Trading Statement - COVID 19

RNS Number : 3001I

Jersey Electricity PLC

31 March 2020

 

JERSEY ELECTRICITY PLC

31 March 2020

COVID-19 Update

Jersey Electricity Plc ('the Company') is the sole supplier of electricity in Jersey and as such recognises its importance to all aspects of life in the community. Over recent weeks, we have been monitoring the development of the COVID-19 epidemic and in response to this we have established an incident response team to put in place actions to mitigate the risks arising from the spread of the virus, whilst at the same time maintaining essential services and protecting the business overall.

In these unprecedented times, the health, safety and wellbeing of the public, our customers and our employees are our key priorities. We are doing all we can to support them and help prevent the spread of the virus. Following the latest Government and Public Health guidance, where possible, employees are working from home and we have strict precautions in place at our sites, including enhanced levels of cleaning, additional hygiene facilities and social distancing. Many of our employees are designated essential workers and are delivering the best possible service to customers during this challenging time. 

We recognise that this current crisis will place financial strain on a significant proportion of our customer base and we have stepped up support for those affected customers, including flexibility regarding payment of bills assessed on a case-by-case basis.  In light of these challenging circumstances for our customers, we also deferred a planned 2.5% tariff rise which was to be effective from 1 April, at an estimated cost of £1m in the second half of our financial year.

We are scheduled to issue half year results to 31 March 2020 in mid-May.  Whilst these results have only been marginally impacted by COVID-19 events, there remains considerable uncertainty over the impact of the virus on the Company going forward, including the impact on unit sales of electricity and the level of overdue and bad customer debt.

The Company has a robust liquidity position with cash deposits on balance sheet, low gearing and a £10m undrawn bank facility and as such is well protected against shocks to the business that may be experienced as a result of the outbreak.

The Company paid its final dividend for the year ended 30 September 2019 on 26^th March 2020.  We will continue to monitor the impacts of this epidemic on the business and will consider whether any changes should be made to our dividend policy.

 

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