, more

connected and more efficient services that

create lasting value for our customers.

Jersey Electricity

Annual Report and Accounts 2025

Jersey Electricity

Financial statements

Governance

Strategy

JE Technology review

(continued)

Looking ahead

Strategic technology priorities for FY26

As we look to FY26, our technology roadmap is shaped by

a clear commitment to innovation, resilience and customer-

centric transformation. The following initiatives will be our

key areas of focus:

ERP replacement

Building on the foundational work completed in FY25,

including pilot deployment and production environment

setup, we will continue to roll out Business Central across

Jersey Electricity. This next phase will focus on user training

and full operational integration, enabling scalable and

efficient enterprise operations.

Next-generation smart meter investment

We will advance our next-generation smart meter

programme. This investment will unlock future energy

efficiency opportunities and enhanced service options

for our customers, supported by the new technology

platform solutions.

Evolve public network expansion

Continued investment in the Evolve public network will

support the growth of our electric vehicle infrastructure,

reinforcing our commitment to sustainable transport and

accessible charging solutions.

Launch of Evolve Home

FY26 will see the launch of Evolve Home, designed to bring

smart energy solutions directly into customers’ homes.

Cybersecurity and data protection investment

Through our established roadmaps, we will continue to

strengthen our cybersecurity posture and data protection

practices. This includes implementing the updated security

framework aligned to future risk detection and prevention,

enhancing incident response capabilities, and building on

our adoption of the NIST Cybersecurity Framework and

Zero Trust Architecture.

Jersey Electricity

Annual Report and Accounts 2025

Jersey Electricity

Financial statements

Governance

Strategy

IN FOCUS

The Smart Upgrade

Programme

Building a smarter business

The

Smart Upgrade Programme

is a strategic investment to modernise

the backbone of our business. By upgrading our ERP system, retail

point of sale, metering and billing infrastructure and further improving

our asset management tools, we’re laying the foundations for a

digital organisation that’s more efficient, responsive and ready for

the future.

This is more than a systems upgrade; it’s a business transformation.

We’re redesigning how we work, serve customers and manage our

operations to support long-term growth and resilience.

A key part of this transformation is the rollout of advanced metering

infrastructure, which will enable more flexible tariffs and pricing

options, helping us better meet the evolving needs of our customers.

These investments are not just about improving operations today.

They’re about future readiness: creating the digital infrastructure that

will support AI-driven technologies, smarter energy delivery and more

personalised customer experiences across our lines of business.

The

Smart Upgrade Programme

reflects our commitment to

innovation, growth and long-term value, for our customers, employees,

shareholders and the Island.

JE Technology review

(continued)

GROUP REVENUE

£146.2m

FY24: £135.7m

DIVIDEND

20.82p

FY24: £19.80p

NET CASH

£8.7m

FY24: £19.2m

GROUP PROFIT

BEFORE TAX

£14.2m

FY24: £15.1m

ENERGY

BUSINESS PROFIT

£12.7m

FY24: £13.0m

TAXATION

£3.1m

FY24: £3.4m

Financial review

Our financial performance in FY25

remained resilient in the face of

ongoing market challenges, supported

by strong revenue growth and a robust

balance sheet. Our power procurement

and hedging strategy continued to

protect customers from wholesale

market volatility.

Jersey Electricity

Annual Report and Accounts 2025

Jersey Electricity

Financial statements

Governance

Strategy

Group Financial Results

2025

2024

Revenue

£146.2m

£135.7m

Profit before tax

£14.2m

£15.1m

Earnings per share

35.90p

37.92p

Dividends per share

20.82p

19.80p

Proposed final dividends per share

12.60p

12.00p

Net Cash

£8.7m

£19.2m

In Year Return on Assets

7.4%

7.3%

Return on Assets: Five-year rolling

6.4%

6.3%

Net Cash is calculated as cash of £38.7m less borrowings of £30.0m; (FY24: £49.2m less £30.0m)

Powerhouse

The Powerhouse retail business reported a profit of £0.3m

(FY24: £0.6m), reflecting higher allocations of Group

technology-related costs and continued investment in

key transformation projects. During the year, the business

enhanced its showroom offering to support growth in electric

bike sales and improve the overall customer experience, while

also expanding its capabilities through the establishment of

an in-house appliance servicing operation.

JEBS

JEBS, the Group’s building services division, recorded

a break-even result of £nil (FY24: £0.2m). Performance

was affected by the one-off realignment of annual leave

entitlement for employees and weaker-than-expected

results in amenity lighting.

Other business units

Other business units – including Jersey Energy, Jendev,

Jersey Deep Freeze and fibre-optic lease rentals – reported

a small combined loss, primarily due to the reallocation of

internal costs.

Financial position and cash flow

Net interest costs

Net interest costs for the year were £0.3m (FY24: £0.8m),

reflecting the net balance between interest income on

deposits and the cost of long-term borrowings. The taxation

charge was £3.1m (FY24: £3.4m), consistent with the underlying

profit performance.

Earnings per Share and Dividends

Basic and diluted earnings per share were 35.90p (FY24:

37.92p). Dividends paid during the year, net of tax, totalled

20.82p (FY24: 19.80p). The proposed final dividend of 12.60p

(FY24: 12.00p) represents a 5% increase on the prior year,

maintaining a dividend cover of 1.7 times (FY24: 1.9 times).

Cash flow and liquidity

Net cash at the year end was £8.7m (FY24: £19.2m), comprising

£30.0m of borrowings offset by £38.7m of cash and cash

equivalents. The £10.5m reduction in net cash during the

year primarily reflects increased capital investment to

support the delivery of the Group’s strategic infrastructure

and technology programmes.

Financial review

(continued)

Financial performance

Group revenue

Group revenue for the year ended 30 September 2025 was

£146.2m (FY24: £135.7m), an increase of 7.7% on the prior year.

This growth was primarily driven by a stronger performance

in our Energy business, where revenue rose to £118.4m

(FY24: £108.1m), reflecting the tariff adjustments implemented

in January 2025, fuel switching and increased customer

demand following a colder-than-average winter.

The overall economic landscape for our non-energy

businesses remained challenging. Revenue in the Powerhouse

retail business increased by approximately 1.7% to £18.1m

(FY24: £17.9m), reflecting modest growth as inflationary

pressures continued to influence consumer spending and

operating costs.

Property revenue increased by £0.3m to £3.3m (FY24: £3.0m),

driven by the letting of additional commercial space at the

Powerhouse site and near full occupancy of our residential

portfolio by year-end. Revenue from JEBS, our building

services business, was £4.7m (FY24: £4.8m). Other business

segments collectively reported a small operating loss of

£0.2m on revenue of £3.6m (FY24: £3.8m), reflecting ongoing

technology investment and lower-than-anticipated sales

during the period.

Cost of sales and operating expenses

Cost of sales for the year totalled £92.7m (FY24: £83.2m),

reflecting an increase in manpower, costs associated with

the Smart Upgrade and general inflation across materials

and operating inputs.

Operating expenses increased to £38.7m (FY24: £37.3m);

however, this increase includes a £3.0m one-off ex-gratia

past service cost of the Group’s defined benefit pension

scheme. Excluding this non-recurring charge, operating

expenses reduced, reflecting efficiencies delivered across

the business and the increase year-on-year capitalisation

of labour associated with major programmes. These

underlying improvements were achieved while continuing

to invest in the systems, people and infrastructure needed to

support the Group’s decarbonisation and digital

transformation objectives.

Group profit before tax

Group profit before tax for the year ended 30 September

2025 was £14.2m (FY24: £15.1m), representing a (6)% change

year on year. The overall result reflects strong operational

performance in the Energy business, partially offset by

higher cost pressures across the Group.

Business unit performance

Energy business

The Energy business delivered a robust performance during

the year, with revenue of £118.4m (FY24: £108.2m) and profit

before tax of £12.7m (FY24: £13.0m). The year-on-year

improvement reflected the January 2025 tariff adjustment,

higher customer demand during the colder winter period,

and continued efficiency gains. These factors contributed

to a return on assets employed within the Group’s long-term

target range of 6 to 7% on a rolling five-year basis.

Electricity unit sales increased slightly year on year to

616 million kWh (FY24: 609 million kWh). The Group continued

to source the majority of its electricity from low-carbon

imports, with approximately 93.7% supplied from France, 5.3%

from Jersey’s Energy from Waste plant, and 1.1% generated

locally through oil-fired and solar generation.

Property

The Property division reported a profit, excluding investment

property revaluation movements, of £1.3m (FY24: £0.9m).

The value of the Group’s property portfolio decreased by

£0.9m to £25.8m, reflecting broader conditions in the local

property market.

Jersey Electricity

Annual Report and Accounts 2025

Jersey Electricity

Financial statements

Governance

Strategy

Wholesale energy market

Market conditions

Global wholesale electricity markets have experienced

sustained volatility in recent years, with prices peaking in

2022 following disruptions to European energy supplies

caused by the Russia–Ukraine conflict. While prices have

moderated, they remain elevated relative to historical norms,

influenced by geopolitical uncertainty, generation costs,

and the recovery of demand across Europe.

During 2024, while wholesale electricity prices stabilised

from the extreme peaks of 2022, they remained significantly

elevated compared with pre-crisis levels. Market dynamics

continued to be influenced by carbon pricing, weather-

dependent renewable generation, and broader

macroeconomic factors, including interconnector

maintenance and supply constraints.

Group exposure and mitigation

As the sole electricity supplier in Jersey, the Group imports

approximately 94% of the island’s electricity from Électricité

de France (EDF) via the Channel Islands Electricity Grid (CIEG).

While local demand remains relatively stable, the Group is

indirectly exposed to European wholesale price volatility and

foreign exchange movements, as electricity purchases are

denominated in euros. The current EDF supply agreement

runs until December 2027, with a new contract expected to

commence in January 2028.

The Group’s treasury function manages financial risks arising

from wholesale electricity purchases, foreign exchange,

interest rates, liquidity, and counterparty exposure. Electricity

purchases for 2026 and 2027 are now materially hedged,

providing significant protection against price volatility.

A rolling three-year foreign exchange hedging programme

manages the currency risk and supports long-term tariff

planning. Interest rate exposure is limited through a

conservative debt profile, including a fixed-rate £30m private

placement, while liquidity is actively managed via short-term

deposits, committed committed facilities, and a £10m revolving

credit facility.

Tariff management

In response to sustained wholesale price pressures and

inflation, a 7.5% tariff increase was implemented in January

2025 and a 2.5% tariff rise announced to come into effect in

March 2026.

These measures have enabled the Group to maintain

standard domestic retail electricity prices approximately

20% below the UK average

, ensuring stable and affordable

energy for customers despite elevated wholesale market

conditions.

Looking ahead

The current EDF supply contract runs until December 2027.

JE is actively preparing for contract renewal to maintain

long-term affordability and reliability.

The treasury and hedging framework will continue to evolve

to address potential risks from future market volatility or

macroeconomic shifts.

Continued monitoring of wholesale electricity prices, foreign

exchange exposure, and market dynamics will inform tariff

planning and risk mitigation strategies.

Mott MacDonald, “Channel Islands Electricity Market Review,” July 2025.

Financial review

(continued)

Defined Benefit Pension

Scheme arrangements

As at 30 September 2025, Jersey Electricity’s Defined Benefit

Pension Scheme continues to be closely monitored due to

its sensitivity to financial market movements. The Scheme

surplus under IAS 19 remains strong at £27.3m (FY24: £28.0m)

before deferred tax and £21.8m (FY24: £22.4m) net of

deferred tax. During the year, Scheme liabilities decreased

by approximately 7.7% while assets decreased by 6.4%,

contributing to a net decrease in the surplus of £0.6m.

The Scheme continues to employ a liability-driven investment

strategy to mitigate mismatches between asset and liability

values caused by changes in interest rates and inflation.

The discount rate remains a key actuarial assumption;

small changes can materially affect reported liabilities –

for example, a 0.5% change would adjust liabilities by

approximately £6m.

The latest triennial actuarial valuation, effective 31 December

2024 and finalised during FY25, confirmed a surplus of

£11.7m, reaffirming the scheme’s robust funding position.

The final salary scheme remains closed to new members

(since 2013), with new employees offered defined

contribution arrangements.

During FY25, the Trustees proposed a one-off increase to

pensions in payment of 3 to 12% (dependent on the date of

retirement), approved by the Board. The resulting Past Service

Cost, estimated at approximately £3.0m, has been recognised

as a one-off charge to the FY25 income statement under

IAS 19. The Scheme continues to be prudently managed,

with the current Company contribution rate maintained at

20.6% until December 2025 and regular actuarial oversight

providing a resilient framework for long-term obligations.

The next triennial actuarial valuation is scheduled with an

effective date of 31 December 2027. Overall, while the Scheme

remains exposed to market fluctuations, the combination of

prudent funding, disciplined LDI management and ongoing

actuarial review continues to support the long-term

sustainability of the pension arrangements.

Returns to Shareholders

62% of the Ordinary share capital of the Company is owned

by the Government of Jersey with the remaining 38% held

by around 600 shareholders via a full listing on the London

Stock Exchange. Of the holders of listed shares, Huntress (CI)

Nominees Limited owns 5.4m (46%) of our ‘A’ Ordinary shares

representing 17% of our overall Ordinary shares and around

5% of voting rights. This nominee company is held within the

broker firm Titan Wealth (CI) Limited which has placed our

stock with a number of private clients, and a fund, residing

largely in the Channel Islands.

During the year, the ordinary dividend paid increased by

5%, rising from 19.80p in FY24 to 20.82p.The proposed final

dividend for FY25, at 12.60p, represents a 5% increase

on the previous year’s final dividend of 12.00p and remains

consistent with the Group’s policy of delivering sustained

real growth in shareholder returns over the medium term.

Inflationary pressures in Jersey have continued to moderate

from the elevated levels seen in 2022 and 2023, with the local

Retail Price Index (RPI) now trending towards more stable

levels. The Board remains committed to maintaining a

progressive and sustainable dividend policy while supporting

the Group’s ongoing investment in infrastructure and energy

transition initiatives.

Over the past 15 years, the ordinary dividend (excluding

special dividends) has risen from 5.85p to 20.82p in FY25,

reflecting a consistent record of long-term value creation

for shareholders.

At 30 September 2025, the Company’s share price was

£4.70 (FY24: £4.30), giving an implied market capitalisation

of approximately £144m compared with net assets of

around £254.1m. The share price performance reflects the

continued illiquidity of the Company’s shares, primarily due

to the presence of a single large majority shareholder and

the relatively limited number of shares in public circulation.

These factors restrict management’s ability to influence

short-term share price movements.

To enhance transparency and improve understanding of

the Group’s performance and value proposition among the

wider investment community, the Company continues to

engage Edison, an independent investment research firm,

to produce regular analysis and commentary on its financial

and operational performance.

Over the past 15 years, the Company’s share price has

increased from £2.31 to £4.70, reflecting long-term value

creation despite limited trading activity.

Jersey Electricity

Annual Report and Accounts 2025

Jersey Electricity

Financial statements

Governance

Strategy

Viability statement

In accordance with Provision 31 of the UK Corporate

Governance Code, the Directors have assessed the prospects

and long-term resilience of the Group over a five-year

period to 30 September 2030. This period is consistent with

the Group’s five-year Company Business Plan and reflects

the timeframe over which the Board principally assesses

strategy, capital investment requirements and key operational

programmes, including the Smart Upgrade, subsea cable

replacement strategy, on-island solar generation and the

transition to the new EDF supply contract from January 2028.

Assessment process and governance

The assessment was undertaken as part of the Group’s

established risk management and internal control framework,

supported by detailed financial modelling and scenario

analysis. Management’s analysis was reviewed by the Audit

and Risk Committee, which challenged key assumptions,

scenario design and mitigation plans before recommending

the assessment to the Board. The Board also considered

the Group’s current financial position, liquidity resources,

debt structure, investment commitments and access to

funding markets.

Key assumptions and financial resilience

The five-year Plan incorporates the Group’s vertically

integrated user-pays tariff structure and Return on

Assets (ROA) model, which supports efficient recovery of

operating costs and wholesale electricity procurement

while maintaining competitive tariffs. The plan reflects

forecast electricity demand and customer behaviour,

expected investment phasing, hedging strategies, and the

Group’s robust balance sheet position, including committed

long-term debt funding and prudent liquidity management.

The Group also retains the ability to defer discretionary

capital expenditure if necessary without compromising

operational capability or security of supply.

Scenario analysis and stress testing

The Directors considered a range of severe but plausible

downside scenarios reflecting the principal risks facing the

Group. These included:

Adverse movements in wholesale electricity prices

Reductions in electricity volumes driven by customer

energy efficiency or slower-than-expected switching

from gas/oil heating to electric solutions

Inflationary pressures and supply chain delays affecting

key capital programmes

Under all scenarios modelled, the Group maintained

adequate liquidity and financial headroom. The ROA tariff

model and user-pays framework continued to support cost

recovery even under scenarios of reduced consumption,

while the Group’s capex phasing flexibility provided a

further contingency should conditions deteriorate.

Limitations and severe but remote scenarios

The Board also considered circumstances that could

challenge the Group’s longer-term viability. These would

require a combination of events significantly more extreme

than the severe but plausible downside scenarios modelled,

including concurrent constraints on the Group’s ability to

adjust tariffs, significant failures in electricity procurement

mitigation, and prolonged wholesale electricity market

dislocation. The Board considers the likelihood of such

conditions occurring simultaneously within the assessment

period to be remote.

Conclusion

Based on this assessment, the Directors have a reasonable

expectation that the Group will be able to continue to

operate and meet its liabilities as they fall due over the

five-year period to 30 September 2030. This statement is

not a guarantee of future performance but is intended to

provide shareholders with an informed assessment of the

Group’s forward-looking resilience.

Katy McBride

Interim Finance Director

Financial review

(continued)

Jersey Electricity

Annual Report and Accounts 2025

Jersey Electricity

Financial statements

Governance

Strategy

Effective risk management is key to

delivering our strategic objectives and

protecting long-term shareholder value.

By actively considering risk in every

decision, we can embrace opportunities

while mitigating potential threats.

The Board recognises that risk management is designed to

provide reasonable, but not absolute, assurance against

material loss or misstatement.

Governance – Board responsibility

The Board retains overall accountability for our risk

management and internal control systems. Key

responsibilities include:

Defining risk appetite:

Establishing the nature and level

of risk we are willing to accept to achieve our strategic

objectives.

Assessing principal and emerging risks:

Conducting

robust evaluations to understand potential impacts on

strategic delivery.

Reviewing mitigation plans:

Ensuring appropriate

controls and response plans are in place.

Identifying emerging risks:

Maintaining oversight of

new threats and opportunities.

Approving disclosures:

Ensuring the annual report

presents a transparent summary of principal risks,

mitigations and internal controls.

Governance – Audit and Risk

Committee (ARC) responsibility

The ARC supports the Board by monitoring the effectiveness

of the risk management framework and internal controls.

Its responsibilities include:

Reviewing principal and emerging risks, including

aggregate, bottom-up risk assessments.

Approving the annual internal audit plan and

evaluating reports on internal control effectiveness.

Conducting deep dives on high-priority risks and

emerging matters.

Monitoring management’s implementation of audit

and risk recommendations.

Five Lines of Responsibility model

During FY25, the Board approved an upgrade to the Group’s

risk governance structure, evolving from the traditional

Three Lines of Defence model to a Five Lines of Responsibility

model. This change reflects the view that risk management

is the responsibility of the entire Company and provides a

clearer structure for accountability and oversight.

Line of responsibility

Description

First Line

Operational

management

Owns and manages risks.

Executes day-to-day activities,

identifying, assessing and

managing risks arising from

business operations, processes

and systems.

Second Line

Risk management and

compliance functions

Policy setting, oversight and

risk insights. Monitors operational

management, supports compliance

and ensures prudent risk-taking.

Third Line

Independent

assurance

Internal Audit co-ordinates

with other functions to provide

objective assurance to the Board,

ARC, and ELT on the effectiveness

of risk management, controls

and governance.

Fourth Line

ELT and ELT

risk sponsor

Sets the tone and approach to

risk management, balancing

value creation with operational

efficiency and effective risk

ownership across lines 1 to 3.

Fifth Line

Board of Directors

and ARC

Provides oversight and governance

in the best interest of JE and our

shareholders. The ARC has

delegated responsibility to

ensure the effectiveness of the

risk management framework.

Note: Reporting lines are directional and collaborative, ensuring alignment

across all five lines.

This model strengthens accountability, clarifies roles and

embeds risk management across all levels, from operational

management through to Board oversight, reinforcing a

risk-aware culture and enabling us to respond effectively

to emerging challenges and opportunities.

Fifth Line

JE Board of Directors

Governance and oversight

Provides oversight of management in the best interests of the Company and shareholders

Audit and Risk Committee (ARC)

Governance and oversight

Delegated responsibility from the Board for ongoing governance

and oversight of the risk management framework

Fourth Line

ELT risk sponsor

Sets the Company’s tone and

approach to risk management

Balancing value creation with operational

efficiency and effective risk ownership

across lines 1 to 3.

•

Established and owns risk management

policy and processes.

•

Provides updates to the ELT, ARC

and Board.

Fourth Line

Executive Leadership Team (ELT)

Sets the Company’s tone and approach to risk management

Balancing value creation with operational efficiency

and effective risk ownership across lines 1 to 3.

•

Defines and recommends the risk appetite

framework and principles to the Board.

•

Are exemplars of risk management.

•

Identifies principal and emerging risks.

•

Responds and monitors company risks.

First Line

Operational management

Owns and manages the risks

Executes day-to-day activities,

identifying, assessing and

managing risks arising from

business operations, processes

and systems.

Second Line

Risk management &

compliance functions

Policy setting, oversight

& risk insights

Monitors operational

management, supports

compliance and ensures

prudent risk-taking.

Third Line

Independent assurance

Provides independent assurance

Internal audit co-ordinates

with other functions to provide

objective assurance to the

Board, ARC, and ELT on the

effectiveness of risk

management, controls

and governance.

External

Audit

External

third-party

assurance

Provides the

highest form

of impartial

assurance.

Accountability & reporting

for evaluations

Delegation, direction

& oversight

External assurance

reporting

Collaboration

& communication

Group risk management

Jersey Electricity

Annual Report and Accounts 2025

Jersey Electricity

Financial statements

Governance

Strategy

Group risk management

(continued)

Risk management framework

The Group’s risk management framework provides a

consistent, end-to-end approach to identifying, assessing,

managing and reporting risks.

Key steps include:

Identify risks:

Business units identify risks affecting

daily operations and escalate material issues to ELT.

Assess and evaluate:

Each risk is evaluated for likelihood

and potential impact, considering current controls.

Mitigate:

Executive risk owners ensure that treatment

plans reduce risks to within agreed appetite.

Monitor and report:

ELT reviews consolidated risks,

emerging threats and opportunities and submits to

ARC and the Board for challenge and approval.

Assure:

Independent verification through internal

audit and external assurance activities supports

robust risk governance.

Risk appetite

The Board has established risk appetite statements for

the Group’s principal risks, which guide decision-making

and reflect the balance between opportunity and

acceptable exposure:

Appetite level

Description

Adverse

Only the lowest level of risk is acceptable;

preferred for low-risk delivery options.

Cautious

Low-level risks accepted where likely

impacts are minor – reward potential

is modest.

Moderate

Exposure to moderate risks acceptable

to achieve worthwhile outcomes.

Open

Willing to take calculated risks for high

likelihood of successful delivery and

meaningful value.

Enterprise

Ambitious, innovative approach

accepting greater uncertainty to

achieve transformational outcomes.

Our principal risks and uncertainties

During the financial year ended 30 September 2025, the Board

and ELT undertook a comprehensive review of the Group’s

risk register, incorporating fresh perspectives from newly

appointed Non-Executive Directors. This process included

refining risk descriptions, reassessing the effectiveness of

mitigating controls and factoring in current internal and

external business drivers. The outcome of this review informed

movements across most principal risks, reflected in updated

ratings and heatmap positioning.

Two risks have increased from medium to high because,

although our controls reduce the likelihood of an incident,

the potential impact remains significant. For health, safety

and environment, the probability of a serious event is rare,

but the potential consequences are severe due to the

inherent hazards associated with our operations. Similarly,

cyber threats continue to grow in sophistication. Despite

robust protective measures, a successful cyber-attack could

substantially disrupt our operations result in a financial loss

and cause

reputational damage, meaning the overall risk

rating has increased.

Risks with increased rating:

Health, safety and environment – medium to high

The likelihood of a serious incident is low, but the

consequences would be significant.

Cyber threat and information security – medium to high

The potential impact of a successful cyber-attack

remains high despite strong controls.

Pace of change (formerly energy market share growth)

– low to medium

. Accelerating market change and

innovation pressures have increased exposure.

Disruptive technology and innovation (formerly strategy

and disruptive technology) – low to medium

. Rapid

technological shifts and digital or AI-enabled business

models heighten competitive pressure.

Risks with decreased rating:

Political policies and regulatory change – high to

medium

. The regulatory review concluded without

material findings, creating a more stable environment.

Market volatility and tariff prices – high to low

Easing wholesale prices and our hedging strategy

have reduced exposure.

Defined Benefit Pension scheme – medium to low

Regular valuations and active oversight by the pension

scheme Trustees enable the Group to closely monitor the

scheme’s funding position and manage its long-term

commitments responsibly.

Introduction of new risk:

Supply chain – new

. A new principal risk has been

introduced to reflect increasing global and local

dependencies. Factors such as geopolitical instability,

climate impacts and supply shortages have increased

the Group’s exposure.

Principal risks heat map

Likelihood

Almost

certain

Likely

Possible

Unlikely

Rare

Insignificant

Minor

Moderate

Major

Severe

Impact

Pace of change

Reliable and secure

supply of energy

Data loss or

regulatory breach

Disruptive technology

and innovation

People and culture

Cyber threat and

information security

Political policies and

regulatory change

Health, safety

and environment

Defined benefit

pension scheme

Market volatility

and tariff prices

Climate change

Supply chain

(new risk)

Increasing

Stable

Decreasing

Movement in FY25

Jersey Electricity

Annual Report and Accounts 2025

Jersey Electricity

Financial statements

Governance

Strategy

Group risks and strategy

These tables present the Group’s principal risks, including

a description of each risk, the risk owner, the risk trend,

the risk appetite and key mitigating actions. The Board

considers these to be the most significant risks that could

materially affect the Group’s financial position, operational

performance and ability to achieve its strategic objectives.

These risks do not represent the entirety of risks faced by

the Company, nor are they listed in order of priority. Other

risks, whether currently unknown or considered less

material, may also have an adverse effect on the business.

The Group’s principal risks are closely linked to our strategic

objectives of delivering safe, reliable, affordable, and

sustainable energy. Each risk has the potential to influence

the successful delivery of these objectives. The Board ensures

that mitigating actions are in place to reduce the likelihood

of adverse events or limit their potential impact. By actively

monitoring and managing these risks, we aim to protect

operational performance, maintain stakeholder confidence

and support long-term strategic priorities. This includes the

transition to low-carbon energy, investment in technology and

infrastructure and the delivery of customer-focused initiatives.

Group risk management

(continued)

We categorise our risks into four areas to provide the appropriate level of governance and oversight to effectively manage

them, as summarised in this table.

Risk category: Strategic risks

Pace of

change

Disruptive technology

and innovation

Climate

change

Description

Failure to innovate, grow market

share in home heating solutions,

or respond to shifting consumer

demands may result in strategic

underperformance and the

need to adjust pricing structures

to maintain financial viability.

Failure to adopt or respond to

emerging energy technologies,

or disruptive business models

enabled by digitalisation and AI,

leads to loss of market relevance

and missed growth opportunities.

Risk that climate change increases

operational costs, disrupts

infrastructure, and requires ongoing

investment to maintain a resilient

and sustainable energy system.

Risk owner

Business Development Director

Chief Operating Officer

Movement

Increasing

Stable

Risk

appetite

Open

Cautious

Key

mitigating

actions

Promoting low-carbon and

renewable energy

– Highlight

JE’s low-carbon and renewable

credentials to differentiate

products and support the

energy transition.

Stakeholder engagement

– Strengthen relationships with

key stakeholders, including

the Government of Jersey, to

inform decisions and influence

market developments.

Innovation and service

development

– Drive new

product development through

the NPD team, streamlining

processes like Enhanced

Service Experience, and

improving customer experience.

Capacity and strategic

alignment

– Expand JEBS

operations and set Group-

wide objectives to support

growth, electrification, and our

three-year strategic ambitions.

Focus on growth and

technology

– Regularly review

growth opportunities and

technological advancements

to remain competitive.

Strategic innovation initiatives

– Implement key strategic

projects to drive innovation

and support business growth.

Economic and risk monitoring

– ELT tracks macroeconomic

factors and evaluates growth

opportunities against risk

appetite, values and

Company principles.

Governance and oversight

–

PMO oversight of projects and

formal AI governance ensures

ethical, secure, and compliant

use of technology.

Low-carbon energy system

–

Well-invested infrastructure

capable of supporting a

zero-carbon future.

Renewable energy and

EV support

– Commit to

government environmental

objectives through renewable

projects and expanded EV

charging infrastructure.

Climate integration across

operations

– Embed energy

transition and climate

considerations into supply

chain, procurement and

business processes.

Sustainability oversight

–

Sustainability Steering

Committee coordinates

Company-wide initiatives

and monitors performance.

Jersey Electricity

Annual Report and Accounts 2025

Jersey Electricity

Financial statements

Governance

Strategy

Risk category: Financial risks

Political policies and

regulatory change

Market volatility

and tariff prices

Defined Benefit Pension scheme

Description

Risk that future regulation or

energy policy changes misalign

with the business model,

disrupting operations and

impacting our stakeholders.

Risk that adverse movements

in market conditions will

negatively impact tariffs causing

reputational damage and

making it difficult to compete

against other energy providers.

Risk that market volatility or

changes in actuarial assumptions

impact the scheme’s valuation

and financial reporting, while

errors in pension calculations

or administration could lead to

incorrect payments and

member dissatisfaction.

Risk owner

Interim Finance Director

Movement

Decreasing

Risk

appetite

Cautious

Moderate

Cautious

Key

mitigating

actions

Balanced strategic objectives

– Ensure the Group meets its

role as the primary energy

provider while addressing the

needs of diverse stakeholders.

Transparent stakeholder

communication

– Maintain

open and regular dialogue

with key stakeholders

and policymakers.

Performance benchmarking

– Compare operational and

financial performance against

peer jurisdictions using key

industry metrics.

Political and legislative

monitoring

– Track and respond

to regulatory and policy

developments, including the

Government’s Energy Plan.

Power purchase agreement

–

Secure contract with EDF in

place until 31 December 2027.

Treasury and hedging

oversight

– Annual review and

Board approval of hedging

and treasury policies.

Regular monitoring and

reporting

– Continually review

financial risks and hedging

positions, providing updates

to management, the ARC and

the Board.

Tariff management

– Monitor

pricing daily to align tariff

adjustments, where feasible,

with Jersey RPI levels.

Closed to new members

–

The Defined benefit scheme has

been closed to new entrants

since 2013.

Ongoing oversight and

actuarial review

– Trustees

regularly monitor scheme

funding, with independent

actuarial assessments at

year-end.

De-risking and LDI strategy

–

The Trustees have implemented

a Liability-Driven Investment

(LDI) strategy to reduce

exposure to movements in the

value of pension liabilities,

complemented by sensitivity

analysis on key assumptions.

Formal triennial valuation

–

Every three years, a formal

valuation reports on

scheme performance

and funding position.

Group risk management

(continued)

Risk category: Operational risks

Reliable and secure

supply of energy

Health, safety

& environment

Description

Risk that we are unable to effectively manage and

maintain the energy grid and network assets

resulting in frequent disruption to supply, including

an Island-wide power outage, causing reputational

damage, potential loss of customers and/or calls

for regulation.

The risk of harm to people, property, or the environment

resulting from the business’s operations, including the

potential for incidents that could affect wellbeing,

cause serious injury or death, compromise asset

integrity, or damage ecological conditions.

Risk owner

Chief Operating Officer

Movement

Stable

Increasing

Risk

appetite

Cautious

Averse

Key

mitigating

actions

Robust processes and preventive procedures

– Established processes and protocols minimise

unplanned outages and service interruptions.

Import supply resilience

– Three subsea cables to

France provide redundancy for imported energy.

Supplier engagement

– Ongoing dialogue with

suppliers monitors developments that could affect

security of supply.

On-Island generation and asset management

– Local generation capacity reduces reliance on

a single fuel source or technology, supported by a

continuous repair and maintenance programme

to optimise asset life.

Proactive safety and environmental culture

–

Nurture culture across the organisation with safety

representatives, regular site inspections and ongoing

role-specific training.

Performance monitoring and Board reporting

–

Health, Safety & Environment team track HSE

performance and present as a dedicated agenda

item at each Board meeting.

Incident reporting and analysis

– Record accidents,

incidents and near misses and analyse trends and

root causes to inform continuous improvement.

Standards and compliance oversight

– HSE policies

and procedures set standards and ensure ongoing

compliance across all operations.

Jersey Electricity

Annual Report and Accounts 2025

Jersey Electricity

Financial statements

Governance

Strategy

Risk category: Operational risks

People

and culture

Supply

chain

Description

Risk that the business is unable to attract, develop

and retain a skilled, diverse, and responsible

workforce and leadership team, or maintain a

culture that supports employee wellbeing, ethical

behaviour and effective decision-making.

Disruptions to the availability, reliability or cost of

critical goods and services could impact our ability to

maintain operations and deliver services effectively.

Risk owner

Director of People and Culture

Chief Operating Officer

Movement

Stable

NEW

Risk

appetite

Moderate

Cautious

Key

mitigating

actions

Workforce planning and succession

– Long-

range planning and annual succession reviews

for leadership and critical roles are supported

by replacement charts to anticipate leavers and

skill gaps.

Talent development and engagement

– School

engagement programmes, apprenticeships,

the JE careers website, and a skills manager

will encourage STEM careers and support

training initiatives.

Diversity and inclusion

– Our ongoing strategy

to build diversity across all roles and levels is

supported by global recruitment and inclusive

hiring practices.

Culture and values

– A continuous focus on

Company values and culture is reinforced through

codes of conduct, speak up policies, and other

HR frameworks to align with the Group’s purpose.

Supplier evaluation and oversight

– Formal

due diligence and performance monitoring

ensure suppliers meet JE’s standards and

contract obligations.

Procurement and sourcing strategies

– Long-term

framework agreements, alternative suppliers

and minimum stock levels secure critical goods

and services.

Supply chain risk assessment

– Periodic reviews

identify emerging geopolitical, logistical and

environmental risks.

Integration with business continuity

– Supply chain

resilience is incorporated into crisis management

plans, supported by monitoring of global markets

and commodity trends.

Group risk management

(continued)

Risk category: Technological risks

Data loss or

regulatory breach

Cyber threat and

information security

Description

Data loss, release or misuse of personal and

confidential information could result in regulatory

breaches, highly publicised investigations, fines

and reputational damage.

Loss or disruption to critical systems could cause

major impact to operations and malicious actions

resulting in system breaches (including data

breaches), financial loss, system outages, publicised

investigations, fines and reputational damage.

Risk owner

Director of Technology

Movement

Stable

Increasing

Risk

appetite

Averse

Key

mitigating

actions

Dedicated oversight

– Appointed a data

protection officer and established an internal

privacy governance structure.

Policies and compliance

– Maintain well-

documented processes, policies and ongoing

compliance programmes, including data library

reviews, and monitor retention and destruction

schedules.

Risk assessment and monitoring

– Combine

enhanced Data Protection Impact Assessments

with continuous risk monitoring.

Staff awareness and training

– Undertake

ongoing training to recognise that breaches are

often non-technical, making awareness the first

line of defence.

Threat prevention and detection

– Install antivirus,

malware protection, firewalls, email scanning,

internet monitoring and systems to identify and

block malicious domains and IPs.

Access and network security

– Maintain policies

for administrator, privileged and service accounts,

as well as multi-factor authentication for core

applications, and regularly monitor network activity.

Cybersecurity testing and awareness

– Undertake

penetration testing, phishing simulations and regular

cyber awareness training across the Group.

Partnerships and expertise

– Expand cybersecurity

partnerships and deliver ongoing training for

technology teams to stay ahead of emerging threats.

Jersey Electricity

Annual Report and Accounts 2025

Jersey Electricity

Financial statements

Governance

Strategy

Emerging risks

We continue to monitor emerging threats and

opportunities, including:

Supply chain dependencies

– reflecting global and local

material supply vulnerabilities.

Competition in energy market

– potential new entrants

and changing market structure.

Extreme weather events

– climate-driven

operational disruption.

Talent attraction and retention

– workforce shortages

and demographic pressures.

Mental health and wellbeing

– affecting productivity

and operational safety.

Disruptive technology

– accelerating renewable energy

innovation and digitalisation.

Sophisticated cyber threats

– rapidly evolving attack

vectors and AI-enabled threats.

Preparation for Provision 29 of the

UK Corporate Governance Code

The Audit and Risk Committee oversees enhancements to

our internal control and assurance framework. In anticipation

of Provision 29 of the 2024 UK Corporate Governance Code

– which will apply to the Group’s financial year commencing

1 October 2026 – we have initiated preparatory work to

ensure we are ready.

At this stage, we have identified the material controls which

are adequately documented. We recognise further work

will be required as this process develops and will continue

to monitor progress throughout FY26 to ensure we are well

positioned for full compliance in FY27.

Group risk management

(continued)

Climate‑related disclosures

Jersey Electricity has been reporting

under the guidelines established by the

Task Force on Climate-related Financial

Disclosures (TCFD) since 2022, and we

continue to follow these principles in

this annual report.

The International Sustainability Standards Board (ISSB) is

responsible for the TCFD framework. The ISSB’s International

Financial Reporting Standards for sustainability (IFRS S1

and S2), are in the process of being endorsed in the UK.

UK Government consultations ended on 18 September 2025

with final standards are expected in late 2025. Implementation

will likely begin for financial years starting in 2026 or early

2027, depending on the outcome of the consultation process.

The table below reflects our Compliance Statement.

Governance

Strategy

Risk Management

Metrics & Targets

Compliant



A. Describe the

Board’s oversight of

climate-related risks

and opportunities

A. Describe the

climate-related risks

and opportunities

the organisation has

identified over the short,

medium, and long term

A. Describe the

Board’s oversight of

climate-related risks

and opportunities

Disclose the metrics and

targets the organisation

uses to assess climate-

related risks and

opportunities in line

with its strategy and risk

management processes



B. Describe management’s

role in assessing and

managing climate-

related risks

and opportunities

Describe the impact

of climate-related risks

and opportunities on

the organisation’s

businesses, strategy

and financial planning

B. Describe management’s

role in assessing and

managing climate-

related risks

Disclose scope 1, 2, and

if appropriate scope 3

greenhouse gas (GHG)

emissions and the

related risks



C. Describe the resilience

of the organisation’s

strategy taking into

consideration climate-

related scenarios

including a 2°C or

lower scenario

C. Describe how processes

for identifying, assessing

and managing climate-

related risks are

integrated into the

organisations overall

risk management

Describe the targets used

by the organisation to

manage climate-related

risks and opportunities

and performance

against targets

Jersey Electricity

Annual Report and Accounts 2025

Jersey Electricity

Financial statements

Governance

Strategy

Governance

The Board has overall responsibility for climate-related risks and opportunities and

monitors progress of our strategic priorities, ensuring our actions and responses

to climate change risks are proportionate.

Our Governance reporting structure

JE PLC Board

Oversight of company strategy and the long term success of JE

Chief Executive and Executive Leadership Team

Responsibility for the development and implementation of JE’s strategy

and objectives rests with the Chief Executive, who is supported by the ELT

Sustainability Committee and Working Groups

Senior level sponsors and subject matter experts sets and measure performance

Nominations

Committee

Remuneration

Committee

Audit & Risk

Committee

The Board delegates certain matters to its principal committees

Reporting

Informing

Reporting

Sustainability Steering Group

Executive and senior management

oversight of sustainability

performance against our

Sustainability Framework

Disclosures and Reporting Group

Ensure compliance with disclosure obligations.

Considering materiality, reliability, accuracy

and timeliness of information disclosed and

assessment of assurance received

Informing

Reporting

Informing

Reporting

TACTICAL

STRATEGIC

REPORTING

Reported at each ARC

and Board meeting

CEO and ELT meet every

two months to review

Meets monthly

Group risk management

(continued)

Role of the Board

The Board’s vision and strategy include achieving net zero

and supporting Jersey’s energy transition. Two members

bring ESG and risk expertise, strengthened through ongoing

engagement at conferences and seminars and through

regulators. The Audit and Risk Committee has oversight of

climate-related risks.

Management role

The CEO is ultimately responsible for Jersey Electricity’s

preparedness for adapting to climate change and driving

our strategy. Our Corporate Scorecard measures our overall

performance and is used to measure remuneration for the ELT.

Our Interim Finance Director has executive responsibility for

risk management and has established short, medium and

long-term planning horizons to ensure we have adequate

resources to understand and respond to climate-related risks.

Our governance framework enables the ELT to understand

climate-related risks and opportunities and ensure we

remain on track to meet our climate change targets.

Sustainability Steering Group

The Sustainability Steering Group, comprising all ELT members

except the CEO, oversees sustainability efforts and ensures

they align with strategic goals. It receives input from the

Environment and Sustainability Committee and has delegated

authority to approve decarbonisation projects supporting

climate targets.

Disclosure reporting Group

The Group is responsible for consistent, accurate and

reliable regulatory and climate-related disclosures across

the business. It assesses data materiality, manages climate

risk reporting (TCFD and in future TNFD, and UK SDS), validates

sustainability metrics and engages with external stakeholders.

Strategy

Our planning horizons

We plan for short, medium and long-term horizons to deliver

our purpose and vision in a sustainable way.

Our integrated approach to business planning considers:

The material issues for stakeholders and how they affect

the way value is created.

Our assessment of risks and opportunities.

Our sustainability commitments, including transition to

net zero.

Short-term planning for the next financial year sets

annual performance targets for financial and operational

performance, while considering how to deliver our medium-

term goals.

Medium-term planning covers the next five years and helps

us work toward our long-term delivery. It is focused on

maintaining our excellent operational performance, while

enhancing our capability and resources, ensuring we fulfil

our purpose.

Long-term planning up to 2040 is for assessing and

managing risk and opportunities such as climate change,

population movements and changes in environmental

regulations, while providing an affordable and stable

electricity supply and a modern, responsive service.

When conducting scenario impacts relating directly to

climate change, we have used historic temperatures

provided by the Jersey Met Office as well as flood risk

reports prepared for Government, where the basis has

been the Intergovernmental Panel on Climate Change

RCP8.5 scenario.

Jersey Electricity

Annual Report and Accounts 2025

Jersey Electricity

Financial statements

Governance

Strategy

Our risk and opportunity assessment

This table lists some of the primary climate-related risks and opportunities we have identified

Risk/opportunity type

Risk description

Strategic response

Physical risks –

extreme weather

(short, medium

and long-term)

Acute weather events and chronic changes

to climate could impact operations and

insurance costs, for example:

Increased intensity of rainfall and resultant

flash flooding could significantly damage

assets and equipment.

Strong winds could damage power lines

or delay construction projects.

Lack of water for cooling nuclear plants

may disrupt equipment function.

Changes in regional weather patterns

could threaten to impact renewables.

Undertake flood surveys to identify assets

at risk in conjunction with the Government

of Jersey.

Replace overhead cables with

underground cables.

Monitor weather patterns and receipt of timely

warnings from Jersey Met and Government.

Transitional

(transition to a low

carbon economy) risks

(short, medium

and long-term)

These risks may increase operating costs:

Changing policies, regulations

and legislation.

Working with the Government of Jersey in

their decarbonisation strategy.

Monitor the evolution around sustainability

disclosures to ensure full compliance with

the standards.

Broaden our recruitment horizons and

leverage off our work with diversity, equity

and inclusion to be an employer of choice.

Actively engaging with schools and colleges

to encourage careers in the green economy.

Recruiting people with the critical skills required

to deliver our goals (e.g. engineers to carry

out reinforcement works or fuel switches).

Unknown changes

in demand

(medium to long-term)

Fluctuations in unit sales due to higher

demand caused by subsidies to switch

to low carbon heating, adoption of EVs,

requirement for energy efficient homes,

which may result in larger than anticipated

network reinforcement.

Milder winters and energy-efficient

technologies could result in loss of unit sales

and therefore under-recovery against

assets installed to fortify the network.

Modelling to enhance our understanding

of the impact of rising temperatures has

demonstrated that these are already having

an impact on unit sales.

Our medium-term planning assumes that

on a weather corrected basis, unit sales

will remain stable with growth being offset

by efficiency.

Next generation smart meters will provide

more data to allow for appropriate network

management strategies.

Opportunities

(short to medium-term)

Moving to a low-carbon economy, driven

by heating switches, more efficient homes

and the adoption of EVs, may lead to

higher demand of unit sales which would

potentially benefit stakeholders.

Increased heatwaves during summer could

drive growth in domestic cooling solutions,

which could lead to a change in the

demand profile.

Transport – provide a network of reliable

public charging stations for EVs.

Heating efficiencies – support low-carbon

heating systems with financing options to

meet customer needs.

Air-to-air heat pump systems can work in

reverse as air-conditioning in summer.

Low carbon lifestyles – help our customers

reduce emissions and become more energy

efficient – use of My JE app.

Renewables – further establishment of

solar PV.

Group risk management

(continued)

Jersey already has a highly resilient, low-carbon grid,

with spare capacity at all voltages. However, the growth

in electricity usage to meet the Island’s net zero target is

forecasted to increase peak demand by 25%.

Our strategy is to ensure our business is resilient to climate

change and Jersey has the infrastructure to support and

accelerate the transition to net zero. Our climate change

strategic actions focus on saving our customers energy

through The Big Upgrade, long-term, green and clean

energy, home and business solutions, and a wider EV

charging network.

Planning assumptions and scenario analysis

Our planning assumes JE will reach net zero by 2040 and

Jersey by 2050, which is aligned with the Government’s

Carbon Neutral Roadmap. These targets guide our

business planning across investment, workforce and supply

chain needs.

Impacts of a warming climate on unit sales

and tariffs

As we expand our awareness of climate change, we

have looked at the impact of a warming island on our

electricity sales.

Our tariff planning assumes a ‘user-pays’ model, setting tariffs

to achieve the stated long-term average return on our energy

asset base of between 6 to 7%. Increasing unit sales can

help mitigate tariff rises, while falling unit sales could result

in an increased cost per unit for our customers. Additionally,

sales volatility can have a negative impact on import costs

where hedging positions become less predictable.

Over the last five years, temperatures in Jersey have

averaged 0.7°C above the most recent long-term average

(1991 to 2020). This is estimated to be between 1.5°C and

1.9°C above pre-industrial temperatures and provides a

reminder that local temperature rises may significantly

exceed the global average temperature targets stated

in the Paris 2015 agreements. By analysing historical unit

sales and temperature data – adjusted for load growth

and efficiency – we’ve estimated how temperature

deviations from the long-term average impact sales and

the tariff increases needed to offset lost revenue.

We estimate that one degree of warming above the current

long-term average results in a reduction in unit sales of around

20 million units over a year, translating as circa £4m in lost

revenue. This assumption appears to fit our observations

where average monthly temperatures during our financial

year ending 30 September 2022 met one degree above

the long-term average, while 2025 was +0.9°C above the

long-term average.

Jersey Electricity

Annual Report and Accounts 2025

Jersey Electricity

Financial statements

Governance

Strategy

Risk management

Understanding and managing our climate‑related risks

The Board retains overall accountability and responsibility for

the Group’s risk management and internal control systems.

Climate-related risks are incorporated within our risk

management framework and are identified, assessed and

managed in the same way as other risks. Furthermore, we

integrate climate-related risks and opportunities within our

business planning process so we can align our strategic

priorities and the potential impacts of net zero with various

climate change scenarios.

When considering new or replacement assets, we look at

climate and weather-related risks, including previous extreme

weather events and research from the World Weather

Attribution Group.

As a part of our risk and strategy review, we have explored

the impact of potential flooding on our assets that climate

modelling predicts. These include the increasingly frequent

and intense overtopping of coastal defences during storm

events, general long-term sea level rise, and changes to

precipitation rates and patterns arising from changes in

the energy balance of the earth’s atmosphere, known as

radiative forcing.

Group risk management

(continued)

This table lays out the risks and opportunities we have considered in relation to climate change, including physical risk to our

assets. In terms of operational resilience, we have identified the primary risks relating to Energy assets as follows:

Location

Assets

Primary risk

Mitigation

La Collette

Power station, switchgear,

critical inventories

Coastal flooding

Seawalls, monitoring controls

located at Queen’s Road

Island-wide

Substations and EV charging

infrastructure

Depending on location,

coastal or general flooding

No substations below ground

level, use of flood risk mapping

in decision making, network

can be rerouted

Island-wide

Overhead powerlines

Windstorms

Continued replacement

of overhead lines with

underground cables as part

of the network upgrade

Archirondel

Shore-end subsea cables,

critical substation

Coastal flooding

This site has been independently

assessed and is considered

sufficiently above existing

sea-levels

Understanding how flooding will affect our assets

Data from government reports allows us to map various

flooding risks, broken down by time horizons and recurrence

intervals (also known as return periods). This data has been

incorporated into our own ArcGIS (geographic information

system) with risk areas clearly highlighted on maps against

our energy assets. We are also working to highlight

biodiversity on this system to increase our knowledge of

our impact in this area.

This has enabled us to review both the nature and likely

recurrence of flood risks including the continuity of business

and energy supply to our customers, direct risk to our assets

and potential insurance risks. This information will form a

significant part of planning when replacing and locating

future asset sites.

Jersey Electricity

Annual Report and Accounts 2025

Jersey Electricity

Financial statements

Governance

Strategy

Metrics and targets: Pathway to net zero

Understanding our greenhouse gas emissions

We report emissions in accordance with the Greenhouse Gas

(GHG) Protocol, which groups emissions into three scopes:

Scope 1:

Direct emissions from sources that we own or control,

such as fuels used for our own on-Island generation and in

our vehicles.

Scope 2:

Indirect emissions, including electricity consumed

in operational and non-operational buildings and our own

network distribution and transmission losses.

Scope 3:

Further indirect emissions that occur in the wider

value chain, arising from the procurement of goods and

services, including capital purchases by both the Group

and our customers, as well as the transportation of materials

and employee commuting and travel. Scope 3 emissions

would typically be (proportionally) the scope 1 emissions of

the counterparty.

This table shows our actions and targets over the short,

medium and long term, defined by the three scopes, to

achieve our net zero ambition. We have agreed that 2040

is our net zero target year.

Building on work conducted previously, we have started to model our decarbonisation plan, given the increase in the scope 3

categories we have captured and reported.

Category

Short-term (3 years)

Medium-term (up to 2035)

Long-term (up to 2040)

Scope 1

100% electric vehicle fleet by

2025/26 (where suitable vehicles

are available). 100% (FY24: 90%)

of our fleet is now fully electric.

Complete construction of a total

of 25 MWp of solar generation

on-Island by 2028. 5.8m units of

solar were generated in 2025

(FY24: 1.1m).

Zero marine gas oil (MGO) will

be used by 2030.

Integration of offshore energy

production to the grid. Continue

solar penetration where possible.

On-Island solutions including

hydrotreated vegetable oil and

short-term storage solutions.

Achieve a minimum of 5%

solar generation.

Scope 2

Implement a ‘no regrets’ tactical

reduction in our own energy usage.

Asset standards include up-to-

date industry best practice in

driving efficiency of losses in

network assets.

Plan for all upgrading, building

and demolition to apply circularity

principles in tendering, procurement

and waste management.

Scope 3

Continue to work with our supply

chain on the data they can

provide, particularly as we

develop new procurement

systems and processes.

Only work with suppliers who have

committed to a net zero transition

with tender submissions, including

an environmental statement.

Plan for 100% recycling of

end-of-life products.

Climate‑related metrics

FY25

FY24

FY23

FY22

JE grid (blended gCO

e/ kWh)

24.7

24.9

25.3

22.2

Electricity from low-carbon sources

94.6%

94.7%

94.9%

95.3%

JE on-Island solar-generated (kWh)

5,768,024

1,070,078

903,699

855,898

GHG metrics

FY25

FY24

KG/CO

Scope 1

MGO for JE Generation

750,526

1,547,535

Company Use – Petrol

86,008

110,673

Company Use – Diesel

93,685

165,542

Company Use – HVO

109

Sulphur hexafluoride (SF

)

4,700

16,450

R410A Refrigerant Gases

5,772

–

Total Scope 1

940,778

1,840,309

Scope 2

Importation Transmission Losses Nuclear

15,544

64,211

Importation Transmission losses Hydro

12,938

53,874

On-Island Distribution Losses

565,220

555,150

Internal electricity use

21,455

–

Total Scope 2

615,157

673,235

Scope 3

Purchased Goods and Services

11,374,258

10,213,654

Capital Goods

11,714,752

7,104,642

Importation EDF – Nuclear

1,548,705

1,556,118

Importation EDF – Hydro

1,301,062

1,314,000

Importation EfW

10,982,362

10,610,506

Upstream transportation and Distribution

677,544

659,050

Waste generated in operations

521,936

563,956

Business Travel

76,119

109,526

Employee Commuting

106,427

–

Total Scope 3

38,303,165

32,131,452

Total Emissions (kg)

39,859,099

34,644,997

Total units sold

615,750,344

609,020,992

Energy Generation CO

15,231,358

–

Group risk management

(continued)

Biodiversity

We understand the importance of nature and take our role in managing this on-Island seriously – an excellent example is our

solar projects which improve the biodiversity net gain principles. We have started to collate the internal information and plan

to disclose against the Task force for Nature-related Financial Disclosures in our next annual report.

Jersey Electricity

Annual Report and Accounts 2025

Jersey Electricity

Financial statements

Governance

Strategy

Statement on increase of scope 3 emissions

We want to improve our reporting year on year by collecting

more complete data.

This year we undertook a scope 3 materiality assessment

that highlighted which of the 15 categories were relevant

to us. We have started to collect data for seven of these

categories, one of which we have previously reported as

our importation figures, from EDF and Energy from Waste.

As part of this review, we completed the boundary-setting

exercise and have a documented methodology for our

work to date.

The basis to our methodology includes:

Category 1 – Purchased goods and services

have been

calculated using the spend methodology using the

appropriate DEFRA factor according to the products

and services procured from our vendors.

The same methodology has been applied to

Category 2

– Capital goods

, which includes investment in solar

generation, removing solar from where it had previously

been disclosed under scope 1.

Category 3 – Fuel and energy-related activity

(not already

captured under scopes 1 and 2) is calculated based on known

emissions factors of our imported energy from EDF and an

estimated emissions factor for energy from the Energy from

Waste facility.

Category 4 – Upstream transport and distribution

calculated based on spend for logistics of transporting

goods to our warehouse, and the appropriate DEFRA factor.

Category 5 – Waste generated in operations

is calculated

based on spend and the appropriate DEFRA factor.

Category 6 – Business travel data

is obtained from our

third-party travel partner.

Category 7 – Employee commuting data

is calculated based

on a staff survey, applying appropriate factors for mode of

transport and distance travelled and extrapolating this to

the entire workforce.

We have included comparative figures for FY24 based on the

methodology above. In future we will work to refine the quality

of our data, which will provide an increasingly accurate

picture, and increase the scope of our reporting further.

The hard work undertaken this year means we should be in

a position to complete accurate modelling and start on our

SBTi journey.

Group risk management

(continued)

Jersey Electricity

Annual Report and Accounts 2025

Jersey Electricity

Financial statements

Governance

Strategy

Jersey Electricity

Annual Report and Accounts 2025

Jersey Electricity

Financial statements

Governance

Strategy

Board of Directors

Tony Taylor

Senior Independent Director

Tenure on Board

Appointed 21 September 2017

Committee memberships

Experience

Senior management roles in leading global

advertising agencies

Relevant skills

Strategic planning and growth

Customer experience

Stakeholder engagement

Marketing and communications

External appointments

Non-Executive Director of Jersey Milk Marketing Board

Chair of Channel Radio Ltd

Kayte O’Neill

Non-Executive Director

Tenure on Board

Appointed 3 March 2022

Committee memberships

Experience

Executive leadership roles in strategy, regulation, markets

and large-scale transformation

Extensive experience working with policymakers and

regulators to develop and implement frameworks and

business models to support energy transition

Designing and operating electric systems and markets in

the UK

Relevant skills

Leadership and management

Strategic planning

Stakeholder engagement

External appointments

Executive Director on the Board of National Energy

System Operator (NESO)

Phil Austin MBE

Independent Chair

Tenure on Board

Appointed 12 May 2016 and

Chair from 28 February 2019

Committee memberships

Experience

Financial services background and board level

experience across a wide range of listed and

private companies

Relevant skills

Extensive experience in leadership and management

Deep understanding of governance standards

and requirements

Good communication skills

Governance, including compliance with Corporate

Governance Code for listed companies, risk

management and oversight of ESG and sustainability

External appointments

Chair of Octopus Renewables Infrastructure Trust Plc

Chris Ambler

Chief Executive

Tenure on Board

Appointed as Chief Executive 1 October 2008

Committee memberships

Experience

Chartered Engineer in various leadership and general

management roles in blue chip multinationals

Strategy consultancy experience with MBA (INSEAD)

Broad experience across global utility, chemicals and

industrial sectors

Relevant skills

Leadership and management

Strategy development

M&A and corporate finance

External appointments

Foresight Solar Fund Ltd

(resigned 17 June 2025)

Member of the Nominations Committee

Member of the Remuneration Committee

Member of the Audit & Risk Committee

Chair of the Committee

Jersey Electricity

Annual Report and Accounts 2025

Jersey Electricity

Financial statements

Governance

Strategy

Iman Hill

Non-Executive Director

Tenure on Board

Appointed 1 October 2024

Committee memberships

Experience

C-suite executive roles, P&L and Functional, in Oil and Gas

Exploration and Production Companies

CEO of Oil Industry Association, including:

Extensive experience working with policymakers and

regulators to develop and implement frameworks and

business models to support energy transition.

Input to European Commission on the Fit for 55 package

and Green Deal

Relevant skills

Leadership and strategy development & execution

P&L and liquidity management

Business plan development and delivery,

including capital allocation

Risk management and safety oversight

Business turnarounds and stakeholder engagement

Managing joint ventures and regulatory compliance

M&A and creating growth

External appointments

Non-Executive Director of United Oil and Gas

Advisory Board Member of The International Institute

of Leadership and Safety Culture (IILSC)

Amanda Iceton

Non-Executive Director

Tenure on Board

Appointed 1 June 2020

Committee memberships

Experience

Executive leadership experience as Chair and Managing

Director of global management consultancy Accenture

UK/Ireland Plc

Extensive experience of chairing audit and risk

committees across UK Government and listed companies

Relevant skills

Digital and cyber skills developed through work with

CPNI and NCSC

Familiarity with UK and US GAAP accounting

Strategy leadership

Preparation/approval of UK Government and company

accounts internationally, including USA and South Africa

External appointments

Non-Executive Director of Paragon ID

Roger Blundell

Non-Executive Director

Tenure on Board

Appointed 1 October 2024

Committee memberships

Experience

Chartered accountant with significant experience as

an executive and non-executive on public and private

company boards.

Relevant skills

Business and financial leadership

Strategy development and delivery

Capital transactions and the raising of

finance in the public and private markets

Governance, including compliance with

the Corporate Governance code for listed

companies and risk management

External appointments

Non-Executive Director and Chair of the Audit Committee

at Supermarket Income Reit Plc

Non-Executive Director and Chair of the Investment

Committee at the Government Property Agency

Member of the Council and Chair of the Finance

Committee at University College London

Trustee and Deputy Chair at the National Portrait Gallery

and Chair of the Audit Committee

Member of the Nominations Committee

Member of the Remuneration Committee

Member of the Audit & Risk Committee

Chair of the Committee

Board of directors

(continued)

Jersey Electricity

Annual Report and Accounts 2025

Jersey Electricity

Financial statements

Governance

Strategy

Directors’ report

for the year ended 30 September 2025

Corporate Governance

The Directors are committed to maintaining a high standard of

Corporate Governance in accordance with The UK Corporate

Governance Code 2018 (“the Code”), as incorporated within

The Listing Rules, issued by the Financial Conduct Authority.

The Listing Rules require the Company to set out how it has

applied the main principles of the Code and to explain any

instances of non-compliance. In accordance with Listing

Rule (“LR”) 9.8.4 R, the agreement related to ‘Independent

business’ required by LR 9.2.2A (2) (a) R has been entered into

with the Government of Jersey, with effect from 17 November

2014. The Company has complied with the independence

provisions included in the agreement during this financial year

and believes the majority shareholder is also compliant.

The other applicable information required by LR 9.8.4 R (5)/(6)

is disclosed in external appointments.

The Directors have reviewed, and applied, the latest UK

Corporate Governance Code applicable to accounting

periods beginning on or after 1 January 2019, together with the

supporting Guidance on Board Effectiveness within these

financial statements. The Code is available at:

www.frc.org.uk

Statement of Compliance

At the time of signing off the 2024/25 Annual Report the

Board considers that it has complied with the Code, except for

Provision 38 (executive pensions aligned with the workforce)

and this is explained in the Remuneration Report.

The Board

The Board provides effective leadership and currently

comprises six Non-Executive and one Executive Director.

They are collectively responsible for the long-term success

of the Company and bring together a balance of skills,

experience, independence, and knowledge.

The Chairman and the Chief Executive roles are divided with

the former being appointed by the Directors from amongst

their number. Tony Taylor is Senior Independent Director.

Independence

The Non-Executive Directors serving at the Balance

Sheet date were Phil Austin, Tony Taylor, Amanda Iceton,

Kayte O'Neill, Roger Blundell and Iman Hill and they were all

considered independent. On appointment to the Board the

required time commitment is established and any significant

changes to time commitments are notified to the Board.

An induction process is in place for all newly appointed

Directors. The Board is responsible to the Company’s

shareholders for the proper management of the Company.

It meets regularly to set and monitor strategy, review trading

performance, perform a robust assessment of the principal

risks that could threaten the business model, future

performance, solvency, or liquidity (see Principal Risks section

on pages 70 to 80), examine business plans and capital and

revenue budgets, formulate policy on key issues and review

the reporting to shareholders.

Board papers are circulated, with reasonable notice, prior to

each meeting to facilitate informed discussion of the matters

at hand. Members of the Board hold meetings with major

shareholders to develop an understanding of the views they

have about Jersey Electricity.

Table A below sets out the number of meetings (including

committee meetings) held during the year under review and

the number of meetings attended by each Director.

Table A

No. of meetings

Board

Audit and Risk

Remuneration

Nominations

P. J. Austin

5/5

3/5

4/4

2/2

C. J. Ambler

5/5

4/5

4/4

2/2

R. Blundell

5/5

4/4

1/1

A. A. Bryce

1/1

0/0

1/1

W. Dorman

3/3

0/0

1/1

L. G. Fulton

4/4

3/3

0/0

I. Hill

4/5

3/4

0/0

1/1

A. Iceton

5/5

4/4

0/0

K. O’Neill

5/5

4/5

4/4

0/0

T. Taylor

5/5

1/1

3/3

2/2

Attended as observer

Attended one additional meeting as observer

Performance evaluation

The effectiveness of the Board is vital to the success of the

Company. Policy states an external review will take place

every three years and internal reviews will be undertaken in

the intervening period. During the year, the Board conducted

a self-evaluation of its performance, which included a review

of the Chair and all Board Committees as part of the process.

A questionnaire was issued to all Board Members followed

by a 1:1 meeting between the Chair and each Board Member

to discuss the responses and any areas of concern including

individual performance. In parallel the Senior Independent

Director led a process to assess the performance of the Chair.

The Chair tabled a discussion to the September Board

meeting in order to review the status of the previous external

review recommendations to ensure progress has been

made and the Board agreed three recommendations as

part of this internal review. The implementation and status

of the same will continue to be monitored by the Board.

During the year there was also a review of the Board Terms of

Reference which subject to rebranding remain fit for purpose.

The Directors present their annual report

and the audited financial statements of

Jersey Electricity Plc (“the Company”)

and Jersey Deep Freeze Limited

(together “the Group”) for the year

ended 30 September 2025.

Principal activities

The Company is the sole supplier of electricity in Jersey.

It is involved in the generation and distribution of electricity

importing power for both Islands. It also engages in

retailing, property management, building services and has

other business interests, including software development

and consulting.

Re-election of Directors

All Directors seek re-election annually at each AGM.

Directors’ and Officers’ insurance

We maintained liability insurance for our Directors and

Officers throughout the year.

Policy on payment of creditors

It is Group policy to settle the terms of payment with suppliers

when agreeing each transaction, to ensure they are made

aware of the terms of payment and to abide by those terms.

The number of creditor days in relation to trade creditors

outstanding at the year-end was 5 days (FY24: 11 days).

Substantial shareholdings

As at 17 December 2025 the Company has been notified of the

following holdings of voting rights of 5% or more in its issued

share capital.

Ordinary shares

The Government of Jersey holds all of the Ordinary shares,

representing approximately 62% of the total issued share

capital and 86.4% of the voting rights. This holding is accounted

for as a strategic investment in the Government’s balance

sheet and is not consolidated into its financial statements.

‘A’ Ordinary shares

‘A’ Ordinary shares are listed shares and entitle the holder to

1 vote for every 100 shares held whereas the Ordinary shares

carry voting rights of 1 vote for every 20 shares held. Huntress

(CI) Nominees Limited is the largest registered shareholder

of our listed shares and hold 5,045,604 ‘A’ Ordinary shares

which represent 5% of the total voting rights. It is understood

that the underlying owners of these shares are substantially

private investors, and a fund based in the Channel Islands.

Section 172 (1) statement

Section 172 of the Companies Act 2006 is not applicable to

a Jersey incorporated company, however the Board considers

that it has acted in good faith and in a manner it believes

promotes the continued success of the Company, for the

benefit of all its stakeholders. In addition to its shareholders,

the Board engages with Government, local parishes,

suppliers, customers and employees

Company Secretary

On 24 July 2025, Andrew Welsby resigned as Company

Secretary and Non Owen was appointed as

Company Secretary.

Auditor

A resolution to re-appoint PricewaterhouseCoopers CI LLP as

auditor will be proposed at the next Annual General Meeting.

BY ORDER OF THE BOARD

N. Owen

Secretary

15 December 2025

2025

2024

Preference dividends

5% Cumulative Participating Preference Shares at 6.5%

5,200

3.5% Cumulative Non-Participating Preference Shares at 3.5%

3,773

8,973

Ordinary dividends

Ordinary and ‘A’ Ordinary Shares

Interim paid at 8.82p net of tax for the year ended 30 September 2025 (2024:8.40p net of tax)

2,701,751

2,573,096

Final proposed at 12.60p net of tax for the year ended 30 September 2025 (2024: 12.00p net of tax)

3,859,645

3,675,852

6,561,396

6,248,948

Jersey Electricity

Annual Report and Accounts 2025

Jersey Electricity

Financial statements

Governance

Strategy

Workforce engagement

During 2020, a workforce Culture and Engagement Forum was

established with representatives from across the Company.

At least one Non-Executive Director attends each meeting of

this forum which provides an opportunity to gain first-hand

feedback from the workforce. In addition, the maintenance

of the right culture within Jersey Electricity remains a priority.

The use of staff surveys to collect data, the promotion of

people development (through our ‘Living Leader’ and other

management development programs) and a continued

focus on the safety of both our employees and customers

are key tools in the delivery of this objective.

The key procedures which the Board has established to

provide effective controls are:

Board reports

Key strategic decisions are taken at Board meetings following

due debate and with the benefit of Board papers circulated

beforehand. The risks associated with such decisions are a

primary consideration in the information presented and

discussed by the Board who are responsible for determining

the nature and extent of the risk it is willing to take to achieve

the strategic objectives. Prior to significant investment

decisions being taken, due diligence investigations include

the review of business plans by the Board.

Management structure

Responsibility for operating the systems of internal control is

delegated to management. There are also specific matters

reserved for decision by the Board. A Board Charter detailing

the matters reserved and the roles and responsibilities of

the officers of the Company is available on our website

(

www.jec.co.uk

). A summary of the key types of decision

made by the Board are as follows:

Strategy and Management including:

Approval of the Company’s long-term objectives

and commercial strategy

Approval of the annual operating and capital

expenditure budgets and any subsequent material

changes to them.

Changes in structure and capital of the Company

Financial reporting and controls including:

Approval of the Annual Report and Financial Statements.

Declaration of the interim dividend and recommendation

of the final dividend.

Internal controls/Risk Management

Reviewing the effectiveness of the internal control and

risk management systems. An external review of the risk

management process is conducted every three years.

Approval of contracts

Including material contracts, investments, capital

expenditure and bank borrowings.

Board membership and other appointments

Approval of changes to the structure, size and

composition of the Board and key committees, following

recommendations from the Nominations Committee.

Remuneration

Determining the remuneration policy for the Directors and

other senior management, following recommendations

from the Remuneration Committee.

Corporate governance matters

Undertaking a formal and rigorous annual evaluation of

its own performance, that of its committees and individual

Directors. Review of the Company’s overall corporate

governance arrangements.

Approval of key Company policies

These include policies on health and safety, share dealing

and diversity.

Internal audit/risk management

There is a permanent internal audit function involved in a

continuous structured review of the Company’s systems

and processes, both financial and non-financial. Internal

Audit manage the process of strategic and operational

risk reviews and facilitate risk review workshops with

departmental managers. The Head of Internal Audit has

direct access to the Audit and Risk Committee Chair and

attends ARC meetings, at which risk based internal audit

plans are discussed and approved.

Personnel

The Company ensures that personnel can execute their

duties in a competent and professional manner through its

commitment to staff training, regular staff appraisals and

organisational structure.

Budgetary control

Detailed phased budgets are prepared at profit centre

level. These budgets are approved by the Board, which

receives sufficiently detailed financial data to monitor the

performance of the Company with explanations of any

material variances.

Audit and Risk Committee

The Audit and Risk Committee (ARC) reviews the effectiveness

of the internal control and risk management processes

throughout the accounting period as outlined above.

In addition, it conducts “deep dive” reviews on specific

identified risks to test assumptions on the substance of

such risks and their mitigation.

More detail on the Group’s principal risks, and how they are

managed, is provided in this report (see the Principal Risks

section on pages 70 to 80).

The ARC also reviews and monitors the independence of

the external auditors and the non-audit services provided

to the Group.

Stakeholder engagement

The Company maintains an active dialogue with its largest

shareholders and meetings with Government of Jersey

(which owns 62% of our Ordinary share capital) include both

the Non-Executive Chairman, Chief Executive and Interim

Finance Director. The primary responsibility for relationship

matters with listed shareholders lies with the Interim Finance

Director who reports to each Board meeting on investor

relations. Jersey Electricity also has several other important

stakeholders including Government, the local parishes,

suppliers, customers and employees, and regular

presentations are provided to the Board on how such

relationships are managed and can be developed.

Going concern statement

The Directors have assessed the Group’s ability to continue

as a going concern for a period of at least twelve months

from the date of approval of these financial statements. This

assessment was carried out within the Group’s established

financial forecasting, risk management and governance

framework and included detailed review, challenge and

approval by the Board and the Audit and Risk Committee.

Assessment process and governance

The Board’s review considered the Group’s current financial

position, cash flow forecasts, liquidity profile, access to

financing, and the Group’s strategic and operational plans

as set out in the approved Five-Year Company Business Plan

to 30 September 2030. The Five-Year Plan is refreshed annually

so that assumptions reflect current market and operational

conditions. The Audit and Risk Committee reviewed the key

assumptions, scenario results and proposed mitigating

actions, and reported its findings and recommendations to

the Board, which approved the going concern assessment.

Financial forecasts, assumptions and mitigations

The Five-Year Plan reflects forecast investment, the Group’s

hedging policy for electricity procurement and linked foreign

exchange exposures, committed and planned debt, and

projected operating costs and customer tariff evolution

under the Group’s Return on Assets (ROA) tariff model.

The Group maintains a strong balance sheet, prudent

liquidity management and material headroom in available

cash and committed facilities. The Group has engaged

constructively with lenders in advance of planned

additional financing to enable delivery of our strategic

initiatives. The Board retains discretion to phase

discretionary capital expenditure and implement other

management actions to preserve liquidity if required.

Consistent with the Group’s vertically integrated, user-pays

business model, a reduction in unit volumes alone is mitigated

by the ROA tariff framework and by active customer

conversion initiatives (including switching customers who

currently use gas/oil heating to all-electric solutions).

A dedicated team is pursuing these initiatives. As a result,

the Board has comfort that reasonably foreseeable,

volume-related demand reductions do not, in isolation,

create a going concern risk.

Scenario analysis and reverse stress testing

The Directors considered a range of severe but plausible

downside scenarios aligned to the Group’s principal risks,

including prolonged wholesale price volatility, sustained

adverse foreign exchange movements, significant but

plausible reductions in customer demand, supply chain

disruption and delays to strategic programmes. For each

scenario the Board assessed the impact on liquidity,

covenant headroom and the ability to recover costs

through the ROA tariff mechanism.

Given Jersey Electricity’s user-pays model, the primary focus

of reverse stress testing was on identifying circumstances

in which the Group’s normal cost recovery mechanisms

and mitigations would be constrained or unavailable —

for example where a combination of regulatory constraints

on tariffs, simultaneous failure of hedging strategies, and an

extreme, prolonged market dislocation prevented timely

pass-through of wholesale cost increases to customers.

The analysis showed that for the Group to be unable to

continue as a going concern, multiple such, highly adverse

and concurrent events would need to occur. The Board

considers the likelihood of that combination to be remote.

Conclusion

Having considered the results of the forward and reverse

scenario analysis, the Group’s financial position, liquidity

and committed funding, and the range of realistic mitigating

actions available to management, the Directors have not

identified any material uncertainties that cast significant

doubt on the Group’s ability to continue as a going concern

for at least twelve months from the date the financial

statements are approved. Accordingly, the Directors have

adopted the going concern basis in preparing these

financial statements.

Directors report

(continued)

100

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Annual Report and Accounts 2025

Jersey Electricity

Financial statements

Governance

Strategy

Nominations

Committee

The Committee engaged an independent search organisation

to support the campaign and engage with potential

candidates. A short list was considered by the Board to agree

candidates for interview. A panel comprising of Members of

the Nomination Committee interviewed candidates during

summer 2025.

This table shows the skills and diversity among Board

members and reflects our position at the period end on

30 September 2025.

Board mix of specialist skills, tenure and gender

Specialist Skills

Board Governance

Operational/Engineering

Digital and Cyber

Finance and Accounting

Strategy, M&A

Customers and Marketing

Energy/Utilities

Sustainability and Climate Change

Human Resources

Tenure

0-3 years

3-6 years

6-9 years

>9 years

Gender

Male

Female

In July we appointed Non Owen as Company Secretary.

Andrew Welsby, our People and Culture Director, had been

covering the role on an interim basis and we thank Andrew

for his diligence during this period.

Non joined JE from High Speed 2 and has a wealth of

company secretary experience.

In line with listing rules on Board diversity, we make the

following statements for the period end:

We comply on gender diversity with at least 40% of our

Board being women.

We comply on ethnic diversity, as one member of our

Board is from a minority ethnic background.

In addition to our consideration of Board structure,

composition, skills and succession, as a committee we

maintain oversight more broadly of the succession pipeline

and plans at the Company’s senior management levels.

These comprise the six-strong Executive Leadership Team

(ELT) and around twenty members of the Senior Leadership

Team (SLT).

Throughout the year, we have monitored the progress of our

SLT development programme. We introduced a new iteration

for nine SLT members seeking greater responsibility, forming

the Business Leadership Team (BLT). This team holds both

functional responsibilities at the SLT level and cross-functional

duties from a BLT perspective. The BLT selection process

matched potential with ambition for further development

and responsibility. The development of the BLT helps us build

internal ‘bench’ strength for ELT succession planning.

At our December meeting each year, we review the overall

progress of our ELT, BLT, and SLT development programmes,

with an emphasis on succession planning and identifying

potential. The Committee continues to support initiatives

designed to create developmental opportunities throughout

the organisation.

Our approach to senior management succession remains

a mix of external appointments and internal promotions.

Board evaluation

Following the external board evaluation conducted by

Boardroom Dialogue during 2024, we facilitated an internal

review of the performance of the Board, its committees and

the Chair during 2025.

Each Director completed a questionnaire covering a range

of Board-related topics, before a 1:1 meeting with the Chair

and a Board discussion to consider the overall conclusions

and recommendations. The Senior Independent Director also

led a similar process to assess the performance of the Chair.

The results were very positive. The Directors feel the Board

is performing well, it is effectively carrying out its role and

there are no significant concerns.

In total, there were three main recommendations, and the

Chair will work with the Company Secretary in the months

ahead to implement them.

Phil Austin MBE

Chair

Our committee is dedicated to

shaping strong leadership for

the future, guiding board composition,

strengthening succession pathways,

and championing meaningful progress

in diversity, equity, and inclusion.

Committee purpose

The Committee’s purpose is to provide recommendations to

the Board regarding Board composition, appointments and

succession planning for senior leadership roles, and to assist

the Board with diversity, equity and inclusion initiatives.

Committee duties

The Terms of Reference for the Committee and the Terms

of the Appointment of Non-Executive Directors (NEDs) are

available on our website:

www.jec.co.uk

To summarise, the Committee’s key duties are to:

Regularly review the structure, size, balance and overall

composition of the Board, and to recommend any changes,

with due regard to the skills needed for the future.

Consider the pipeline of succession at Board and Executive

Leadership Team levels, and to lead the process for any

appointments to the Board.

Support the annual Board evaluation process and make

recommendations, including the annual reappointment

of NEDs.

Support the Board to lead Company culture in pursuit of

greater diversity, equity and inclusion.

Membership and meetings

I am pleased to report on the work of the Nominations

Committee for the financial year ended 30 September 2025.

The Committee comprises a majority of independent

Non-Executive Directors, the Chair of the Board and the CEO.

After the resignation of Alan Bryce on 31 December 2024,

I assumed the chairmanship of the Committee and its

membership was restructured to reflect the changes in

the Board throughout 2024/25.

The Committee met twice (17 December 2024 and 23 July

2025), with attendance as recorded below.

Attendance

Meetings

Attendance

P.J. Austin (Chair)

100%

C.J.Ambler

100%

I.Hill

(appointed to the Committee

01 January 2025)

100%

R. Blundell

(appointed to the Committee

01 January 2025, resigned from

the Committee 24 July 2025)

100%

K. O’Neill

(appointed to the Committee

24 July 2025)

N/A

T. Taylor

100%

W. Dorman (resigned June 25)

100%

A.Bryce (resigned Dec 24)

100%

Board structure and composition

As previously reported, Alan Bryce and Wendy Dorman left

the Board in December 2024 and June 2025 respectively,

and their replacements, Iman Hill and Roger Blundell, have

settled in well.

Lynne Fulton, CFO, has stepped down from the Board and

will leave the Company at the end of February 2026, after

nearly three years’ service. Preparations are underway to

begin the recruitment process for her successor.

During the period, the Committee maintained oversight of

the Board structure, composition and effectiveness.

As part of its succession process, I am pleased to announce

the appointment of Paul Savery as a Non-Executive Director

with effect from 01 December 2025.

102

103

Jersey Electricity

Annual Report and Accounts 2025

Jersey Electricity

Financial statements

Governance

Strategy

Diversity, equity and inclusion

Our commitment to diversity, equity and inclusion (DEI)

continues to be a cornerstone of our culture and strategic

direction. We recognise the importance of fostering an

inclusive environment that reflects the communities we

serve and empowers every colleague to thrive.

This year, we refreshed our DEI Strategy for 2024–2029,

setting out our ambition to progress from Bronze to Silver in

the Inclusive Employers Standard by 2027. Our strategy is

built around six pillars: inclusive leadership, diverse talent

pipelines, equitable processes, employee voice, community

impact, and data-driven accountability. It is reviewed

regularly at Board and Executive Leadership Team (ELT)

level, with clear ownership and measurable outcomes.

Gender balance

Male

Female

Company

74%

26%

First Line Reports

75%

25%

Senior Leadership Team

75%

25%

Executive Leadership Team

83%

17%

Board

50%

Overall, the Company’s gender balance has remained

relatively stable over the last 12 months, reflecting a stable

workforce with low turnover in leadership roles.

Gender pay gap

Our mean gender pay gap has decreased significantly

over the past four years, from 21.4% in 2022 to 8.3% in 2025.

The median gap has also improved, falling from 19.2% to 9.7%

over the same period. This sustained progress reflects our

ongoing focus on inclusive hiring, targeted development

and transparent pay practices, supporting our ambition to

close the gap further in the years ahead.

DEI impact assessment

Primary Engineer is a UK STEM programme that engages

primary school children with engineering through practical

projects and problem solving. Jersey Electricity has supported

this initiative for seven years, promoting early STEM interest

and gender diversity in engineering. Over 1,000 local children

participated this year, with over 70% of entrants being girls,

reflecting progress in challenging stereotypes and fostering

future engineers. This partnership highlights our ongoing

commitment to diversity and talent development.

Our bursary scheme offers financial support, paid work

experience, and professional mentoring to students from a

variety of backgrounds who are interested in careers in the

energy sector. Since 2021, six female STEM bursary students

have participated in the programme and now make up the

majority of the current cohort. These students have worked

on engineering, digital, and sustainability projects within

the organisation, contributing different perspectives and

supporting various initiatives. The programme aims to

promote gender diversity and develop a diverse talent

pipeline for the future.

In March, we hosted a fireside talk to mark International

Women’s Day, bringing together colleagues to reflect on

progress, share lived experiences, and explore how we can

continue to build an inclusive workplace. The event was

well attended and received positive feedback, reinforcing

the value of open dialogue and visible leadership.

We were delighted to sponsor Channel Islands Pride for the

second time, following our involvement the year before last,

as the event alternates locations across the Channel Islands.

This continued support reflects our ongoing commitment

to LGBTQ+ inclusion and community engagement. Our

sponsorship included vibrant internal awareness campaigns

and an engaging webinar on the significance and history of

Pride, which was attended by around 10% of our workforce.

Supporting Channel Islands Pride underscores our

dedication to fostering a culture of belonging and respect

both within our organisation and the wider community.

Internally, we launched a DEI Resource Library to support

learning and development. The library includes curated

materials on inclusive leadership, unconscious bias, and

allyship, and is used by teams across the business to inform

discussions and drive change. We also introduced a

supplementary DEI impact assessment for business cases,

ensuring that inclusion is embedded in decision-making.

We remain active in sector-wide benchmarking and best

practice sharing with Inclusive Employers, participating in

the Inclusion Measurement Framework.

Looking ahead, we will continue to build on our progress,

guided by data, employee voice, and our ambition to be a

truly inclusive employer. DEI is not a standalone initiative –

it is integral to our purpose, our performance, and our future.

Board apprenticeship

We have continued to run our Board apprenticeship

programme this year, which is designed to encourage

greater diversity on the Boards of companies and other

public bodies, especially those based in Jersey. Elenor

Bouchet, who joined us in September 2024 as our fourth

Board Apprentice, provides valuable contribution and

insights to our discussions. Elenor runs her own marketing

consultancy business in Jersey and supports clients with

their marketing and business strategies.

P.J. Austin MBE

Chair

15 December 2025

Directors report

(continued)

104

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Annual Report and Accounts 2025

Jersey Electricity

Financial statements

Governance

Strategy

Committee report

Membership and meetings

All members of the Committee are independent Non-

Executive Directors.

During the year, there were several changes to Committee

membership. Iman Hill and I joined the Committee on

1 January 2025, with Iman succeeding Alan Bryce after his

resignation from the Board in December 2024. In June 2025,

Wendy Dorman stepped down after completing her highly

valued tenure as Chair of the Committee. The Board extends

its sincere thanks to Wendy for her strong leadership, sound

judgement, and significant contribution to strengthening

the Committee’s effectiveness during her time in the role.

Following her departure, I assumed the position of Chair.

Kayte O’Neill stepped down in July 2025 to take up the role

of Chair of the Remuneration Committee, with Tony Taylor

appointed as her successor.

On behalf of the Board, I would like to express my sincere

appreciation to Alan and Kayte for their outstanding

contributions to the Committee throughout their tenures.

The current members of the Committee are Amanda Iceton,

Tony Taylor, Iman Hill, and myself. The Board is satisfied that

the current membership brings the appropriate range of

skills and experience, including recent and relevant

financial experience as well as industry knowledge, safety,

digital and cyber expertise.

You can read the members’ biographies on pages 92 to 95.

Five scheduled meetings were held during the year. The

meetings provided a forum for discussions with company

management and the external and internal auditors.

Meetings are attended by invitation and include the Chair

of the Board, Chief Executive, Chief Financial Officer, Interim

Finance Director, Director of Technology, as well as members

of both the external and internal audit teams. The company

secretarial function offers support to the Committee. After

each meeting, an update is provided to the Board that

outlines areas discussed, topics of note, and recommendations

arising from meetings. All recommendations from the

Committee during the year were accepted by the Board.

The role of the Committee

The key responsibilities of the Committee are to:

Oversee the independence, effectiveness and

remuneration of the external auditor and the quality of the

audit together with overseeing policy on the engagement

of the external auditor to supply non-audit services.

Monitor the integrity of the financial statements and report

to the Board on key judgements and significant issues.

Consider, on behalf of the Board, whether the annual report

and accounts, taken as a whole, are fair, balanced and

understandable, and provide the information necessary

for shareholders to assess the Company’s position and

performance, business model and strategy.

Review and challenge the effectiveness of the Company’s

internal control framework and risk management processes.

Monitor and review the effectiveness of the internal

audit function.

Monitor principal and emerging risks and the robustness

of the risk management framework.

Review and assess management’s oversight of cyber

security risk to systems, assets, data capabilities and

data privacy.

Review and assess management’s oversight of climate-

related risks and opportunities including the impact of

climate change on strategies, reputation, operations, asset

values and capital.

Key activities during the year

The Audit and Risk Committee (ARC) fulfilled its responsibilities

under the Corporate Governance Code, providing oversight

of financial reporting, internal controls, risk management, and

non-financial disclosures. Specific areas of focus during the

year included:

Risk Management Framework:

Oversaw the refresh of

the Group’s Risk Management Framework, including the

introduction of an evolved five-lines-of-responsibility model.

Internal Control Environment:

Reviewed the effectiveness

of the Group’s internal controls and observed progress

across the Code of Conduct and Whistleblowing Policy,

governance and accountability.

Financial Reporting and External Audit:

Oversaw the

external audit, including independence, scope, key findings,

and the rotation of the audit engagement partner.

Internal Audit and Assurance:

Approved the annual

Internal Audit Plan and monitored outcomes from internal

assurance work covering financial, operational, technology,

customer, and governance processes.

Sustainability and Non-Financial Reporting:

Reviewed

TCFD disclosures and preparatory work for TNFD reporting,

monitoring progress on climate-related and biodiversity-

related impacts.

Data Protection and Cybersecurity:

Received updates on

cyber risk management, data-protection compliance, and

ongoing improvements to the data-governance framework.

The Committee continued to provide review and challenge

on principal risks, mitigation strategies, and management

action plans. Details of principal risks and associated

mitigation measures are provided on pages 70 to 80.

Whistleblowing policy

The Committee is tasked with reviewing the Company’s

Whistleblowing and Speak Up policy, as well as

management’s responses to concerns raised. During the

year, we conducted a review of the policy. Two concerns

were reported within the period, and in each instance,

assurance was provided that appropriate investigative

and remedial procedures had been duly followed.

External auditors

The Committee holds primary oversight responsibility

for the Group’s relationship with its external auditors,

PricewaterhouseCoopers CI LLP (“PwC”). This includes

conducting annual evaluations of PwC’s performance,

effectiveness, quality and objectivity. For 2025, we concluded

that the audit was both effective and of high quality.

Throughout the year, we also met independently with the

external auditors, without management present, to discuss

the effectiveness of the audit process and address any

matters the auditors wished to raise.

In accordance with the Company’s Non-Audit Services

Policy, all non-audit services provided to the Group require

prior approval from the Audit Committee chair, in addition

to PwC’s internal conflict checks. As noted in Note 5 to the

Financial Statements, no non-audit services were provided

to the Group by PwC during the year.

In accordance with professional standards, the audit

engagement partner is required to rotate after a maximum

term of five years. This year, James De Veulle succeeded

Lisa McClure as our audit partner. We will continue to

monitor the rotation of other team members, who are

subject to a seven-year limit, and review as appropriate.

The Committee will maintain ongoing oversight of all

matters pertaining to the external auditor relationship and

start the next tender process at a suitable juncture, taking

into account the elapsed time since the last tender.

We continually evaluate the effectiveness of the external

audit, primarily through ongoing discussions with the

external auditor and the finance team regarding the

maintenance of audit quality, as well as through reports

submitted by the audit team in connection with the year-

end audit. Additionally, an annual meeting is held each

January to review key insights from the recently concluded

audit process for the previous year. During the audit

process, PwC formally confirmed their independence.

The Committee has approved the external auditor’s

remuneration and terms, and is satisfied with their

performance, objectivity, challenge and independence.

UK Corporate Governance Code

As a company with a premium listing, we are required to

report under the Corporate Governance Code 2018, which

you can view on the website of the Financial Reporting

Council –

www.frc.org.uk

. We continually strive to meet the

expectations of public company reporting and enhance

the quality of stakeholder communications.

The Committee has reviewed the changes incorporated into

the revised Corporate Governance Code issued in 2024.

The revised code contains additional provisions regarding

disclosure in the annual report of the effectiveness of

material controls at the balance sheet date. Although this

provision is not effective for our Company until the year ending

30 September 2027, we have begun initial preparations

in advance.

Audit and Risk

Committee

Roger Blundell

Chair

Our focus this year was clear:

uphold the highest standards

of governance, review and refresh the

Company principal risks, and provide

the Board with clear, independent

insight to guide sound decision-making.

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Jersey Electricity

Financial statements

Governance

Strategy

Sustainability‑related disclosures

The FCA listing rules require premium listed companies to

make disclosures under the TCFD framework for accounting

periods beginning on or after 1 January 2021. This is the fourth

year we have been required to make such disclosures. The

Audit and Risk Committee has monitored TCFD reporting

status throughout the year. Efforts to comply with scenario

analysis, review organisational resilience have continued

as well as progressing baselining and understanding of

scope 3 emissions.

We also continue our readiness for disclosures under the TNFD.

Further information is available on pages 81 to 91.

Fair, balanced and understandable

As part of the review of the annual and interim financial

statements, the Committee reviews any significant issues

and in particular any critical accounting judgements and

estimates the Company has identified and discussed with

the external auditor, which are disclosed in Note 2 to the

Financial Statements (Critical Accounting Judgements and

key sources of estimation uncertainty). Comprehensive

position papers on each key area are produced by the

Finance team at both the half and full year. We review any

year-on-year changes in methodology for reasonableness

and assess the impact of any new accounting standards.

We are also responsible for monitoring the controls in force

(including financial, operational and compliance controls

and risk management procedures) to ensure the integrity

of the financial information reported to stakeholders. The

Committee considers reports from the internal and external

auditors and from management and provides comment on

salient issues to the Board.

On behalf of the Board, the Committee considered whether

the 2025 annual report and financial statements, taken as a

whole, are fair, balanced and understandable, and whether

the disclosures are appropriate. We reviewed the Group’s

procedures around the preparation, review and challenge of

the report and consistency of the narrative sections within the

financial statements and the use of alternative performance

measures and associated disclosures.

We also considered any potential inconsistencies raised by

the external auditor.

Following its review, the Committee is satisfied that the

annual report is fair, balanced and understandable, and

provides the information necessary for shareholders and

other stakeholders to assess the Company’s position and

performance, business model and strategy. We have advised

the Board accordingly.

Internal control and risk management

The Board is responsible for establishing and maintaining the

Company’s system of internal control and managing risk.

Internal control systems are designed to meet the needs

of the business and the risks to which it is exposed, and

by their nature can provide reasonable but not absolute

assurance against material misstatement or loss. Oversight

of the risk management framework and internal controls is

delegated to the Committee.

Internal audit

In my capacity as chair of the Committee, I have regular

meetings with Internal Audit to evaluate both performance

and any impediments that would constrain their work.

The Head of Internal Audit has a direct reporting line to me,

and reports operationally to the Interim Finance Director.

The Committee approves the programme of work on an

annual basis and monitors results and follow-up actions,

reporting to the Board on any significant findings. The

Committee reviews Internal Audit reports and monitors how

management responds to findings, which reassures the

Committee and the Board that internal controls are

functioning effectively.

Our Internal Audit team carries out internal audit activities,

with some audits outsourced to third-party suppliers and

overseen by the Head of Internal Audit. The scope of internal

audit reviews is appraised at the start of each review

which has allowed us to identify areas in which controls can

be strengthened.

In FY25, JE’s assurance framework delivered a comprehensive

programme of internal audit reviews and strengthened

management oversight. The Internal Audit team reviewed

a broad range of financial, operational and compliance

areas, providing assurance on key systems, controls and

emerging risks.

Reviews addressed areas including fraud prevention,

cybersecurity, new product development, property

management and regulatory scheme administration.

The programme identified opportunities to strengthen

controls, enhance monitoring and improve governance,

with management implementing a series of improvements

to address findings and support ongoing risk management.

The Committee maintained robust oversight of risk, control

and assurance activities throughout the year. These reviews

identified some moderate and high-priority issues, which

led the Company to strengthen control processes, review

strategy and reorganise responsibilities.

Risk management

During the year, the Board conducted its annual review of the

Company’s risk appetite and aligned it with principal risks.

In June, we held an offsite meeting with Board members

and senior management to facilitate an in-depth discussion

on risk management. We undertook a thorough evaluation

of principal risks and associated mitigation strategies, and

assessed emerging risks in the context of geopolitical events,

climate change and the macroeconomic environment. The

rapid pace of change within the energy sector and its effects

on people development, skills, innovation and technology

were also considered.

This review resulted in us updating the definitions and

mitigating actions for certain principal risks, as well as

adding a new principal risk relating to the supply chain.

Further details on risks and mitigation measures can be found

in the Group risk management section on pages 70 to 80.

Several follow-up actions concerning longer-term strategic

risks are being incorporated into our long-term business plans

and scenario analysis.

In recent years, we have communicated the potential risks to

our business arising from volatility within the wholesale energy

market. While market conditions have become more stable

since their peak in 2023, we have substantially hedged our

electricity purchases through to 31 December 2027. Although

we continue to monitor short-term market developments,

our focus has now shifted to strategic planning for the period

beyond 2027. This includes preparations for negotiating a

new supply contract and ongoing efforts to mitigate future

risks associated with market volatility.

I would like to thank members of the Committee, management

and PwC for their continued support throughout the year.

Roger Blundell

Chair

15 December 2025

Directors report

(continued)

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Financial statements

Governance

Strategy

Committee report

On behalf of the Board, I am pleased to submit the

Remuneration Committee’s report for the financial year

ended 30 September 2025.

Committee changes

In July, Tony Taylor resigned as Chair of the Remuneration

Committee. Upon assuming the role of Chair, I was pleased

to welcome Roger Blundell to the Committee. I extend my

sincere appreciation to Tony for his leadership during his

tenure, as well as to our Committee members, Phil Austin,

Amanda Iceton, and Roger Blundell, for their dedication,

perspectives and significant contributions throughout the

year in supporting our work.

Meetings

Four meetings took place during the last financial year, with

100% attendance by all Committee members.

Note: Terms of Reference for the Committee are updated annually, in line

with UK Corporate Governance Code and are available on the Company’s

website (

www.jec.co.uk

Remuneration policy

Acting under the authority delegated by the Board, the

Committee establishes the Company’s Remuneration Policy

and is charged with determining the remuneration terms

and employment conditions for the Executive Directors.

We also assess the remuneration framework for senior

management and review the overall compensation policy

for the broader workforce to ensure it aligns appropriately

throughout the organisation.

JE’s remuneration policy is structured to ensure the executive

compensation framework effectively attracts, motivates

and retains the talent essential to achieve the Company’s

long-term objectives.

We set remuneration packages for Executive Directors that

are aligned with market standards for comparable positions,

ensuring equitable compensation for their contributions to

the Company’s performance across both short and long-

term horizons.

Remuneration packages consist of a base salary and benefits,

complemented by a variable element in the form of an annual

performance-based bonus.

Benefits for Executive Directors principally consist of

membership of a pension scheme, a car allowance and

private health care.

When determining executive remuneration, the Committee

consults pertinent local and international benchmarks.

Our methodology

We set targets and review Executive Directors’ pay to

ensure performance aligns with key business objectives.

Over the past two years, we have refined our business

planning model, improving the format and content of our

Corporate Scorecard.

The Executive Annual Bonus Scheme aims to support both

our short-term and long-term objectives and encourages

advancement towards achieving our vision and strategy.

Bonuses for Executive Directors and ELT members are

determined according to performance, measured against

the Corporate Scorecard and individual objectives. The

Committee establishes these criteria, which receive Board

approval prior to each financial year.

Our Business Plan is structured around delivering safe, reliable,

affordable and sustainable services, with an overarching

focus on customer experience. The Corporate Scorecard

aligns with these outcomes and tracks key metrics including

customer service and satisfaction, employee engagement,

health and safety, financial results and progress on

strategic objectives.

Strategic objectives involve developing JE’s future energy

supply and demand plans, sourcing energy from France, and

implementing a broader network investment programme

aimed at increasing system resilience and supporting

Jersey’s progress toward net zero emissions.

The scorecard reflects our sustainability and TCFD objectives

by facilitating the implementation of our renewables and

network investment programme. It is communicated clearly

throughout the organisation, outlining strategic priorities and

creating a line of sight for all colleagues on their individual

contribution to overall company performance.

We review the salary and benefits for the Executive Team

each October. In November 2024 both Executive Directors

were awarded increases of 5.0% on base salary.

Each Executive Director is subject to a maximum limit on their

total variable compensation. These maximum awards are

granted exclusively in recognition of exceptional performance.

In 2018, the bonus scheme was revised to let the Committee

defer up to 50% of an award for two years, with payout

linked to share price changes before vesting. The deferred

portion is subject to malus and clawback rules.

Remuneration

Committee

Kayte O’Neill

Chair

We aim to maintain a

remuneration framework

that motivates leaders to deliver

our strategic priorities while

upholding strong governance

and accountability.

The basic salary/fees and bonuses paid in year, as well as the deferred bonus attributable to the 2022/23 financial year paid

in year, to Directors for the year ended 30 September 2025 was as follows:

Fixed Pay

Variable Pay

Salary/fees

Benefits

in kind

Bonus paid

in year

Deferred

bonus paid

in year

Total

2025

Total

2024

Executive Directors

C. J. Ambler

332,774

16,512

123,060

58,260

530,606

492,665

L. G. Fulton

231,704

13,495

75,992

–

321,191

282,420

Non-Executive Directors

P. J. Austin

62,500

1,406

–

63,906

59,406

A. A. Bryce

9,000

352

–

9,352

37,406

W. Dorman

28,125

1,055

–

29,180

36,406

A. Iceton

35,000

1,406

–

36,406

33,406

K. O’Neill

38,000

1,406

–

39,406

35,406

T. Taylor

36,250

1,406

–

37,656

35,406

I. Hill

37,000

1,406

–

38,406

–

R. Blundell

38,125

1,406

–

39,531

–

Total

848,478

39,850

199,052

58,260

1,145,640

1,012,521

The basic salary and bonus paid to L.G. Fulton represents the full-year remuneration, including the period after stepping down from the Board in August 2025.

Service contracts

The service contracts for Executive Directors specify a notice

period of 12 months, with annual re-election required at each

Annual General Meeting. Non-Executive Directors have

service contracts with no unexpired term at the point of

election or re-election at the AGM.

Pension benefits

We have two pension plans: a defined benefit scheme, which

has been closed to new entrants since 2013, and a defined

contribution scheme that is accessible to all staff. Under the

defined benefit scheme, the employer contributes at a rate

of 20.6%, while the employee’s contribution rate is 6%.

The defined benefit pension scheme does not provide for

contractual increases to pensions currently in payment.

Upon Mr Ambler’s appointment to the Company, the Board

resolved that he would be entitled to participate in a

non-contributory version of the defined benefit scheme

(refer also to page 97, Statement of Compliance section).

Outlined on the next page are the pension benefits to which

Mr Ambler is entitled. These benefits are limited to the scheme

in which he accrued pension rights during his service as a

Director and include benefits relating to both pre-directorship

and post-directorship service, as well as any service

transferred into the scheme from previous employment.

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Governance

Strategy

Increase in

accrued

pension

during

the year

Accrued

pension at

30.9.2025

Transfer

value at

30.9.2025

Transfer

value at

30.9.2024

Directors

contributions

during

the year

Increase/

(decrease)

in transfer

value less

Directors

contributions

C. J. Ambler

£10,712

£113,204

£1,331,120

£1,305,156

–

£25,964

The nominal increase in accrued pension during the year represents the additional accrued pension entitlement at the year-end compared to the previous

year-end, which can be seen in last year’s Directors Disclosures paper

2 The pension entitlement shown, calculated using the data provided by Jersey Electricity Plc on 6 October 2025, is that which would be paid annually on

retirement at age 60 or at date of calculation if over NRA, based on service at the year-end.

The transfer values have been calculated using the basis and method appropriate at each reporting date. It is assumed that the deferred pension commences

from the earliest age at which the member can receive an unreduced pension. The transfer values include the value of any accrued AVC pensions.

4 Along with all other Scheme members, Directors have the option to pay Additional Voluntary Contributions (AVCs) to the Scheme to purchase additional

final salary benefits. AVCs paid by the Directors during the year were nil.

5 The increase in transfer value over the year is after deduction of contributions made by the Director and transfers-in during the year.

CEO pay ratio

This table shows the CEO pay ratio since 2021. This reflects

how the CEO’s total remuneration compares to the rest of

the employees in the organisation at the 25th, 50th, and

75th percentiles.

The CEO pay ratio has remained unchanged from the

previous year and is consistent with that of comparable

publicly listed companies of a similar size.

25th %ile

50th %ile

75th %ile

2025

8.5:1

6.2:1

4.5:1

2024

8.3:1

6.2:1

4.6:1

2023

8.7:1

6.5:1

4.6:1

2022

8.1:1

6.2:1

4.3:1

2021

8.4:1

6.3:1

4.4:1

Employee engagement

Employee engagement is a key element of the Corporate

Scorecard and is reinforced through ongoing initiatives

and the Workforce, Engagement and Culture Forum. This

forum provides a structured platform for employees to

communicate feedback and suggestions directly to senior

management, with Non-Executive Directors in attendance

to convey relevant insights to the Board.

During the year, the Workforce Engagement and Culture

Forum met four times, on matters such as workplace culture

and wellbeing, facilities, sustainability and

internal communications.

The Company routinely administers employee surveys that

yield important insights into engagement levels across

multiple dimensions, such as compensation.

Share schemes

At the 2011 AGM, we authorised an all-employee share

scheme. Four tranches of shares have since been allocated,

with up to 400 shares vesting per employee. The final tranche

of 100 shares distributed in the 2020 financial year vested in

September 2023.

The Company does not operate other share-based incentives

such as option schemes or long-term incentive plans. The

Committee may defer up to 50% of the performance bonus

for Executive Directors for two years, with payment subject

to changes in the listed share price prior to vesting.

Non‑Executive Directors’ remuneration

The remuneration of the Non-Executive Directors (NED) is

determined by the Executive Directors, with the assistance of

independent advice concerning comparable organisations

and appointments and considering the Committees in which

they are involved.

Following a review and benchmarking of NED fees, valid from

1 April, adjustments were made in 2025. These are shown on

page 109.

External appointments

We encourage Executive Directors to broaden their

experience by accepting Non-Executive appointments to

organisations outside the Group. Such appointments are

subject to prior approval by the Board, having taken into

consideration the expected time commitments and, the

Board also determines the extent to which any fees may

be retained by the Director. During the year, the external

appointments held by Executive Directors, excluding those

directly connected with their employment by the Company,

were as follows:

C. J. Ambler

Foresight Solar Fund Ltd

(resigned 17 June 2025)

The total fees were £38,073 of which £7,615 was retained by

the Company.

Directors report

(continued)

Directors’ loans

At the time of hiring the Executive Director and relocating them to Jersey, the Company provided an interest-bearing secured

loan to assist with the purchase of a residential property on the Island. Since then, the Executive Director has made substantial

repayments, and the balance on the loan was:

30.9.2025

30.9.2024

C. J. Ambler

£300,000

Directors’ share interests

The Directors’ beneficial interests in the shares of the Company at 30 September 2025 were as shown in this table:

‘A’ Ordinary shares

3.5% Preference shares

5% Preference shares

2025

2024

2025

2024

2025

2024

C. J. Ambler

11,720

7,720

–

P. J. Austin

7,000

–

R. Blundell

6,500

–

I. Hill

–

A. Iceton

6,000

–

K. O’Neill

–

T. Taylor

9,000

–

40,220

29,720

–

There have been no other changes in the interests set out above between 30 September 2025 and 15 December 2025.

K. O’Neill

Chair

15 December 2025

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Jersey Electricity

Governance

Strategy

Financial statements

Directors’ responsibilities for the Financial statements

The Directors are responsible for preparing the Annual Report

and Accounts and the audited financial statements in

accordance with applicable law and regulations.

Companies (Jersey) Law 1991 (“Company Law”) requires

the Directors to prepare Financial Statements for each

financial year. The Directors are required by the International

Accounting Standards (IAS) Regulation to prepare the Group

Financial Statements under International Financial Reporting

Standards (IFRS) as adopted by the European Union. The

Financial Statements are also required by Company Law to

give a true and fair view of the state of affairs of the Company

and of the profit or loss of the Company for that period.

IAS 1 requires that financial statements present fairly for

each financial year the Group’s financial position, financial

performance and cash flows. This requires the faithful

representation of the effects of transactions, other events and

conditions in accordance with the definitions and recognition

criteria for assets, liabilities, income and expenses set out in the

IAS Board’s ‘Framework for the preparation and presentation

of financial statements’. In virtually all circumstances, a

fair presentation will be achieved by compliance with all

applicable IFRS. However, Directors are also required to:

Properly select and apply accounting policies;

Present information, including accounting policies, in

a manner that provides relevant, reliable, comparable

and understandable information;

Provide additional disclosures when compliance with the

specific requirements in IFRS are insufficient to enable

users to understand the impact of particular transactions,

other events and conditions on the entity’s financial

position and financial performance; and

Make an assessment of the Company’s ability to continue

as a going concern.

The Directors are responsible for keeping proper accounting

records that disclose with reasonable accuracy at any time

the financial position of the Company and Group and enable

them to ensure that the financial statements comply with

the Companies (Jersey) Law 1991. They are also responsible

for safeguarding the assets of the Company and Group

and hence for taking reasonable steps for the prevention

and detection of fraud and other irregularities.

The Directors are responsible for the maintenance

and integrity of the corporate and financial information

included on the Company’s website. Legislation in Jersey

and in the United Kingdom governing the preparation

and dissemination of Financial Statements may differ

from legislation in other jurisdictions.

The Directors consider that the Group has adequate

resources to continue in operational existence for the

foreseeable future. The Financial Statements are therefore

prepared on a going concern basis. Further details of the

Group’s going concern review are provided in note 1 of the

financial statements on page 124.

Having taken advice from the ARC, the Board considers the

Annual Report and financial statements, taken as a whole,

to be fair, balanced and understandable and that they

provide the information necessary for shareholders to assess

the Company’s and Group’s performance, business model

and strategy.

Responsibility statement

We confirm that to the best of our knowledge:

The financial statements, prepared in accordance with

International Financial Reporting Standards as adopted by

the European Union, give a true and fair view of the assets,

liabilities, financial position and profit of the Company

and the undertakings included in the consolidation taken

as a whole; and

The management report includes a fair review of the

development and performance of the business and the

position of the Company, and the undertakings included

in the consolidation taken as a whole, together with a

description of the principal risks and uncertainties that

they face.

By order of the Board

C. J. Ambler

Chief Executive

15 December 2025

Financial statements

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Governance

Strategy

Financial statements

Independent Auditor’s Report

to the members of Jersey Electricity plc

Report on the audit of the consolidated financial statements

Our opinion

In our opinion, the consolidated financial statements give

a true and fair view of the consolidated financial position

of Jersey Electricity Plc (“the Company”) and its subsidiaries

(together “the Group”) as at 30 September 2025, and of their

consolidated financial performance and their consolidated

cash flows for the year then ended in accordance with

International Financial Reporting Standards as adopted by

the European Union and have been properly prepared in

accordance with the requirements of the Companies

(Jersey) Law 1991.

What we have audited

The Group’s consolidated financial statements comprise:

The consolidated balance sheet as at 30 September 2025;

The consolidated income statement for the year

then ended;

The consolidated statement of comprehensive income

for the year then ended;

The consolidated statement of changes in equity for the

year then ended;

The consolidated statement of cash flows for the year

then ended; and

The notes to the consolidated financial statements,

comprising material accounting policy information and

other explanatory information.

Basis for opinion

We conducted our audit in accordance with International

Standards on Auditing (“ISAs”). Our responsibilities under

those standards are further described in the Auditor’s

responsibilities for the audit of the consolidated financial

statements section of our report.

We believe that the audit evidence we have obtained is

sufficient and appropriate to provide a basis for our opinion.

Independence

We are independent of the Group in accordance with the

ethical requirements that are relevant to our audit of the

consolidated financial statements of the Group, as required

by the Crown Dependencies’ Audit Rules and Guidance. We

have fulfilled our other ethical responsibilities in accordance

with these requirements.

Our audit approach

Audit scope

We conducted our audit work in Jersey.

We tailored the scope of our audit taking into account

the operations of the Group, the accounting processes

and controls and the industry in which the Group

operates. The Group is based solely in Jersey and the

consolidated financial statements are a consolidation

of the Company, Jersey Deep Freeze Limited and Jersey

Offshore Wind Limited.

Our audit work was focused on the Company as it

contributes substantially all of the Group’s total assets

and profit from operations before taxation. A lower level

of focus was placed on balances and transactions at

the subsidiaries, based on our risk assessment and their

minor contribution to the Group’s profit from operations

before taxation.

Key audit matters

Recognition of energy and retail revenue.

Assessment of pension assumptions applied in the

valuation of the defined benefit obligation.

Materiality

Overall Group materiality: £711,150 (FY24

: £756,300) based on

approximately 5% of profit from operations before taxation.

Performance materiality: £533,300 (FY24

: £567,200).

The scope of our audit

As part of designing our audit, we determined materiality

and assessed the risks of material misstatement in the

consolidated financial statements. In particular, we considered

where the directors made subjective judgements; for

example, in respect of significant accounting estimates that

involved making assumptions and considering future events

that are inherently uncertain. As in all of our audits, we also

addressed the risk of management override of internal

controls, including among other matters, consideration of

whether there was evidence of bias that represented a risk

of material misstatement due to fraud.

Key audit matters

Key audit matters are those matters that, in the auditor’s

professional judgement, were of most significance in the

audit of the consolidated financial statements of the current

period and include the most significant assessed risks of

material misstatement (whether or not due to fraud) identified

by the auditor, including those which had the greatest effect

on: the overall audit strategy; the allocation of resources in

the audit; and directing the efforts of the engagement team.

These matters, and any comments we make on the results

of our procedures thereon, were addressed in the context

of our audit of the consolidated financial statements as a

whole, and in forming our opinion thereon, and we do not

provide a separate opinion on these matters.

This is not a complete list of all risks identified by our audit.

Key audit matter

How our audit addressed the key audit matter

Recognition of energy and retail revenue

Refer to note 1 (Accounting policies) and note 3 (Business segments)

to the consolidated financial statements.

The Group recognised £118.4m of energy revenue and £18.1m of

retail revenue.

Revenue from the energy segment comprises charges for the

consumption of electricity by customers and service connections.

Revenue from the retail segment is derived from the sale of consumer

products in the Company’s “Powerhouse” store and online.

We identified this as a key audit matter because energy and retail

revenue are material to the consolidated financial statements and

revenue recognition was identified as an area of focus in the audit

plan we presented to the Audit and Risk Committee.

We obtained an understanding and evaluated the overall control

environment around the recognition of revenue from the energy

and retail segments.

We assessed the accounting policy for compliance with the

accounting framework.

We materially matched revenue from the general ledger system to

receipts in the bank statement using data analytics and

investigated material unmatched items.

For energy revenue:

We evaluated the operating effectiveness of the IT General Controls

surrounding the smart meter, billing and general ledger systems.

We traced data from the meter reading systems to the general

ledger system.

We applied approved tariff rates to the readings from the general

ledger system and recalculated the expected revenue.

We materially reconciled the expected revenue to the invoices

raised to customers from the general ledger system.

For retail revenue:

We performed a margin analysis between cost of sales and revenue

based on the data obtained from the general ledger. The margin

analysis was based on tests of detail performed on the cost of sales

by agreeing a sample of expenses to supporting documentation.

Based on the work detailed above, we had no material matters to

report to those charged with corporate governance.

Assessment of pension assumptions applied in the valuation

of the defined benefit obligation

Refer to note 1 (Accounting policies), note 2 (Critical Accounting

Judgements and key sources of estimation uncertainty), and

note 16 (Pensions) to the consolidated financial statements

As at the year-end, the Group recognises a surplus in the defined

benefit pension plan of £27.3m. This net surplus comprises £109.7m

of plan assets less £82.5m of estimated plan liabilities.

We consider the valuation of the defined benefit obligation

liabilities to be a key audit matter as the valuation requires

significant levels of judgement and technical expertise including

the use of an actuarial assessment to support the directors in

selecting appropriate assumptions. Changes in a number of key

financial and demographic assumptions (including discount rates,

salaries increase, inflation, and mortality rates) can have a

material impact on the calculation of the pension obligation.

The Group used an independent qualified actuary to assess the

defined benefit obligation at year end.

We obtained an understanding and evaluated the overall control

environment around the defined benefit obligation.

We assessed the accounting policy for compliance with the

accounting framework.

We confirmed that the Group’s actuarial experts are qualified,

appropriately affiliated to third party industry bodies, and are

independent of the Group.

We confirmed the existence of the pension asset by obtaining

confirmation from the custodians

We revalued the pension asset as at year end to verify the accuracy

of the fair value of the asset.

We engaged our auditor’s experts to evaluate the assumptions

made in relation to the valuation of the scheme liabilities.

We compared the various assumptions used to our internally

developed benchmarks.

We considered the consistency and appropriateness of

methodology and assumptions applied compared to the prior

year end and the most recent actuarial valuation available as at

the year end.

We tested the completeness and accuracy of the retirement

benefit obligation disclosures.

Based on the work detailed above, we had no material matters

to report to those charged with corporate governance.

116

117

Jersey Electricity

Annual Report and Accounts 2025

Jersey Electricity

Governance

Strategy

Financial statements

Independent Auditor’s Report

(continued)

How we tailored the audit scope

We tailored the scope of our audit to ensure that we

performed enough work to be able to give an opinion on

the consolidated financial statements as a whole, taking

into account the structure of the Group, the accounting

processes and controls, the industry in which the Group

operates, and we considered the risk of climate change

and the potential impact thereof on our audit approach.

Materiality

The scope of our audit was influenced by our application

of materiality. We set certain quantitative thresholds for

materiality. These, together with qualitative considerations,

helped us to determine the scope of our audit and the nature,

timing and extent of our audit procedures on the individual

financial statement line items and disclosures and in

evaluating the effect of misstatements, both individually

and in aggregate on the consolidated financial statements

as a whole.

Based on our professional judgement, we determined

materiality for the consolidated financial statements as

a whole as follows:

Overall Group materiality

£711,150 (FY24: £756,300).

How we determined it

Approximately 5% of profit from

operations before taxation

Rationale for

benchmark applied

We believe that the Group's profit

from operations before taxation is

the most appropriate benchmark

because this is the key metric of

interest to members. It is also a

generally accepted measure used

for companies in this industry

For each component in the scope of our Group audit, we

allocated a materiality that is less than our overall Group

materiality. The range of materiality allocated across

components was up to £700,000.

We use performance materiality to reduce to an

appropriately low level the probability that the aggregate of

uncorrected and undetected misstatements exceeds overall

materiality. Specifically, we use performance materiality

in determining the scope of our audit and the nature

and extent of our testing of account balances, classes of

transactions and disclosures, for example in determining

sample sizes. Our performance materiality was 75%

(FY24: 75%) of overall materiality, amounting to £533,300

(FY24: £567,200) for the Group financial statements.

In determining the performance materiality, we considered

a number of factors – the history of misstatements, risk

assessment and aggregation risk and the effectiveness of

controls - and concluded that an amount at the upper end

of our normal range was appropriate.

We agreed with the Audit and Risk Committee that we would

report to them misstatements identified during our audit

above £35,550 (FY24: £37,815) as well as misstatements

below that amount that, in our view, warranted reporting

for qualitative reasons.

Reporting on other information

The other information comprises all the information included

in the Annual Report and Accounts 2025 (the “Annual Report”)

but does not include the consolidated financial statements

and our auditor’s report thereon. The directors are responsible

for the other information.

Our opinion on the consolidated financial statements does

not cover the other information and we do not express any

form of assurance conclusion thereon.

In connection with our audit of the consolidated financial

statements, our responsibility is to read the other information

and, in doing so, consider whether the other information is

materially inconsistent with the consolidated financial

statements or our knowledge obtained in the audit, or

otherwise appears to be materially misstated. If, based on

the work we have performed, we conclude that there is a

material misstatement of this other information, we are

required to report that fact. We have nothing to report based

on these responsibilities.

Responsibilities for the consolidated

financial statements and the audit

Responsibilities of the directors for the

consolidated financial statements

As explained more fully in the Directors’ Responsibilities for

the Financial Statements, the directors are responsible for

the preparation of the consolidated financial statements

that give a true and fair view in accordance International

Financial Reporting Standards as adopted by the European

Union, the requirements of Jersey law and for such internal

control as the directors determine is necessary to enable

the preparation of consolidated financial statements that

are free from material misstatement, whether due to fraud

or error.

In preparing the consolidated financial statements, the

directors are responsible for assessing the Group’s ability

to continue as a going concern, disclosing, as applicable,

matters related to going concern and using the going

concern basis of accounting unless the directors either

intend to liquidate the Group or to cease operations, or

have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of

the consolidated financial statements

Our objectives are to obtain reasonable assurance about

whether the consolidated financial statements as a whole

are free from material misstatement, whether due to fraud

or error, and to issue an auditor’s report that includes our

opinion. Reasonable assurance is a high level of assurance,

but is not a guarantee that an audit conducted in accordance

with ISAs will always detect a material misstatement when

it exists. Misstatements can arise from fraud or error and are

considered material if, individually or in aggregate, they

could reasonably be expected to influence the economic

decisions of users taken on the basis of these consolidated

financial statements.

Our audit testing might include testing complete populations

of certain transactions and balances, possibly using data

auditing techniques. However, it typically involves selecting

a limited number of items for testing, rather than testing

complete populations. We will often seek to target particular

items for testing based on their size or risk characteristics.

In other cases, we will use audit sampling to enable us to

draw a conclusion about the population from which the

sample is selected.

As part of an audit in accordance with ISAs, we exercise

professional judgement and maintain professional scepticism

throughout the audit. We also:

Identify and assess the risks of material misstatement of the

consolidated financial statements, whether due to fraud

or error, design and perform audit procedures responsive

to those risks, and obtain audit evidence that is sufficient

and appropriate to provide a basis for our opinion. The

risk of not detecting a material misstatement resulting

from fraud is higher than for one resulting from error, as

fraud may involve collusion, forgery, intentional omissions,

misrepresentations, or the override of internal control.

Obtain an understanding of internal control relevant to

the audit in order to design audit procedures that are

appropriate in the circumstances, but not for the purpose

of expressing an opinion on the effectiveness of the Group’s

internal control.

Evaluate the appropriateness of accounting policies

used and the reasonableness of accounting estimates

and related disclosures made by the directors.

Conclude on the appropriateness of the directors’ use

of the going concern basis of accounting and, based

on the audit evidence obtained, whether a material

uncertainty exists related to events or conditions that may

cast significant doubt on the Group’s ability to continue as

a going concern over a period of at least twelve months

from the date of approval of the consolidated financial

statements. If we conclude that a material uncertainty

exists, we are required to draw attention in our auditor’s

report to the related disclosures in the consolidated

financial statements or, if such disclosures are inadequate,

to modify our opinion. Our conclusions are based on the

audit evidence obtained up to the date of our auditor’s

report. However, future events or conditions may cause

the Group to cease to continue as a going concern.

Evaluate the overall presentation, structure and content

of the consolidated financial statements, including the

disclosures, and whether the consolidated financial

statements represent the underlying transactions and

events in a manner that achieves fair presentation.

Obtain sufficient appropriate audit evidence regarding

the financial information of the entities or business activities

within the Group to express an opinion on the consolidated

financial statements. We are responsible for the direction,

supervision and performance of the Group audit. We

remain solely responsible for our audit opinion.

We communicate with those charged with governance

regarding, among other matters, the planned scope and

timing of the audit and significant audit findings, including

any significant deficiencies in internal control that we identify

during our audit.

We also provide those charged with governance with

a statement that we have complied with relevant ethical

requirements regarding independence, and to communicate

with them all relationships and other matters that may

reasonably be thought to bear on our independence, and

where applicable, related safeguards.

From the matters communicated with those charged with

governance, we determine those matters that were of

most significance in the audit of the consolidated financial

statements of the current period and are therefore the key

audit matters. We describe these matters in our auditor’s

report unless law or regulation precludes public disclosure

about the matter or when, in extremely rare circumstances,

we determine that a matter should not be communicated

in our report because the adverse consequences of doing

so would reasonably be expected to outweigh the public

interest benefits of such communication.

Use of this report

This report, including the opinions, has been prepared for

and only for the members as a body in accordance with

Article 113A of the Companies (Jersey) Law 1991 and for no

other purpose. We do not, in giving these opinions, accept

or assume responsibility for any other purpose or to any

other person to whom this report is shown or into whose

hands it may come save where expressly agreed by our

prior consent in writing.

118

119

Jersey Electricity

Annual Report and Accounts 2025

Jersey Electricity

Governance

Strategy

Financial statements

Consolidated Income Statement

for the year ended 30 September 2025

Report on other legal and

regulatory requirements

Company Law exception reporting

Under the Companies (Jersey) Law 1991 we are required to

report to you if, in our opinion:

We have not received all the information and

explanations we require for our audit;

Proper accounting records have not been kept; or

The consolidated financial statements are not in

agreement with the accounting records.

We have no exceptions to report arising from this responsibility.

Corporate governance statement

The Listing Rules require us to review the directors’ statements

in relation to going concern, longer-term viability and that

part of the corporate governance statement relating to

the Company’s compliance with the provisions of the

UK Corporate Governance Code specified for our review.

Our additional responsibilities with respect to the corporate

governance statement as other information are described

in the Reporting on other information section of this report.

Based on the work undertaken as part of our audit, we

have concluded that each of the following elements of

the corporate governance statement, included within the

Group Risk Management, the Financial Review, and the

Directors’ Responsibilities for the Financial Statements

sections of the Annual Report, is materially consistent with

the consolidated financial statements and our knowledge

obtained during the audit, and we have nothing material

to add or draw attention to in relation to:

The directors’ confirmation that they have carried out a

robust assessment of the emerging and principal risks;

The disclosures in the Annual Report that describe those

principal risks, what procedures are in place to identify

emerging risks and an explanation of how these are being

managed or mitigated;

The directors’ statement in the consolidated financial

statements about whether they considered it appropriate

to adopt the going concern basis of accounting in

preparing them, and their identification of any material

uncertainties to the Group’s ability to continue to do so

over a period of at least twelve months from the date of

approval of the consolidated financial statements;

The directors’ explanation as to their assessment of the

Group’s prospects, the period this assessment covers and

why the period is appropriate; and

The directors’ statement as to whether they have a

reasonable expectation that the Company will be able

to continue in operation and meet its liabilities as they

fall due over the period of its assessment, including any

related disclosures drawing attention to any necessary

qualifications or assumptions.

Our review of the directors’ statement regarding the longer-

term viability of the Group was substantially less in scope

than an audit and only consisted of making enquiries and

considering the directors’ process supporting their statements;

checking that the statements are in alignment with the

relevant provisions of the UK Corporate Governance Code

(the “Code”); and considering whether the statement is

consistent with the consolidated financial statements and

our knowledge and understanding of the Group and its

environment obtained in the course of the audit.

In addition, based on the work undertaken as part of our

audit, we have concluded that each of the following elements

of the corporate governance statement is materially

consistent with the consolidated financial statements and

our knowledge obtained during the audit:

The directors’ statement that they consider the

Annual Report, taken as a whole, is fair, balanced

and understandable, and provides the information

necessary for the members to assess the Group's

position, performance, business model and strategy;

The section of the Annual Report that describes the

review of effectiveness of risk management and

internal control systems; and

The section of the Annual Report describing the work of

the Audit and Risk Committee.

We have nothing to report in respect of our responsibility

to report when the directors’ statement relating to the

Company’s compliance with the Code does not properly

disclose a departure from a relevant provision of the Code

specified under the Listing Rules for review by the auditors.

Other matter

The Company is required by the Financial Conduct Authority

Disclosure Guidance and Transparency Rules to include

these consolidated financial statements in an annual

financial report prepared under the structured digital format

required by DTR 4.1.15R – 4.1.18R and filed on the National

Storage Mechanism of the Financial Conduct Authority.

This auditor’s report provides no assurance over whether

the structured digital format annual financial report has

been prepared in accordance with those requirements.

James de Veulle

For and on behalf of

PricewaterhouseCoopers CI LLP

Chartered Accountants and Recognised Auditor

Jersey, Channel Islands

15 December 2025

2025

2024

Note

£000

Revenue

146,196

135,742

Cost of sales

(92,731)

(83,184)

Gross profit

53,465

52,558

Movement in valuation of investment properties

(895)

(890)

Operating expenses

(38,688)

(37,299)

Group operating profit

13,882

14,369

Finance income

1,883

2,291

Finance costs

(1,575)

(1,533)

Profit from operations before taxation

14,190

15,127

Taxation

(3,126)

(3,427)

Profit from operations after taxation

11,064

11,700

Attributable to:

Owners of the Company

11,000

11,618

Non-controlling interests

11,064

11,700

Earnings per share - basic and diluted

35.90p

37.92p

The notes on pages 124 to 150 form an integral part of these accounts. The independent auditor’s report is on pages 114 to 118.

Independent Auditor’s Report

(continued)

120

Jersey Electricity

Annual Report and Accounts 2025

Jersey Electricity

121

Strategy

Governance

Financial statements

Consolidated Balance Sheet

as at 30 September 2025

Consolidated Statement of Comprehensive Income

for the year ended 30 September 2025

2025

2024

Note

£000

Profit for the year

11,064

11,700

Items that will not be reclassified subsequently to profit or loss:

Actuarial gain on defined benefit scheme

1,049

925

Income tax relating to items not reclassified

(210)

(185)

839

740

Items that may be reclassified subsequently to profit or loss:

Fair value gain/(loss) on cash flow hedges

4,667

(3,483)

Income tax relating to items that may be reclassified

(933)

697

3,734

(2,786)

Total comprehensive income for the year

15,637

9,654

Attributable to:

Owners of the Company

15,573

9,572

Non-controlling interests

15,637

9,654

All results in the year have been derived from continuing operations.

The notes on pages 124 to 150 form an integral part of these accounts. The independent auditor’s report is on pages 114 to 118.

2025

2024

Note

£000

Non-current assets

Intangible assets

227

364

Property, plant and equipment

243,398

225,523

Right of use assets

5,302

4,621

Investment properties

25,830

26,725

Trade and other receivables

300

Retirement benefit asset

27,262

27,952

Derivative financial instruments

21(ii)

636

–

Other investments

Total non-current assets

302,960

285,490

Current assets

Inventories

7,916

8,435

Trade and other receivables

25,172

24,902

Derivative financial instruments

21(ii)

550

–

Cash and cash equivalents

38,690

49,190

Total current assets

72,328

82,527

Total assets

375,288

368,017

Current Liabilities

Trade and other payables

22,207

23,027

Current tax liabilities

2,904

3,413

Lease liabilities

339

306

Derivative financial instruments

21(ii)

571

2,601

Total current liabilities

26,021

29,347

Net current assets

46,307

53,180

Non-current liabilities

Trade and other payables

28,322

27,222

Lease liabilities

4,278

3,878

Derivative financial instruments

21(ii)

–

1,451

Financial liabilities - preference shares

235

Borrowings

30,000

Deferred tax liabilities

32,285

30,923

Total non-current liabilities

95,120

93,709

Total liabilities

121,141

123,056

Net assets

254,147

244,961

Equity

Share capital

1,532

Revaluation reserve

5,270

ESOP reserve

(37)

(35)

Other reserves

493

(3,241)

Retained earnings

246,851

241,391

Equity attributable to the owners of the Company

254,109

244,917

Non-controlling interests

Total equity

254,147

244,961

Approved by the Board on 15 December 2025

C.J Ambler

P.J Austin

Director

The notes on pages 124 to 150 form an integral part of these accounts. The independent auditor’s report is on pages 114 to 118.

122

Jersey Electricity

Annual Report and Accounts 2025

Jersey Electricity

123

Strategy

Governance

Financial statements

Consolidated Statement of Cash Flows

for the year ended 30 September 2025

Consolidated Statement of Changes in Equity

for the year ended 30 September 2025

Revaluation

ESOP

Other

Retained

capital

reserve

reserves

earnings

Total

Note

£000

At 1 October 2024

1,532

5,270

(35)

(3,241)

241,391

244,917

Total comprehensive income

and expense for the year

–

11,000

Movement on share option scheme

–

(2)

–

(2)

Movement on hedges (net of tax)

–

3,734

–

3,734

Actuarial gain on defined benefit

scheme (net of tax)

–

839

Equity dividends

–

(6,379)

At 30 September 2025

1,532

5,270

(37)

493

246,851

254,109

At 1 October 2023

1,532

5,270

(35)

(455)

235,100

241,412

Total comprehensive income

and expense for the year

–

11,618

Amortisation of employee share

option scheme

–

Movement on hedges (net of tax)

–

(2,786)

–

(2,786)

Actuarial loss on defined benefit

scheme (net of tax)

–

740

Equity dividends

–

(6,067)

At 30 September 2024

1,532

5,270

(35)

(3,241)

241,391

244,917

‘Other reserves’ represents the foreign currency hedging reserve.

The notes on pages 124 to 150 form an integral part of these accounts. The independent auditor’s report is on pages 114 to 118.

2025

2024

£000

Cash flows from operating activities

Operating profit

13,882

14,369

Depreciation and amortisation charges

11,821

14,181

Share-based reward charges

(2)

–

Loss on revaluation of investment property

895

890

Pension operating charge less contributions paid

1,739

(1,481)

Deemed interest income from hire purchase arrangements

244

201

Loss/(profit) on sale of property, plant and equipment

(76)

Operating cash flows before movement in working capital

28,503

28,161

Working capital adjustments:

Decrease in inventories

548

752

Increase in trade and other receivables

(269)

(1,133)

(Decrease)/increase in trade and other payables

1,304

1,130

Net movement in working capital

1,583

749

Interest paid on borrowings

(1,363)

(1,208)

Preference dividends paid

(9)

Income taxes paid

(3,415)

(3,301)

Net cash flows from operating activities

25,299

24,392

Cash flows from investing activities

Purchase of property, plant and equipment

(30,280)

(18,036)

Investment in intangible assets

(280)

(53)

Deposit interest received

1,607

2,090

Net proceeds from disposal of fixed assets

125

Net cash flows used in investing activities

(28,828)

(15,965)

Cash flows from financing activities

Equity dividends paid

(6,379)

(6,067)

Dividends paid to non-controlling interest

(70)

(170)

Repayment of lease liabilities

(522)

(429)

Net cash flows used in financing activities

(6,971)

(6,666)

Net (decrease)/increase in cash and cash equivalents

(10,500)

1,761

Cash and cash equivalents at the beginning of the year

49,190

47,429

Cash and cash equivalents at the end of the year

38,690

49,190

IAS 7 ‘Statement of Cash Flows’ requires the explanation of both cash and non-cash movements in assets and liabilities relating

to financing activities. See notes 7 and 15. Of the £38.7m cash and cash equivalents at 30 September 2025, £28.0m (FY24: £35.0m)

is on fixed term deposits with an average of 116 days remaining (FY24: 93 days).

The notes on pages 124 to 150 form an integral part of these accounts. The independent auditor’s report is on pages 114 to 118.

124

Jersey Electricity

Annual Report and Accounts 2025

Jersey Electricity

125

Strategy

Governance

Financial statements

Notes to the Consolidated Statements

for the year ended 30 September 2025

1 Accounting policies

Basis of preparation

The Group’s accounting policies as applied for the year ended

30 September 2025 are based on all International Financial

Reporting Standards (IFRS) issued by the International

Accounting Standards Board (IASB) which have been

adopted by the EU, including International Accounting

Standards (IAS) and interpretations issued by the International

Financial Reporting Interpretations Committee (IFRIC). The

principal accounting policies which have been applied

consistently are:

Basis of accounting

The consolidated financial statements have been prepared

under the historic cost convention as modified by the

revaluation of investment properties and derivative

financial instruments.

Basis of consolidation

The Group’s consolidated financial information for the year

ended 30 September 2025 comprises the Company and

its subsidiaries.

The Company’s subsidiaries are the entities over which

the Company has control. Control is determined by the

Company’s power over the investee, its exposure, or rights,

to variable returns and its ability to use its power over the

investee to affect the amount of the returns to the Company.

Non-controlling interests in the net assets of consolidated

subsidiaries are identified separately from the Group’s equity

therein. Non-controlling interests consist of the amount of

those interests at the date of the original business

combination and the non-controlling interest’s share of

changes in equity since the date of the combination.

The consolidated financial information includes the Group’s

share of the post-tax results and net assets under IFRS of

the jointly controlled entities using the equity method of

accounting. Equity accounting is a method of accounting by

which an equity investment is initially recorded at cost and

subsequently adjusted to reflect the investor’s share of the

net profit or loss of the investee. Jointly controlled entities are

those entities over which the Group has joint control with

one or more other parties and over which there must be

unanimous consent by all parties to the strategic, financial,

and operating decisions.

Under Article 105 (11) of the Companies (Jersey) Law 1991

(“the Law”), the Directors of a holding company need not

prepare separate financial statements if consolidated

accounts for the Company are prepared, unless required to

do so by the members of the Company by ordinary resolution.

The members of the Company had not passed a resolution

requiring separate financial statements and, in the opinion

of the Directors, the Company meets the definition of a

holding company as set out in the Law. As permitted by the

Law, the Directors have elected not to prepare separate

financial statements.

Going concern

The Group’s business activities, together with the factors likely

to affect its future development, performance and position

are set out in the Chair’s review (see page 2). The financial

position of the Group, its cash flow and its liquidity position

are described in the Financial review (see pages 62 to 68).

In addition, note 21 to the financial statements includes the

Group’s objectives, policies, and processes for managing

its capital; its financial risk management objectives; details

of its financial instruments and hedging activities; and its

exposures to risks. The Group has sufficient financial resources

together with many customers both corporate and individual.

Therefore, the Directors believe that the Group is well placed

to manage its business risks successfully. The Directors have

a reasonable expectation that the Group has adequate

resources to continue in operational existence for the

foreseeable future. For this reason, they continue to adopt the

going concern basis in preparing the financial statements

and in making the viability statement on page 68.

Foreign currencies

The functional and presentational currency of the Company

is Pounds sterling. Transactions in currencies other than

sterling are recorded at the rates of exchange prevailing on

the dates of the transactions. At each balance sheet date,

monetary assets and liabilities that are denominated in

foreign currencies are translated at the rates prevailing on

the balance sheet date. Non-monetary items carried at

fair value that are denominated in foreign currencies are

translated at the rates prevailing at the date when the fair

value was determined. Non-monetary items that are

measured in terms of historical cost in a foreign currency

are not retranslated. Gains and losses arising on translation

are included in net profit or loss for the year.

Revenue

The Group recognises revenue from the following services:

i) Energy sales

Energy sales revenue is recognised on the basis of energy

sold to customers during the period as well as fixed daily

charges. Revenue from energy sales is therefore accounted

“over time” according to data received from the live smart-

meters. Where meters have a temporary break in

communication, it may include an estimated assessment of

energy supplied to customers during the period of broken

communications, using historical consumption patterns.

Service connections revenue is derived from the provision

of a connection to an existing mains cable, laying required

infrastructure to the boundary of a customer’s property and

connecting to their domestic supply. Management considers

that the combination of these activities comprises a distinct

performance obligation to the customer. Service connection

income is recognised at the point in time that the service

is complete.

Capital contributions arise where a property developer is

charged for the provision of a first-time supply to the

property/properties. These charges cover the immediate

infrastructure requirements as well as future investment

needed to meet the additional demands placed on existing

network infrastructure from new connections. Management

considers that the obligation to invest in the network is

highly interrelated with the ongoing and future obligation to

provide electricity supply services, particularly to maintain

continuous supplies into the future. The investment in the

network from the infrastructure charges enables the Group

to continue providing value to the customer through the

supply of electricity. The associated asset arises from the

investment in the network and therefore the Group recognises

infrastructure income through revenue on a straight-line basis

over the life of the associated asset. Capital contributions

are initially recorded within deferred income and recognised

over the life of the investment to which they relate.

ii) Retail

Revenue resulting from the sales of goods within our retail

business is recognised on sale to the customer at that point

in time, as this is the point at which the Company recognises

the transfer of risks and rewards. Retail additionally sells

service contracts to customers where the obligations to the

customer are recognised as revenue on a monthly basis for

the duration of the service contract.

iii) Building services

Revenue within JEBS, our contracting and building services

business, is recognised as the service is provided. JEBS

recognises the revenue over time driven by the stage of

completion for each contract, which is usually assessed by

reference to costs incurred over the same period.

iv) Property

Rental income is accrued monthly on a straight-line basis

over the term of the rental agreement.

v) Other

IRU

Indefeasible rights of use (IRU) sales are recognised as the

service is provided over the term of the contract.

Through Jersey Electricity’s interest in submarine cables, the

Group has the ability to sell dark fibre to telecom network

operators seeking to extend their own networks through

IRU agreements. Income from IRUs where an IRU agreement

does not transfer substantially all the risks and benefits

of ownership to the buyer or is deemed not to extend

for substantially all of the assets’ expected useful lives,

is recognised on a straight-line basis over the life of the

agreement. Where agreements extend for substantially all

the assets’ expected useful lives and transfer substantially

all the risks and benefits of ownership to the buyer, the

resulting profit/ (loss) is recognised in the consolidated

income statement as a gain/(loss) on disposal of fixed assets.

Jendev

Revenue from Jendev arises from ongoing support contracts

and implementation and development contracts. Revenue

from ongoing support contracts is recognised on a straight-

line basis over the term of the contract. Revenue from

implementation and development contracts is recognised

based on the stage of completion for each contract driven

by the cost of work performed.

Jersey Deep Freeze

Jersey Deep Freeze is a 56% (FY24: 51%) controlled subsidiary.

Revenues are derived from the provision of goods and

service contracts. Revenue from the provision of goods is

recognised at point of delivery to the customer. Revenue

from service contracts is recognised on a straight-line basis

over the term of the contract.

vi) Interest free financing

Both retail customers and those wishing to fuel switch to

electric heating can qualify for interest free credit terms.

Where financing is provided, repayment terms are typically

up to five years. As such a deemed interest charge is

calculated on an annual basis and offset against revenue.

Taxation

The tax expense represents the sum of tax currently payable

and deferred tax. The tax currently payable is based on

taxable profit for the year. Taxable profit differs from net profit

as reported in the income statement because it excludes

items of income or expense that are taxable or deductible in

other years and it further excludes items that are not taxable

or deductible.

Deferred tax is the tax expected to be payable or recoverable

on the difference between the carrying amounts of assets

and liabilities in the balance sheet and the corresponding tax

bases used in the computation of taxable profits. Deferred

tax is accounted for using the balance sheet liability

method. Deferred tax liabilities are recognised for all

taxable temporary differences and deferred tax assets are

recognised to the extent that it is probable that future

taxable profit will be available against which deductible

temporary differences can be utilised.

Deferred tax is calculated at the tax rates that are expected

to apply in the period in which the liability is settled or the

asset is realised, on a non-discounted basis, and is recorded

in the income statement, except where it relates to items

recorded to equity via other comprehensive income, in which

case the deferred tax is also dealt with in that statement.

126

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Notes to the Consolidated Statements

(continued)

1 Accounting Policies

(continued)

Strategy

Governance

Financial statements

Intangible assets

The costs of acquired computer software are capitalised

based on the costs incurred to acquire and bring to use the

specific software and are amortised over their useful lives.

Costs directly associated with the development of computer

software programmes that will generate economic benefits

over a period in excess of one year are capitalised and

amortised over their estimated useful lives. Costs include

employee costs relating to software development and an

appropriate proportion of directly attributable overheads.

Amortisation is charged on a straight-line basis over its

expected useful life which is estimated to be up to four years.

Property, plant and equipment

Property, plant and equipment (“PPE”) excludes investment

property and is stated at cost less accumulated depreciation

and impairment losses.

For assets under construction, all costs incurred which are

directly attributable to bringing the asset into use, including

direct materials and labour costs are capitalised as incurred.

Assets are depreciated on the straight-line method to their

expected residual values over their estimated useful lives.

Property, plant and equipment under the course of

construction is not depreciated until it is commissioned.

Owner-occupied property is classified within PPE.

Depreciation is charged as follows:

Buildings	Up to 50 years
Plant, mains cables and services	Up to 60 years
Interlinks	Up to 30 years
Other, which includes:
Fixtures and fittings	Up to 15 years
Vehicles	Up to 10 years
Computer equipment	Up to 4 years

The gain or loss arising on the disposal or retirement of an

asset is determined as the difference between the sales

proceeds and the carrying amount of the asset and is

recognised in the consolidated income statement.

Customer contributions in respect of additions to plant are

treated as deferred income within trade and other payables

which is classified between current and non-current

liabilities and released to the income statement over the

estimated operational lives of the related assets.

Right of use assets

Right-of-use assets are measured at cost, less any

accumulated depreciation and impairment losses, and

adjusted for any remeasurement of lease liabilities. The cost

of right of use assets includes the amount of lease liabilities

recognised, initial direct costs incurred, and lease payments

made at or before the commencement date less any lease

incentives received and an estimate of costs expected to

be incurred to dismantle and remove the underlying asset,

and restoring the site or asset to its original condition under

the terms of the lease. Where a modification to a lease

agreement decreases the scope of the lease, the carrying

amount of the right of use asset is adjusted and a gain or

loss is recognised in proportion to the decrease in scope of

the lease. All other modifications to lease agreements are

accounted for as a reassessment of the lease liability with

a corresponding adjustment to the right of use asset.

Impairment of property, plant, equipment

and intangible assets

At the end of each reporting period, the Group reviews

the carrying amounts of its PPE and intangible assets to

determine whether there is any indication that those assets

have suffered an impairment loss. If any such indication

exists, the recoverable amount of the asset is estimated in

order to determine the extent of the impairment loss (if any).

When it is not possible to estimate the recoverable amount

of an individual asset, the Group estimates the recoverable

amount of the cash-generating unit to which the asset

belongs. When a reasonable and consistent basis of

allocation can be identified, assets are also allocated to

individual cash-generating units, or otherwise they are

allocated to the smallest group of cash-generating units

for which a reasonable and consistent allocation basis can

be identified.

The recoverable amount is the higher of fair value less costs

of disposal and value in use. In assessing value in use, the

estimated future cash flows are discounted to their present

value using a pre-tax discount rate that reflects current

market assessments of the time value of money and the risks

specific to the asset for which the estimates of future cash

flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating

unit) is estimated to be less than its carrying amount, the

carrying amount of the asset (or cash-generating unit) is

reduced to its recoverable amount.

Where an impairment loss subsequently reverses, the

carrying amount of the asset (or cash-generating unit) is

increased to the revised estimate of its recoverable amount,

so that the increased carrying amount does not exceed the

carrying amount that would have been determined had no

impairment loss been recognised for the asset (or cash-

generating unit) in prior years. A reversal of an impairment

loss is recognised immediately in the consolidated income

statement, unless the relevant asset is carried at a revalued

amount, in which case the reversal of the impairment loss is

stated as a revaluation increase.

Investment properties

Investment properties are stated at fair value at the

balance sheet date. Gains or losses arising from changes

in the fair value of investment properties are included in the

consolidated income statement for the period in which they

arise. The Group’s policy on freehold properties is to classify

it as an investment property both when the property is held

for capital appreciation or rental purposes and when it is

fully occupied by external tenants.

Investment in joint arrangement

The results, assets and liabilities of the joint arrangement are

incorporated using the equity method. Investment in the

joint arrangement is therefore carried in the consolidated

balance sheet at cost as adjusted by changes in the Group’s

share of net assets, less any impairment.

Inventories

Inventories are stated at the lower of cost and net realisable

value. Cost comprises direct materials and, where applicable,

direct labour and overheads that have been incurred in

bringing the inventories to their location and condition at year

end. Cost is calculated using the weighted average method.

The net realisable value represents the estimated selling price.

Financial instruments

Cash and cash equivalents

Cash and cash equivalents comprise cash and short-term

deposits with an original maturity of three months or less.

Short-term investments

Short-term investments comprise cash deposits which are

readily convertible to a known amount of cash, subject to

an insignificant risk of change in value.

Trade and other receivables

Trade receivables are initially recognised at invoice value

which is deemed to be fair value and do not carry any

interest and are reduced by appropriate allowances for

estimated irrecoverable amounts.

The Group applies the IFRS 9 simplified approach to

measuring expected credit losses which uses a lifetime

expected loss allowance for all trade receivables. The Group’s

assessment for calculating expected credit losses is made

by reference to its historical collection experience, including

comparisons of the relative age of the individual balance

and the consideration of the actual write-off history. The

provisioning rates applied in the calculation are reviewed

on an annual basis to reflect the latest historical collection

performance data and management’s expectation of future

performance and industry trends. Furthermore, where the

Group has assessed a known risk of recoverability relating

to known customers these balances are provided for in full.

Trade and other payables

Trade and other payables are initially recognised at invoice

value which is deemed to be fair value and are not interest

bearing and are subsequently stated at their amortised cost.

Amortised cost is considered by the Directors to be equivalent

to invoiced value.

Borrowings

Borrowings are measured at amortised cost using the

effective interest method. Interest expense is recognised

by applying the effective interest rate.

Derivative financial instruments

Derivatives are initially recognised at fair value at the date

a derivative contract is entered into and are subsequently

remeasured to their fair value at each balance sheet date.

Changes in the fair value of derivative financial instruments

which are designated as highly effective hedges of future

cash flows are recognised directly in other comprehensive

income and any ineffective portion is recognised immediately

in the consolidated income statement. When hedges mature

that do not result in the recognition of an asset or a liability,

amounts deferred in other comprehensive income are

recognised in the consolidated income statement in the same

period in which the hedged item affects net profit or loss.

Changes in the fair value of derivative financial instruments

that do not qualify for hedge accounting are recognised in

the consolidated income statement as they arise.

Hedge accounting is discontinued when the hedging

instrument expires or is sold, terminated or exercised, or no

longer qualifies for hedge accounting. Until that time, any

cumulative gain or loss on the hedging instrument recognised

in other comprehensive income is kept in equity until the

forecasted transaction occurs. If a hedged transaction is

no longer expected to occur, the net cumulative gain or loss

that has been recognised in other comprehensive income is

transferred to the consolidated income statement.

Following the adoption of IFRS 9 and as permitted by this

standard, the Group has elected to continue to apply the

hedge accounting requirements of IAS 39. This policy choice

will be periodically reviewed to consider any changes in our

risk management activities.

Notes to the Consolidated Statements

(continued)

1 Accounting Policies

(continued)

Borrowing costs

Borrowing costs directly attributable to the acquisition,

construction or production of qualifying assets, which are

assets that necessarily take a substantial period of time to

get ready for their intended use or sale, are added to the cost

of those assets, until such time as the assets are substantially

ready for their intended use or sale. Investment income

earned on the temporary investment of specific borrowings

pending their expenditure on qualifying assets is deducted

from the borrowing costs eligible for capitalisation. All other

borrowing costs are recognised in the consolidated income

statement in the period in which they occurred.

Dividends

Dividends are recorded in the Group’s financial statements

in the period in which they are approved by the Company’s

shareholders. Interim dividends are recorded in the period

in which they are paid.

Share capital

Ordinary shares are classified as equity. Mandatorily

redeemable preference shares are classified as liabilities.

Incremental costs directly attributable to the issue of new

shares or options are shown as a deduction, net of tax, from

the proceeds.

Provisions

Provisions are recognised when the Group has a present

obligation (legal or constructive) as a result of a past event,

and where it is probable that an outflow of resources

embodying economic benefits will be required to settle

the obligation and a reliable estimate can be made of the

amount of the obligation. Provisions are reviewed at each

balance sheet date and are adjusted to reflect the current

best estimate. Provisions are included within Trade and

other payables.

Retirement benefits

The Company provides pensions through both a defined

contributions scheme and a defined benefit scheme. In the

latter the cost of providing benefits is determined using the

projected unit credit method, with full actuarial valuations

being carried out at a minimum every three years. Actuarial

gains and losses are recognised in full, directly in retained

earnings in the period in which they occur and are shown

in the statement of comprehensive income. The net figure

derived from the current service cost element of the pension

charge, the expected return on pension scheme assets and

interest on pension scheme liabilities, including past service

cost, is deducted in arriving at operating profit. Retirement

benefits recorded in the balance sheet represent the

net financial position of the Group’s defined benefit

pension scheme.

Under the Scheme regulations, following settlement of the

final obligation by the Trust, any remaining surplus held by

the fund would be passed back to the Company.

Share-based payments

Equity-settled share-based payments to employees and

others providing similar services are measured at fair value

of the equity instruments at the grant date. The fair value

excludes the effect of non-market-based vesting conditions.

Details regarding the determination of the fair value of

equity-settled share-based transactions are not separately

disclosed due to their immaterial value.

The fair value determined at the grant date of the equity-

settled share-based payments is expensed over the vesting

period, based on the Group’s estimate of equity instruments

that will eventually vest. At each balance sheet date, the

Group revises its estimate of the number of equity instruments

expected to vest because of the effect of non-market-based

vesting conditions. The impact of the revision of the original

estimates, if any, is recognised in the income statement such

that the cumulative expense reflects the revised estimate,

with a corresponding adjustment to equity reserves.

Accounting developments

In preparing these Consolidated Financial Statements, the

Group has applied all relevant IFRS, IAS and Interpretations

issued by the IFRIC which have been adopted by the EU

as of the date of approval of these Consolidated Financial

Statements. The following new accounting standards,

amendments to existing accounting standards and/or

interpretations of existing accounting standards are

mandatory for the current period and have been adopted by

the Group. All other new standards, amendments to existing

standards and new interpretations that are mandatory for

the current year have no bearing on the operating activities

and disclosures of the Group and consequently have not

been listed. The Group has not adopted any new standards

or interpretations that are not mandatory.

New standards, amendments and interpretations

effective or adopted by the Group

Amendment to IAS 1 – ‘Non-current liabilities with covenants’

became effective from 1 January 2024 (1 October 2024 for

the Group). The revised standard sets conditions to the

classification of current versus non-current liabilities were

covenants are in place. The covenant terms relating to

the Group’s loan of £30m are already disclosed in note 15.

The amendment to the Standard does not change disclosures

related to this loan.

Amendment to IAS 7 and IFRS 7 – ‘Supplier finance’

also

became effective from 1 January 2024 (1 October 2024

for the Group) and requires disclosures to enhance the

transparency of supplier finance arrangements and their

effects on an entity’s liabilities, cash flows and exposure to

liquidity risk. It was ascertained that the Group does not

have any financing agreements that meet the scope of

these amendments.

New standards, amendments and interpretations

issued, but not yet adopted by the Group

A number of standards, amendments and interpretations

have been issued but not yet adopted by the Group within

these financial statements, because application is not yet

mandatory or because EU adoption remains outstanding

at the date the financial statements were authorised for

issue, including:

IFRS 18, ‘Presentation and Disclosure in Financial Statements’

was published in April 2024 and is scheduled to take effect

from 1 January 2027 (or 1 October 2027 for the Group), subject

to EU endorsement. This new standard will replace IAS 1,

‘Presentation of Financial Statements’. It does not change

recognition or measurement principles, so the Group’s

financial results will remain unaffected. However, it will alter

how the consolidated financial statements are presented,

particularly the Consolidated Income Statement.

Amendments to

IFRS 9, ‘Financial Instruments’, and IFRS 7,

‘Financial Instruments: Disclosures’

, have also been issued,

addressing classification and measurement of financial

instruments. A further amendment relates to contracts

referencing nature-dependent electricity. These changes will

apply from 1 January 2026 (or 1 October 2026 for the Group).

While the assessment of these amendments is ongoing, they

are not expected to have a material impact on the Group’s

consolidated financial statements

2 Critical accounting judgements and key sources of estimation uncertainty

In the application of the Group’s accounting policies, which

are described in note 1, the Directors are required to make

judgements, estimates and assumptions about the carrying

amounts of assets and liabilities that are not readily

apparent from other sources. The estimates and associated

assumptions are based on historical experience and other

factors that are considered to be relevant. Actual results

may differ from these estimates.

The estimates and underlying assumptions are monitored

on an ongoing basis. Changes to accounting estimates are

recognised in the period in which an estimate is revised if

the modification affects only that period (or also in future

periods if applicable).

Critical accounting judgements

The following are the critical judgements, that the Directors

have made in the process of applying the Group’s accounting

policies and are considered to have a significant effect on

the amounts recognised in financial statements.

i) Hedge accounting

The Group utilises currency derivatives to hedge a proportion

of its future purchases of electricity from France which

currently extend to the next three calendar years. Judgement

is applied in establishing the quantum of these future

foreign exchange commitments as the volume and price

of imported electricity vary annually. All such currency

derivatives are fair valued, based on market values of

equivalent instruments at the balance sheet date.

ii) Decommissioning

A judgement has been made that the Company does not

meet the recognition criteria (set out in IAS 37 Provisions) as it

does not have any set obligation to decommission any of our

material assets, but a risk exists that costs may be incurred in

the future. The assets concerned are our power station at

La Collette, which is leasehold with a current end date of

2056, and our submarine cables to France and Guernsey.

None of the assets have a definitive planning or legal

obligation to decommission at the end of life but obligations

could develop over time, for example, for environmental

reasons. There are varying external opinions as to whether

subsea cables should be left in place, or removed, at the

end of their useful life as over time the interconnector asset

becomes part of the marine infrastructure.

iii) Impairment testing and valuation

The Group reviews the carrying amounts of various non-

current assets included within property, plant and equipment

and intangible assets to determine whether any impairments

need to be recognised against their carrying value in

accordance with IAS 36, impairments of assets. Where an

indicator of impairment or impairment reversal exits, a review

of financial outcomes and probability is used to inform the

appropriate carrying value of the impaired asset.

Key sources of estimation uncertainty

The key assumptions concerning the future, and other key

sources of estimation and uncertainty at the reporting

date that may have a significant risk of causing a material

adjustment to the carrying amounts of assets and liabilities

within the next financial year are disclosed below.

Retirement benefit obligations

The Group provides pensions through a defined benefits

scheme for a number of its employees which is accounted for

in accordance with IAS 19 ‘Employee Benefits’. The benefit

obligation is discounted at a rate set by reference to market

yields at the end of the reporting period on high quality

corporate bonds. Significant judgement is required when

setting the criteria for bonds to be included in the population

from which the yield curve is derived. The most significant

criteria considered for the selection of bonds include the

issue size of the corporate bonds, quality of the bonds and

the identification of outliers which are excluded. The discount

rate used in 2025 was 5.9% (FY24: 5.1%).

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Strategy

Governance

Financial statements

Notes to the Consolidated Statements

(continued)

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Strategy

Governance

Financial statements

3 Business segments

The business segments below are those reported to the Directors for the purposes of resource allocation and

performance assessment:

	2025	2025	2025	2024	2024	2024
	External	Internal	Total	External	Internal	Total
	£000	£000	£000	£000	£000	£000
Revenue
Energy	118,383	99	118,482	108,102	100	108,202
Building Services	3,767	966	4,733	3,872	936	4,808
Retail	18,076	46	18,122	17,767	110	17,877
Property	2,463	837	3,300	2,346	639	2,985
Other *	3,507	54	3,561	3,655	112	3,767
	146,196	2,002	148,198	135,742	1,897	137,639
Intergroup elimination			(2,002)			(1,897)
			146,196			135,742
Operating profit
Energy			12,731			13,020
Building Services			–			248
Retail			257			618
Property			1,342			931
Other 1			447			442
			14,777			15,259
Revaluation of investment properties			(895)			(890)
Operating profit			13,882			14,369
Finance income			1,883			2,291
Finance costs			(1,575)			(1,533)
Profit from operations before taxation			14,190			15,127
Taxation			(3,126)			(3,427)
Profit from operations after taxation			11,064			11,700
Attributable to:
Owners of the Company			11,000			11,618
Non-controlling interests			64			82
			11,064			11,700

The Other segment includes the divisions of Jersey Energy and Jendev, operating profit from IRU contracts as well as Jersey Deep Freeze Limited, the

Group’s sole subsidiary.

Materially, all the Group’s operations are conducted within the Channel Islands. All transfers between divisions are on an

arms-length basis. 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 for each of these business segments in note 1 to

these financial statements.

4 Directors and employees

Detailed information in respect of Directors’ shareholdings and emoluments, pensions and benefits is given in the Remuneration

Committee Report on pages 108 to 111. The number of persons (full time equivalents (‘FTEs’) employed by the Company at

30 September was as follows:

	2025	2024
	Number	Number
Energy	282	271
Other businesses	89	91
Trainees	14	16
	385	378

The aggregate payroll costs of these persons were as follows:

	2025	2024
	£000	£000
Wages and salaries	26,493	24,496
Social security costs	1,478	1,366
Pension 1	225	32
Past Service Cost (note 17)	3,039	–
	31,235	25,894
Capitalised manpower costs 2	(3,402)	(2,605)
	27,833	23,289

The pension costs above relate to the defined benefit pension scheme note 16. The contributions recognised as an expense relating to the defined contribution

scheme are included within wages and salaries and amount to £1.4m (2024 £1.2m).

Capitalised manpower costs as described in note 1 are those employee costs attributable to bringing assets (PPE and intangibles) into use, see note 9 and 10.

5 Group operating profit

Operating profit is after charging:

	2025	2024
	£000	£000
Fees payable to Group auditor
Auditor’s remuneration for audit services	443	430
Auditor’s remuneration for non-audit services	–	–
Other operating charges
Depreciation of property, plant and equipment and right-of-use assets (note 10)	11,379	11,691
Amortisation of intangible assets (note 9)	417	370
Movement in expected credit losses	371	268
Impairment of property, plant and equipment	–	2,120

Notes to the Consolidated Statements

(continued)

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133

Strategy

Governance

Financial statements

6 Taxation

	2025	2024
	£000	£000
Current tax:
Jersey Income Tax - ordinary activities	2,907	3,414
Total current tax	2,907	3,414
Deferred tax:
Current year	219	13
Total tax on profit on ordinary activities	3,126	3,427

The differences between the total tax charge shown above and the amount calculated by applying the standard rate of

Jersey Income Tax to the profit before tax is as follows:

	2025	2024
	£000	£000
Profit from ordinary activities before tax	14,190	15,127
Tax on profit on ordinary activities at standard income tax rate of 20% (2021: 20%)	2,838	3,025
Effects of:
Expenses not deductible for tax purposes	105	185
Income not taxable for tax purposes	(114)	(110)
Profit of Group undertaking not available for tax	(29)	(32)
Non-qualifying depreciation	326	359
Group current tax charge for year	3,126	3,427

The following outlines the major deferred tax (assets)/liabilities recognised by the Group and Company:

	2025	2024
	£000	£000
Group and Company
Accelerated capital allowances	26,711	26,143
Derivative financial instruments	123	(810)
Pensions	5,451	5,590
Provisions for deferred tax	32,285	30,923

Deferred tax movements in the year:

	2025	2024
	£000	£000
Group and Company
At 1 October	30,923	31,422
Charged to profit and loss account	219	13
(Credited)/charged to statement of comprehensive income	1,143	(512)
At 30 September	32,285	30,923

The Company is taxed solely in Jersey as it has no legal presence in any other jurisdiction. The applicable rate of income tax

for utility companies in Jersey is 20%. There are no current indications, political or otherwise, that these rates are expected to

change in the foreseeable future. The effective tax rate on pre-tax profits is 22% (FY24: 23%) due to the way capital allowances

are applied in place of depreciation expenses which are included in the pre-tax profit figure. As the tax liability rests with

the Government of Jersey, the right to offset assets and liabilities allows the balance sheet to show the net deferred tax

liability position.

There is no tax impact on the Group arising from the proposed dividend shown in note 7.

7 Dividends paid and proposed

Equity:

	Per share		In Total
	2025	2024	2025	2024
	pence	pence	£000	£000
Ordinary and ‘A’ Ordinary:
Dividend paid - final for previous year	12.00	11.40	3,677	3,493
- interim for current year	8.82	8.40	2,702	2,574
	20.82	19.80	6,379	6,067
Dividend proposed final for current year	12.60	12.00	3,861	3,677

The proposed dividend is subject to approval at the forthcoming AGM and has not been included as liabilities in these financial

statements. These dividends are shown net of 20% tax.

Dividends paid out to non-controlling interests in relation to Jersey Deep Freeze Limited are disclosed in note 18.

8 Earnings per Ordinary share

Earnings per Ordinary and ‘A’ Ordinary share (basic and diluted) of 35.90p (FY24: 37.92p) are calculated on the Group profit

attributable to the owners of the Company, after taxation, of £11.0m (FY24: £11.6m), and on the 30,640,000 (FY24: 30,640,000)

Ordinary and ‘A’ Ordinary shares in issue during the financial year and at 30 September 2025. There are no share options in

issue nor any impact arising from the vesting of the employee share option scheme and therefore there is no difference between

basic and diluted earnings per share.

9 Intangible assets

	Computer Software
	£000
Cost
Cost as at 1 October 2024	2,761
Additions	280
Disposals	–
At 30 September 2025	3,041
Amortisation
At 1 October 2024	2,397
Charge for the year	417
Disposals	–
At 30 September 2025	2,814
Net book value
At 30 September 2025	227

	Computer Software
	£000
Cost
Cost as at 1 October 2023	2,770
Additions	53
Disposals	(62)
At 30 September 2024	2,761
Amortisation
At 1 October 2023	2,089
Charge for the year	370
Disposals	(62)
At 30 September 2024	2,397
Net book value
At 30 September 2024	364

The above amortisation charges are included within operating expenses in the consolidated income statement.

The gross carrying amount of intangible assets with a net book value of zero at 30 September 2025 was £2.8m (FY24: £1.7m).

134

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Governance

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Notes to the Consolidated Statements

(continued)

10 Property, plant, equipment, right of use assets and investment properties

	Freehold			Mains			Assets		Right
	Land and	Leasehold		Cables and			Under		of Use	Investment
	Buildings	Buildings	Plant	Services	Other	Interlinks	Construction	Total	Assets	Properties
	£000	£000	£000	£000	£000	£000	£000	£000	£000	£000
Cost or valuation
At 1 October 2024	38,368	18,130	121,869	130,065	15,371	98,307	13,050	435,160	5,218	26,725
Additions	–	–	–	–	26	–	29,208	29,234	578	–
Revaluation	–	–	–	–	–	–	–	–	177	(895)
Movement in end-of-
lease provisions	–	–	–	–	–	–	–	–	317	–
Reclassification	356	268	8,935	10,592	3,183	120	(23,454)	–	–	–
Reclassification intangible	–	–	–	–	–	–	(280)	(280)	–	–
Disposals	–	–	(119)	–	(348)	(36)	–	(503)	–	–
At 30 September 2025	38,724	18,398	130,686	140,657	18,232	98,391	18,524	463,611	6,290	25,830
Depreciation
At 1 October 2024	14,142	9,305	81,173	48,848	8,853	47,315	–	209,636	597	–
Charge for the year	775	426	3,246	2,681	1,114	2,771	–	11,013	391	–
Reclassification	–	–	(614)	–	614	–	–	–	–	–
Disposals	(1)	(1)	(99)	(2)	(322)	(10)	–	(435)	–	–
Impairment	–	–	–	–	–	–	–	–	–	–
At 30 September 2025	14,916	9,730	83,705	51,527	10,259	50,076	–	220,213	988	–
Net book value at
30 September 2025	23,808	8,668	46,980	89,130	7,973	48,315	18,524	243,398	5,302	25,830

	Freehold			Mains			Assets		Right
	Land and	Leasehold		Cables and			Under		of Use	Investment
	Buildings	Buildings	Plant	Services	Other	Interlinks	Construction	Total	Assets	Properties
	£000	£000	£000	£000	£000	£000	£000	£000	£000	£000
Cost or valuation
At 1 October 2023	38,016	18,130	121,319	111,403	25,392	98,288	–	412,548	3,655	27,615
Additions	352	–	2,178	5,719	1,779	19	13,050	23,097	1,563	–
Revaluation	–	–	–	–	–	–	–	–	–	(890)
Reclassification 1	–	–	(1,628)	12,943	(11,315)	–	–	–	–	–
Disposals	–	–	–	–	(485)	–	–	(485)	–	–
At 30 September 2024	38,368	18,130	121,869	130,065	15,371	98,307	13,050	435,160	5,218	26,725
Depreciation
At 1 October 2023	13,369	8,878	77,197	38,789	15,488	42,691	–	196,412	461	–
Charge for the year	773	427	3,798	1,638	1,800	3,119	–	11,555	136	–
Reclassification 1	–	–	(436)	8,421	(7,985)	–	–	–	–	–
Disposals	–	–	–	–	(450)	–	–	(450)	–	–
Impairment 2			614			1,506		2,120
At 30 September 2024	14,142	9,305	81,173	48,848	8,853	47,316	–	209,637	597	–
Net book value at
30 September 2024	24,226	8,825	40,696	81,217	6,518	50,991	13,050	225,523	4,621	26,725

A review of asset classifications was undertaken during the period and assets with a net book value of £4.7m, being cost of £12.9m net of depreciation of

£8.4m, have been reclassified from the classes of ‘Other’ and ‘Plant’ to ‘Mains Cables and Services’. The change was mainly related to the Metering asset class.

Impairments during the prior year include £1.5m against N2 (the oldest of the subsea cables connecting France and Jersey), which is planned for

replacement as part of the Group’s capital investment programme

The consideration of climate change and its impact on property, plant and equipment has been considered and no impairment

is deemed necessary.

Property, plant and equipment

Depreciation is included in operating costs in the consolidated income statement. No depreciation is charged on freehold

land. The gross carrying amount of property, plant and equipment still in use with a net book value of zero at 30 September

2025 was £81.7m (FY24: £75.2m).

Right of Use assets

The Group leases land and buildings as part of its Energy business, classified as right of use assets. In addition to the depreciation

expense relating to right of use assets of £366k (FY24: £136k), the finance costs included in the consolidated income statement

arising from the lease liability was £160k (FY24: £155k). The maturity analysis of lease liabilities is presented in note 15.

Of the £5.3m (FY24: £4.6m) right of use assets, £0.8m (FY24: £0.5m) relates to provisions provided for to meet future obligations

to dismantle equipment and restore leased premises to their original condition under the terms of the leases.

Investment properties

Investment properties are made up of a portfolio of commercial and residential properties.

Two commercial leases are held with B&Q and The Medical Centre. The B&Q lease is a fully repairing lease with a 48-year term

from May 2000 and a tenant-only break option, which in March 2021 deferred to May 2038. A variation of the 2005, 51 year

lease for the Medical Centre was signed in December 2023 which waived the previous break options, with the next available

break option date being May 2035. The Company is obliged to keep the Medical Centre wind, watertight and structurally

sound, whilst no obligations exist to the Company with regards to the B&Q lease which is fully repairing.

The residential properties comprise 29 units which are let out on licences or leases with terms no greater than one year.

The investment properties were valued as at 30 September 2025 by independent professionally qualified valuers who hold

a recognised relevant professional qualification and are based in Jersey with knowledge of the local market. The properties

are held for investment purposes, primarily in freehold ownership and thus the valuation is of the freehold interests based on

market value, in accordance with the latest edition of the Royal Institution of Chartered Surveyors (RICS) Valuation – Global

Standards, January 2022 (the “Red Book”). Market value is defined in the Red Book as “The estimated amount for which an asset

or liability should exchange on the valuation date between a willing buyer and a willing seller in an arm’s length transaction

after proper marketing and where the parties had each acted knowledgeably, prudently and without compulsion. At each

financial year-end the finance department verifies major inputs to the independent valuation report, assesses property

valuation movements and holds discussions with the independent valuer.

Commercial properties have been valued on a basis of

Net Initial Yield of 7.19% and a Reversionary Yield of 6.63% based on

our Headline Rent / ERV assessment of the Property for the B&Q site. Health plus has been valued on a basis Net Initial Yield

of 7.20% (on Net passing rent) a Reversionary Yield of 7.92% (on Net anticipated rent as at the 16/05/26 rent review) and a

Reversionary Yield of 7.42% on the Net ERV of the Property. If yields were 50 basis points higher, the valuation of commercial

properties would decrease by £0.9m. If yields were 50 basis points lower, the valuation of commercial properties would

increase by £1.2m.

Movement in valuation of investment properties

	2025	2024
	£000	£000
At 1 October	26,725	27,615
Revaluation	(895)	(890)
At 30 September	25,830	26,725

In the case of residential properties, the valuation is based on market value assuming vacant possession. The valuation is based

on the comparable method, by reference to recent local market transactions of similar properties and is therefore deemed

to be of level 2 fair value.

The rental income arising from commercial properties during the year was £1.8m (FY24: £1.5m) with maintenance and repair

costs of £331k (FY24: £339k). Under the terms of the lease arrangements with residential tenants, the Company is obliged to

keep the rented premises in a good state of condition and repair.

In accordance with IAS40 investment properties are not depreciated. The minimum lease payments receivable are detailed

in note 21.

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Financial statements

Notes to the Consolidated Statements

(continued)

11 Other investments

	2025	2024
	£000	£000
Joint arrangement	5	5

Principal Group investments

The Company has investments in the following subsidiary undertakings and joint arrangement which principally affected the

profits or net assets of the Group.

Joint arrangement:

	Country of incorporation
	or principal business	Principal activity	Shareholding	% Holding	Year End
Joint arrangement:
Channel Islands Electricity Grid Limited	Jersey	Administration of cable	5,000 Ordinary	50	30 November
		links between France,
		Jersey and Guernsey
Subsidiary undertaking:
Jersey Deep Freeze Limited	Jersey	Sale and maintenance	56 Ordinary	56	30 September
		of refrigeration and
		catering equipment
Jersey Offshore Wind Limited	Jersey	Investment in offshore wind	2 Ordinary	100	30 September
		(electricity generation) projects

Channel Islands Electricity Grid Limited (CIEG)

CIEG is a 50%/50% joint venture between Jersey Electricity Plc and Guernsey Electricity Limited. The principal activity of the

business is to administer the ongoing operations of the cable links between France, Jersey and Guernsey.

The Company’s interest in CIEG is accounted for as a joint arrangement under IFRS 11 ‘Joint arrangements’.

Jersey Deep Freeze Limited

The Company owns 56% (FY24: 51%) of the issued Ordinary share capital of Jersey Deep Freeze Limited, a Jersey company

whose principal business is the sale and maintenance of refrigeration equipment to commercial businesses.

The results are consolidated into these Group financial statements, as the Group is considered to exert control under IFRS 10.

Jersey Offshore Wind Limited

This wholly owned subsidiary was incorporated on 29 March 2023. The entity was set up in support to JE’s exploration of

offshore wind.

12 Inventories

The amounts attributed to the different categories within inventories are as follows:

	2025	2024
	£000	£000
Fuel oil	3,081	3,618
Commercial stocks and work in progress	3,347	3,288
Generation, distribution spares and sundry	1,488	1,529
	7,916	8,435

During the year £14.8m (FY24: £14.6m) was recognised directly in cost of sales in respect of inventories sold or used in operations

or production.

13 Trade and other receivables

	2025	2024
	£000	£000
Amounts receivable within one year:
Trade receivables	21,624	21,528
Prepayments and other receivables	3,548	3,374
	25,172	24,902
Amounts receivable after more than one year:
Secured loan accounts	300	300

Included within trade receivables is £3.3m (FY24: £2.7m) that will be due and received in more than 12 months from the balance

sheet date.

These amounts represent receipts or payments from customers relating to hire purchase agreements that are within the normal

operating cycle of the Company.

Unbilled revenues included within trade and other receivables at 30 September 2025 are £7.5m (FY24: £7.3m).

The secured loans comprise a loan to a Director.

The fair value of trade and other receivables is considered by the Directors to be equivalent to its carrying value.

14 Trade and other payables

	2025	2024
	£000	£000
Amounts falling due within one year:
Trade payables	1,315	2,402
Other payables including taxation and social security	9,113	8,440
Accruals	10,687	11,029
Deferred revenue	1,092	1,156
	22,207	23,027
Amounts falling due after one year:
Accruals	885	628
Deferred revenue	27,437	26,594
	28,322	27,222

The fair value of trade and other payables is considered by the Directors to be equivalent to its carrying value.

15 Borrowings

	2025	2024
	£000	£000
Unsecured borrowing at amortised cost
Loan obtained from private placement	30,000	30,000

A long-term loan of £30m was drawn down on 17 July 2014 via a private placement and is in place with Pricoa Capital Group

(an affiliate of Prudential Financial, Inc). The loan consists of two tranches:

£15m for 20 years at a fixed rate coupon of 4.41%

£15m for 25 years at a fixed rate coupon of 4.52%

The terms of the loan contain financial covenants which require a net debt to regulated asset value ratio of less than 50%

and an EBITDA to borrowings cost ratio greater than 4, as defined in the loan agreement. The calculations are carried out

based on the Group’s interim and annual performance and position. The Group continues to meet these covenants.

Until July 2024, borrowings were supplemented by an unsecured five year £10m revolving credit facility (RCF) with the Royal Bank

of Scotland International Limited (RBSI). The facility was renewed in August 2025 for a further two year period. This facility

continues to bear the same financial covenant restrictions as the private placement above.

A one year £2m overdraft facility also exists with RBSI, which renews annually.

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Financial statements

Notes to the Consolidated Statements

(continued)

15 Borrowings

(continued)

Lease liabilities

	2025	2024
	£000	£000
At 1 October	4,184	3,274
Additions during the year	575	1,023
Revaluations	177	-
Unwind of discount	203	316
Repayment in the year	(522)	(429)
As at 30 September:	4,617	4,184
– Current	339	306
– Non-current	4,278	3,878
	4,617	4,184

Right of use assets recognised under lease arrangements are detailed within note 10.

The maturity of future lease liabilities are as follows:

	2025	2024
	£000	£000
Payable within one year	547	492
After one year but within five years	1,619	1,475
After five years but within ten years	1,353	1,203
After ten years	7,148	5,401
	10,667	8,571
Less: future finance charge	(6,050)	(4,387)
Present value of lease obligations	4,617	4,184

The fair value of the loan obtained from the private placement at 30 September 2025 is considered to be £25.0m (FY24: £26.3m)

based on the interest rate offered by UK 15 and 20 year bonds as a proxy to the risk free rate at this date coupled with the

deemed credit risk margin included within the overall rate at the inception of the loan. The loan is classified as level 2 in the

fair value hierarchy.

16 Pensions

Introduction

The Company sponsors a funded defined benefit pension scheme for qualifying Jersey employees – the Jersey Electricity

Pension Scheme. The Scheme is administered by a separate board of trustees, which is legally separate from the Company.

The trustees are composed of representatives of both the employer and employees. The trustees are required by law to act

in the interest of all relevant beneficiaries and are responsible for the investment policy for the assets and the day-to-day

administration of the benefits.

Under the Scheme, employees are entitled to annual pensions on retirement at age 65 of one sixtieth or one eightieth

(depending on the category of membership) of final pensionable salary for each year of service. Pensionable salary is

defined as the best successive 12 months’ salary in the past three years. Benefits are also payable on death and following

other events such as withdrawing from active service. No other post-retirement benefits are provided to these employees.

Profile of the Scheme

The Defined Benefit Obligation (DBO), which closed to new members in 2013, includes benefits for current employees, former

employees and current pensioners. Broadly, about 39% of the DBO is attributable to current employees, 9% to deferred

pensioners and 53% to current pensioners. The Scheme duration is an indicator of the weighted-average time until benefit

payments are made. For the Scheme as a whole, the duration is around 15 years at 30 September 2025 reflecting the

approximate split of the defined benefit obligation.

Funding requirements

The last funding valuation of the Scheme was carried out by a qualified actuary at 31 December 2021 and showed a surplus

of £17.1m. The Company has agreed to pay contributions of 20.6% (26.6% for non-contributory members) of pensionable

salaries in respect of current accrual, with contributory members paying a further 6% of pensionable salaries. The funding

valuation at 31 December 2024 is currently in progress.

Risks associated with the scheme

The Scheme exposes the Company to some risks, the most significant of which are:

Asset volatility

The DBO is calculated using a discount rate set with reference to corporate bond yields. If assets underperform this yield,

this will create a deficit.

The Scheme holds a significant proportion of growth assets (equities and diversified growth funds) which, though expected

to outperform corporate bonds in the long-term, create volatility and risk in the short-term. The allocation to growth assets

is monitored to ensure it remains appropriate given the Scheme’s long-term objectives.

Changes in bond yields

A decrease in corporate bond yields will increase the value placed on the Scheme’s DBO for accounting purposes, although

this will be partially offset by an increase in the value of the Scheme’s bond holdings.

Inflation risk

A portion of the Scheme’s DBO is linked to inflation, and higher inflation leads to a higher DBO. Most of the assets are either

unaffected by or only loosely correlated with inflation, meaning that an increase in inflation may also increase the deficit.

Life expectancy

The majority of the Scheme’s obligations are to provide benefits for the lifetime of the member, so increases in life expectancy

will result in an increase in the DBO.

Risk management

The Company and trustees have agreed a long-term strategy for reducing investment risk as and when appropriate. This

includes an asset-liability matching policy which aims to reduce the volatility of the funding level of the Scheme by investing

in assets which perform in line with the liabilities of the Scheme.

The trustees insure certain benefits which are payable on death before retirement.

Reporting at 30 September 2025

The results of the latest funding valuation at 31 December 2021 have been adjusted to the new balance sheet date, taking

account of experience over the period since 31 December 2021, changes in market conditions, and differences in the financial

and demographic assumptions. The present value of the Defined Benefit Obligation, and the related current service cost,

were measured using the projected unit credit method.

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Financial statements

Notes to the Consolidated Statements

(continued)

16 Pensions

(continued)

The principal assumptions used to calculate the liabilities under IAS 19 are as follows:

Main financial assumptions

	Value at	Value at
	30 September	30 September
	2025	2024
	% p.a.	% p.a.
Discount rate	5.9	5.1
Jersey RPI inflation	3.5	3.6
Pension increases in payment
– Short term (year 1)	–	–
– Long term (year 2 onwards)	–	–
Pension increases in payment for pensions purchased with AVCs	3.5	3.6
Salary increase:
– Short term (year 1)	3.0	5.0
– Short term (year 2)	2.5	3.6
– Long term (year 3 onwards)	3.0	3.6

The financial assumptions reflect the nature and term of the Scheme’s liabilities.

Main demographic assumptions

	Value at 30 September 2025	Value at 30 September 2024
Post-retirement mortality base table	SAPS “S3P” (All) tables for males and	SAPS “S3P” (All) tables for males and
	SAPS“S3P” (Mid) tables for females	SAPS “S3P” (Mid) tables for females
	with 95% scaling	with 95% scaling
Post-retirement mortality future improvements		CMI 2022 projections
	CMI 2024 projections	(A = 0.0%, Sk = 7.0, w2020, w2021 = 0%
	(A = 0.0%, H=1.0)	and w2022 = 25%)
	with long-term improvements of 1.25% p.a.	with long-term improvements of 1.25% p.a.
Life expectancy for male currently aged 60	26.5	26.3
Life expectancy for female currently aged 60	28.7	28.6
Life expectancy at 60 for male currently aged 40	28.1	27.9
Life expectancy at 60 for female currently aged 40	30.2	30.1
DB transfers	0% of deferred members	0% of deferred members a
	are assumed to transfer out	re assumed to transfer out
Age difference	A male member is assumed to be	A male member is assumed to be
	3 years older than his wife/partner.	3 years older than his wife/partner.
	A female member is assumed to be	A female member is assumed to be
	1 year younger than her husband/partner.	1 year younger than her husband/partner.
Proportion married	85% of male members and 62.5% of female	85% of male members and 62.5% of female
	members are assumed to be married at	members are assumed to be married at
	retirement or earlier death.	retirement or earlier death.
Cash commutation	Active and deferred members commute 25%	Active and deferred members commute 20%
	of pension at a rate equivalent to 100%	of pension at a rate equivalent to 90%
	of the value of the member's pension	of the value of the member's pension

Assets

The Scheme assets are invested in the following asset classes. All assets have a quoted market value in an active market.

	Value at	Value at
	30 September	30 September
	2025	2024
	% p.a.	% p.a.
LDI/UK Gilts	29,136	37,036
Equities	21,616	30.388
Diversified Growth Funds	58,479	49,222
Cash and cash commitments	495	611
Total market value of assets	109,726	117,257

Reconciliation of funded status to balance sheet

	Value at	Value at
	30 September	30 September
	2025	2024
Fair value of Scheme assets	109,726	117,257
Present value of funded Defined Benefit Obligation	(82,464)	(89,305)
Funded status and asset recognised on the balance sheet	27,262	27,952
Related deferred tax liability	(5,451)	(5,590)
Net pension asset recognised on the balance sheet	21,811	22,362

Profit and loss and comprehensive income

	2025	2024
	£000	£000
Operating cost
Service cost	1,191	1,068
Past service cost (including curtailments)	3,039	–
Administration expenses	486	374
Financing cost
Interest on net defined benefit assets	(1,452)	(1,410)
Pension expense recognised in profit and loss	3,264	32
Remeasurements in OCI
Return on Scheme assets (in excess of)/below that recognised in net interest	8,845	(5,654)
Actuarial (gains)/losses due to changes in financial assumptions	(10,370)	4,115
Actuarial gains due to changes in demographic assumptions	523	(172)
Actuarial losses due to liability experience	(47)	786
Total amount recognised in OCI	(1,049)	(925)
Total amount recognised in profit and loss and OCI	2,215	(893)

Changes in Defined Benefit Obligation over the year

	2025	2022
	£000	£000
Opening Defined Benefit Obligation	89,305	85,566
Current service cost	1,191	1,068
Interest expense on DBO	4,414	4,457
Contributions by Scheme participants	420	420
Actuarial losses/(gains) on Scheme liabilities arising from changes in financial assumptions	(10,370)	4,115
Actuarial gains Scheme liabilities arising from changes in demographic assumptions	523	(172)
Actuarial losses on Scheme liabilities arising from experience	(47)	786
Net benefits paid out	(6,011)	(6,935)
Past service cost	3,039	–
Closing Defined Benefit Obligation	82,464	89,305

Changes to fair value of the Scheme assets during the year

	2025	2024
	£000	£000
Opening fair value of Scheme assets	117,257	111,112
Interest income on Scheme assets	5,866	5,867
Remeasurement gains/(losses) on Scheme assets	(8,845)	5,654
Contributions by the employer	1,525	1,513
Contributions by Scheme participants	420	420
Net benefits paid out	(6,011)	(6,935)
Administration costs incurred	(486)	(374)
Closing fair value of Scheme assets	109,726	117,257

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Financial statements

Notes to the Consolidated Statements

(continued)

16 Pensions

(continued)

Actual return on Scheme assets

	2025	2024
	£000	£000
Interest income on Scheme assets	5,866	5,867
Remeasurement gain/(loss) on Scheme assets	(8,845)	5,654
Actual return on Scheme assets	(2,979)	11,521

Analysis of amounts recognised in OCI

	2025	2024
	£000	£000
Total remeasurement gains/(losses)	1,049	925
Total gains/(loss)	1,049	925

Sensitivity analysis

The tables below set out the impact to the balance sheet and profit and loss from changes to some of the key assumptions

in the discount rate, salary increases, inflation and mortality.

	Change	New value
	£000	£000
Discount rate: Following a 0.5% p.a. decrease in the discount rate
Pension expense for the following year	576	393
DBO at 30 September 2025	5,511	87,975
Discount rate: Following a 0.5% p.a. increase in the discount rate
Pension expense for the following year	(581)	(764)
DBO at 30 September 2025	(4,978)	77,486
Salary increases: Following a 0.5% p.a. increase in the salary increase
Pension expense for the following year	156	(27)
DBO at 30 September 2025	1,381	83,845
Inflation rate: Following a 0.5% p.a. decrease in inflation
Pension expense for the following year	(166)	(349)
DBO at 30 September 2025	(1,505)	80,959
Inflation rate: Following a 0.5% p.a. increase in inflation
Pension expense for the following year	173	(10)
DBO at 30 September 2025	1,670	84,134
Mortality Following a 1 year increase in life expectancy
Pension expense for the following year	149	(34)
DBO at 30 September 2025	2,062	84,526

17 Share capital

		Issued and		Issued and
	Authorised	fully paid	Authorised	fully paid
	2025	2025	2024	2024
	£000	£000	£000	£000
‘A’ Ordinary shares 5p each (2024: 5p each)	1,250	582	1,250	582
Ordinary shares 5p each (2024: 5p each)	1,500	950	1,500	950
	2,750	1532	2,750	1,532
5% Cumulative participating preference shares £1 each	100	100	100	100
3.5% Cumulative non-participating preference shares £1 each	150	135	150	135
	250	235	250	235

Equity shares

‘A’ Ordinary shares entitle the holder to 1 vote for every 100 shares held whereas the Ordinary shares carry voting rights of 1 vote

for every 20 shares held. At 30 September 2025 there were 11,640,000 ‘A’ Ordinary and 19,000,000 Ordinary shares in issue

(no change from 30 September 2024).

Preference shares

Preference shares are classified as financial liabilities under IFRS. Dividends paid to preference shareholders in the year were

£9,000 (FY24: £9,000) and are recorded in finance costs in the consolidated income statement. 5% preference shares carry

voting rights of 1 vote per 5 shares and 3.5% preference shares carry voting rights of 1 vote per 10 shares.

ESOP reserve

The Jersey Electricity Employee Benefit Trust was established on 24 May 2012 when the Company introduced a new employee

share scheme for eligible employees of the Group based on a three-year vesting period. As at 30 September 2025, 7,900

remain within the Trust as unallocated shares with a combined valuation of £37,000 representing a market value of £4.70

per share. These shares are expected to form part of a future employee share scheme. The Trust was funded by way of an

interest free loan and for accounting purposes is seen as an extension of the Group.

18 Non‑controlling interests

	2025	2024
	£000	£000
At 1 October	44	132
Share of profit on ordinary activities after taxation	64	82
Dividends paid	(70)	(170)
At 30 September	38	44

Non-controlling interests represent 44% (FY24: 49%) ownership of the issued ordinary share capital of Jersey Deep Freeze Limited.

19 Financial commitments

	2025	2024
	£000	£000
Contracted	8,700	1,111
Not contracted 1	147,600	166,250
	156,300	167,361

Although this sum is approved in principle it is still subject to formal business cases being reviewed in due course.

20 Leasing

Operating leases with tenants

The Group leases out all its investment properties and certain other freehold properties under operating leases. The future

aggregate minimum rentals receivable under non-cancellable operating leases are as follows:

	2025	2024
	£000	£000
No later than 1 year	1,785	1,643
Later than 1 year and no later than 2 years	1,198	1,457
Later than 2 years and no later than 3 years	1,206	1,106
Later than 3 years and no later than 4 years	1,206	1,106
Later than 4 years and no later than 5 years	1,215	1,106
Later than 5 years	7,919	9,246
	14,529	15,664

21 Derivatives and financial instruments and their risk management

(i) Categories of financial instruments

The carrying values of the financial assets and liabilities of the Group are as follows:

Financial assets

	2025	2024
	£000	£000
Fair value through other comprehensive income
Derivative financial instruments	1,186	–
Amortised cost
Secured loan accounts	300	300
Trade and other receivables (excluding prepayments)	21,624	21,528
Cash and cash equivalents	38,690	49,190
	60,614	71,018

Financial liabilities

	2025	2024
	£000	£000
Fair value through other comprehensive income
Derivative financial instruments	571	4,052
Amortised cost
Borrowings	30,000	30,000
Trade and other payables	10,428	10,842
Financial Liabilities – Preference Shares	235	235
	40,663	41,077

The primary financial risk faced by the Group is foreign exchange exposure as the largest single cost in the consolidated

income statement is the importation of electricity from Europe that is denominated in Euros.

The Group’s currency exposure at 30 September 2025, taking into account the effect of forward contracts placed to manage

such exposures, was £3.0m (FY24: £2.5m) being the translated Euro liability due for imports made in September but payable

in October.

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 to readily available market prices); and

Level 3

financial instruments are shown at values that are determined by assumptions that are not based on observable

market data (unobservable inputs).

The derivative contracts for foreign currency shown are classified as level 2 financial instruments and are valued using a

discounted cash flow valuation technique. Future cash flows are estimated based on forward exchange rates (from observable

forward exchange rates at the end of the reporting period) and contracted forward rates, discounted at a rate that reflects

the credit risk of various counterparties.

(ii) Foreign exchange risk

The Group utilises currency derivatives to hedge the payment of a proportion of its future purchases of power from France

which currently extend to the next three calendar years.

Due to the nature of the Euro denominated purchases being largely underpinned by contracted amounts the Group

has accurate expectations of the values and timings of future liabilities, reducing the risk of exposure to hedge against

ineffectiveness which would arise if units imported were to vary by more than 20% from established patterns.

Foreign exchange hedging instruments are contracted to mature as the liabilities fall due and so minimise any timing or other

uncertainties of future cash flows.

Currency derivatives

	2025	2024
	£000	£000
Derivative assets
Less than one year	550	–
Greater than one year	636	–
Derivative liabilities
Less than one year	(571)	(2,601)
Greater than one year	–	(1,451)
Total net liabilities	615	(4,052)
Tax on items recorded through the balance sheet	(123)	810
	492	(3,242)

At the balance sheet date, the total notional amount of outstanding forward foreign exchange contracts that the Group

has committed are as below:

Forward foreign exchange contracts

	2025	2024
	£000	£000
Less than one year - operational expenditure	41,463	46,165
Greater than one year and less than three years	22,696	27,450
	64,159	73,615

The fair value of currency derivatives that are designated and ineffective as cash flow hedges amount to £nil (FY24: £nil).

In the current period amounts of £4.6m net were credited (FY24: £3.5m debit) to equity, being £5.2m fair value gain (FY24: £3.2m

fair value loss) and £0.6m debit (FY24: £0.3m debit) recycled to the consolidated income statement. Gains and losses on the

derivatives are recycled through the consolidated income statement at the time the purchase of power is recognised.

The table below provides the reconciliation for the cashflow reserve:

Hedging Reserve

	2025	2024
	£000	£000
At 1 October	(3,241)	(455)
Amounts recycled from other comprehensive income to income statement	2,600	(324)
Changes in fair value recognised in other comprehensive income	2,067	(3,159)
Tax on items recorded in other comprehensive income	(934)	697
At 30 September	492	(3,241)

Given the limited exposure to foreign exchange rate risk at the year-end no sensitivity analysis has been presented.

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Governance

Financial statements

Notes to the Consolidated Statements

(continued)

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Notes to the Consolidated Statements

(continued)

21 Derivatives and financial instruments and their risk management

(continued)

(iii) Commodity risk power purchases

The Group has power purchase agreements with EDF in France. As at 30 September 2025, the import prices, but not volumes,

have been substantially fixed for 2026. The Group entered into a 10-year framework agreement with EDF on 1 January 2013

which has a commitment to procure around 35% of expected volume requirements at known prices. During 2017 this agreement

was extended by a further 5 years to 2027. The remainder of the requirement will be decided by a market pricing mechanism,

but with no volume commitment, with a goal to deliver a degree of stability in tariff pricing to our customers.

(iv) Credit risk

The Group’s principal financial assets are cash and cash equivalents, short-term investments and trade and other receivables.

The Group’s credit risk is primarily attributable to its trade and other receivables. The amounts presented in the consolidated

balance sheet are net of allowances for expected credit losses which are set out below. The trade and other receivables at

30 September 2025 outside agreed credit terms are as follows:

	2025	2024
	£000	£000
Less than 30 days	1,769	1,669
Greater than 30 days	283	276
Greater than 60 days	194	386
Greater than 90 days	1,185	488
	3,431	2,819

The credit risk on liquid funds and derivative financial instruments is limited because the counterparties are banks with high

credit ratings assigned by international credit-rating agencies. The Group monitors its credit exposure to its counterparties

via their credit ratings and through its treasury policy, thereby limiting its exposure to any one party to ensure that they are

within Board approved limits and that there are no significant concentrations of credit risk.

For trading related receivables, the credit worthiness and financial strength of customers is assessed at inception and on an

ongoing basis. Payment terms are set in accordance with industry standards. Deposits are requested where credit knowledge

of the customer is limited. The Group works closely with its customers to assist them in effectively managing their bill payments.

The Group has no other significant concentration of credit risk. Exposure is spread over a large number of counterparties and

customers with a maximum credit exposure of £24.4m (FY24: £23.1m).

Expected credit losses provision

The Group applies the IFRS 9 simplified approach to measuring expected credit losses which assesses if a material expectation

exists for lifetime expected loss allowances against all trade receivables based on historical realised write-downs. Where

specific customers are viewed to be at risk of default due to known or expected economic circumstances, their receivable

balances at the balance sheet date are provided for in full.

An explanation of the Group’s assessment for calculating expected credit losses and balance write-offs is detailed in note 1.

An expected credit losses provision is recorded against assets which are past due but for which no individual provision is made.

This is calculated based on historical experience of levels of recovery.

Movements in the provision for expected credit losses were as follows:

	2025	2024
	£000	£000
At 1 October	685	490
Charge for expected credit losses - included within operating costs	371	268
Amounts written (off)/back	(92)	(73)
At 30 September	964	685

Provision of impaired receivables (by age) is as follows:

	2025	2024
	£000	£000
0-180 days	371	222
181-360 days	446	351
Greater than 360 days	147	112
	964	685

(v) Capital management

Strong capital management is an integral part of the Directors’ strategy to achieve the Group’s stated objectives. The capital

managed by the Group consists of borrowings, cash and cash equivalents and equity of the Group. The Directors review

financial capital KPI’s on a monthly basis. The £30m private placement drawn down in July 2014 provides long-term funding

to the Group. Liquid funds are managed daily and placed on short-term deposits maturing to meet liabilities when they fall

due. The Group is subject to externally imposed capital requirements in respect of the borrowing facilities detailed in note 15.

The Group has complied with these requirements throughout the year.

(vi) Liquidity risk

The Group maintains a strong liquidity position and manages the liquidity profile of its assets, liabilities and commitments so

that cash flows are appropriately balanced and all financial obligations are met when due.

Maturity of financial liabilities at 30 September

	2025	2024
	£000	£000
Less than one year	24,457	27,274
More than one year and less than five years	38,193	38,144
More than five years	38,748	40,088
	101,398	105,506

Financial liabilities shown above include interest payments payable on the £30m private placement.

Borrowing facilities

The Group had undrawn borrowing facilities at 30 September 2025 of £12.0m (FY24: £2.0m) in respect of which all conditions

precedent had been met. The overdraft facility of £2.0m is annually renewable, and the Revolving Credit Facility was

renewed in August 2025 for a period of two years.

Maturity of financial assets and liabilities

The financial assets of the Group comprise deposits placed with banks which all expire in less than one year. The maturity

profile of the Group’s financial assets and liabilities at 30 September was as follows:

Maturity of financial assets at 30 September

	2025	2024
	£000	£000
Less than 3 months: cash and cash equivalents and short-term investments	10,690	14,190
Greater than 3 months: short-term investments	28,000	35,000

Interest rate risk

Interest rate exposure on the £30m of private placements borrowing is managed by having fixed coupons.

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Governance

Financial statements

Notes to the Consolidated Statements

(continued)

22 Ultimate controlling party and related party transactions

Government of Jersey (“GoJ”)

Under IFRS 10, an investor controls an investee only if all three elements of control identified in the standard are present.

Although the GoJ holds the majority voting rights, the Directors have concluded that two of the three elements to establish

control are not present, and as a result we do not consider that the GoJ should be considered an ultimate controlling party.

The two elements and the basis for our conclusions are set out below:

That an investor has control if it has power over the investee, i.e., the investor has existing rights that give it the ability to direct

the relevant activities (the activities that significantly affect the investee’s returns) IFRS 10. The GoJ do not have control over

Jersey Electricity’s operating activities and there are no representatives on the Board from the Government of Jersey.

Pursuant to Rule 9.2.2 of the Listing Rules, a Relationship Agreement was signed in 2014 to ensure the GoJ understands the

implications of the listed status of Jersey Electricity and that it cannot control the Company’s operating activities despite

their majority ownership.

That an investor has control if it has the ability to use its power over the investee to affect the amount of the investor’s returns

IFRS 10. The Jersey Electricity Board set the dividend policy for the Company, and only data that is available to all shareholders

is shared with the GoJ.

The Company has elected to take advantage of the disclosure exemptions available in IAS 24 (paragraphs 24 and 25) with

regard to the reporting of;

•

the amount of the transactions,

•

the amount of outstanding balances, including terms and conditions and guarantees,

•

provisions for doubtful debts related to the amount of outstanding balances,

•

expense recognised during the period in respect of bad or doubtful debts due from related parties,on the basis that the

GoJ, despite not being a controlling party, has significant influence by virtue of holding the majority voting rights and by

means of legislation, specifically the Electricity (Jersey) Law 1937.

All transactions are undertaken on an arms-length basis in the course of ordinary business.

Energy from Waste Plant

Jersey Electricity signed a 25-year agreement in 2008 with the Government to purchase electricity produced by the EFW

plant and to share existing facilities with EFW. This agreement gives rise to the high value transactions with the Government

during the year with the value of electricity purchased from the facility during the year being £3.1m (FY24: £2.7m) whilst the

value of services provided to the plant was £0.1m (FY24: £0.1m).

Remuneration of key management personnel

The remuneration of key management personnel of the Group (which is defined as the Executive and non-Executive Directors)

is set out below.

	2025	2024
	£000	£000
Short-term employee benefits	779	867
Post-employment benefits	69	75
Non-Executive Director’s benefits	294	237
	1,142	1,179

Short-term employee benefits are made up as follows:

	2025	2024
	£000	£000
C.J. Ambler
Salaries and benefits for financial year	349	333
Bonus accrued in financial year	185	176
	534	509
L.G. Fulton
Salaries and benefits for financial year	245	249
Bonus accrued in financial year	–	109
	245	358
	779	867

Five Year Group Summary

(unaudited)

	2025	2024	2023	2022	2021
Turnover	146.2	135.7	125.1	117.4	118.6
Operating profit	13.9	14.4	14.5	11.9	20.5
Profit before tax	14.2	15.1	14.9	10.6	19.1
Profit after tax	11.1	11.7	11.4	8.5	16.3
Dividends paid (£m)	6.4	6.1	5.8	5.5	5.2
Balance Sheets (£m)
Property, plant and equipment	243.4	225.5	216.1	216.2	216.6
Net current assets/(liabilities)	46.3	53.2	59.2	51.5	45.3
Non-current liabilities	(95.1)	(93.7)	(91.3)	(90.8)	(87.5)
Net assets	254.1	245.0	241.5	239.4	224.4
Financial Ratios and Statistics
Earnings per ordinary share (pence)	35.9	37.9	36.8	27.2	52.7
Gross dividend paid per ordinary share (pence)	26.0	24.8	23.5	21.8	21.1
Net dividend paid per ordinary share (pence)	20.8	19.8	18.8	17.4	16.9
Dividend cover (times)	1.7	1.9	2.0	1.6	3.1
Cash at bank/(net debt) (£m)	8.7	19.2	17.4	17.4	13.1
Capital expenditure (£m)	23.4	23.2	11.1	10.4	9.9
Electricity Statistics
Units sold (m)	616	609	608	613	639
% movement	1.1%	0.2%	-0.7%	-4.3%	3.3%
% of units imported	93.7%	94.5%	94.5%	95.3%	95.2%
% of units generated	1.0%	0.5%	0.4%	0.3%	0.4%
% of units from Energy from Waste	5.3%	5.0%	5.1%	4.4%	4.4%
Maximum demand (megawatts)	155	163	159	145	170
Number of customers	54,302	53,726	53,343	52,473	51,912
Customer minutes lost	8	10 1	4	5	5
Average price per kilowatt hour sold (pence)	19.1p	17.5p	15.8p	14.5p	13.9p
Manpower Statistics (full time equivalents)
Energy	282	271	258	253	238
Other	89	91	74	92	88
Trainees	14	16	18	18	21
Total	385	378	350	363	347
Units sold per Energy employee (000's)	2,180	2,248	2,357	2,422	2,686
Number of customers per energy employee	192	198	207	207	218

The reported number of customer minutes lost in 2024 was adjusted to exclude the impacts of Storm Ciaran (78 CMLs).

150

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Governance

Strategy

Financial statements

2 January 2026	Preference share dividend
20 February 2026	Record date for final dividend
5 March 2026	Annual General Meeting
13 March 2026	Final dividend for year ended 30 September 2025
4 June 2026	Interim Management Statement – six months to 31 March 2026
12 June 2026	Record date for interim ordinary dividend
26 June 2026	Interim dividend for year ending 30 September 2026
1 July 2026	Preference share dividend
16 December 2026	Announcement of full year results

Annual General Meeting

The Annual General Meeting will be held at the Powerhouse, Queens Road, St. Helier, Jersey on Thursday 5 March 2026 at

2:00pm. Details of the resolutions to be proposed are contained in the Notice convening the Meeting.

Press releases and up-to-date information on the Company can be found on the Company’s website (

www.jec.co.uk

The tables below provide details for the alternative performance measures disclosed within the annual report.

Return on energy assets

The return on energy assets is defined as the return on capital employed by the Energy Division.

	2025	2024
	£000	£000
Capital employed by Energy division at 1 October (A)	172,548	178,073
Capital employed by non-Energy Divisions at 1 October	39,881	38,063
Energy operating profit (note 3) (B)	12,731	13,020
% return (B/A)	7.4%	7.3%
5 year rolling average	6.4%	6.3%

Dividend cover

The Dividend cover measures the number of times a company can pay its current level of dividends to shareholders.

	2025	2024
	£000	£000
Earnings per ordinary share (pence) (A)	35.9	37.9
Net dividend paid per ordinary share (pence) (B)	20.8	19.8
Dividend cover (times) (A/B)	1.7	1.9

Alternative performance measures

Financial calendar

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Shareholder information

Non-Executive Directors

Phil Austin MBE

Tony Taylor

Amanda Iceton

Kayte O’Neill

Iman Hill

Roger Blundell

Executive Directors

Chief Executive

Christopher Ambler

Secretary

Non Owen

Registered office

Queen’s Road,

St. Helier

Jersey JE4 8NY

Registration No.

Place of incorporation

Jersey Electricity Plc (‘the Company’) and Jersey Offshore

Wind Limited and Jersey Deep Freeze Limited (together

‘the group’) are incorporated in Jersey.

Independent Auditors

PricewaterhouseCoopers CI LLP

37 Esplanade

St. Helier

Jersey JE1 4XA

Bankers

Royal Bank of Scotland International Limited

71 Bath Street

St. Helier

Jersey JE4 8PJ

Brokers

Canaccord Genuity Wealth Management

PO Box 3

37 The Esplanade

St. Helier

Jersey JE4 0XQ

Registrar

Computershare Investor Services (Jersey) Limited

13 Castle Street

St. Helier

Jersey JE1 1ES

The Powerhouse,

PO Box 45

Queen’s Road,

St Helier JE4 8NY

Tel:

01534 505460

Fax:

01534 505565

email:

jec@jec.co.uk