Interim Results

Jersey Electricity Company Limited
20 May 2004

                         The Jersey Electricity Company
                   Preliminary announcement of Interim Results
                     for the six months ended 31 March 2004

At a meeting of the Board of Directors held on 19 May 2004, the Board approved
the Interim Accounts for the Group for the six months ended 31 March 2004 and
declared an interim dividend of  45p gross (36p net of tax) compared to 41p
gross (32.8p net) in 2003 on the Ordinary and 'A' Ordinary shares. The dividend
will be paid on 27 August 2004 to those shareholders registered in the books of
the Company on 13 August 2004.

The Interim Accounts follow herewith and will be sent to all shareholders in due
course, following which, copies will be made available to the public at the
Company's registered office, Queens Road, St Helier, Jersey, JE4 8NY.


P.J. Routier
Company Secretary

Direct telephone number : 01534 505253
Direct fax number : 01534 505515
Email : [e-mail]

20 May 2004



The Powerhouse,
PO Box 45,
Queens Road,
St Helier,
Jersey JE4 8NY

                              Directors' Statement
Financial Summary                                    6 months             6 months             % rise/
                                                       2004                 2003             (reduction)

Electricity Sales -kWh (000)                         334,099              327,190                 2%
Group turnover                                        £30.6m               £32.7m                (6)%
Profit before tax                                     £4.7m                £4.1m                 13%
Earnings per share                                    £2.26                £2.06                 10%
Gross dividend per ordinary share                      45p                  41p                  10%
Cash generated in the 6 month period                  £2.0m                £0.3m                 567%

* pre-exceptional costs

Profits of £4.7m, before exceptional costs, for the first half of 2004 were 13%
higher than in the same period last year as electricity  sales continued their
trend of growth from increased market share and our previously loss making
Building Services business benefited from its strategic withdrawal from large,
low margin contracting activities.

Our Energy business increased profits by 11% to £4.6m and renewed for the third
successive year its pledge not to increase electricity prices. The impact of
continuing volatility in World oil and currency markets and sustained high
inflation in the Jersey economy was mitigated by the effectiveness of our Euro
price hedging strategy and the purchase of 93% (2003: 97%) of our power under
contract from the competitive European electricity market.

Property profits at £0.5m were unchanged as the portfolio is now stable and
relatively mature. The Building Services business produced a £0.1m profit in the
six month period, against losses of £0.3m last year.

Our Retail Appliance business experienced a difficult six months with
year-on-year profits down from £0.2m to £0.1m but this was consistent with the
trading pattern experienced by other retailers in Jersey. Our joint venture
company Foreshore Limited produced start-up losses down 24% at £0.3m on sales up
by 28% to £0.7m.

Losses at Newtel, our associated telecommunications company, increased from
£0.3m to £0.4m as it struggled to raise sufficient funding to overcome entry
obstacles in the newly liberalised, local telecoms market. It appears likely
that it has now secured external funding to develop the business further but we
continued our prudent policy of reviewing investments in our balance sheet, by
writing down the £1.5m carrying value of our 41% equity investment and loans in
Newtel, which is shown as an exceptional cost in the period. In October 2003 a
£2m agreement was signed with the market incumbent Jersey Telecom, to lease them
fibre optic cables contained within our continental telecom network.

Borrowings reduced from £4.5m to £2.5m during the last six months, with
operating cash produced from trading activity offset by £3.8m of capital
expenditure.

An actuarial revaluation of our Pension Scheme was performed as at 31 December
2003 and a deficit of £2.6m resulted. The Company increased contributions on
basic salary costs from 13.5% to 21.2% from early 2004, in addition to injecting
a special £7m contribution last year, as our continuous review of pension
matters had highlighted an emerging deficit consistent with other pension
schemes in the UK.

In January 2004 we announced our interest in acquiring the local water company,
Jersey New Waterworks Ltd (JNWW). The Finance and Economics Committee of the
States of Jersey, which is the largest shareholder in both companies, announced
in April that it could not presently support the proposal. It has commissioned
an independent Strategic Review of the Water Industry in Jersey, the outcome of
which will influence your Board's consideration of whether or not to make
another approach within the next 12 months.

Performance is expected to remain strong, enabling continued dividend growth in
the foreseeable future. Your Board proposes to pay a gross dividend of 45p
(2003: 41p) on the Ordinary and 'A' Ordinary Shares payable on 27 August 2004.
This dividend increase of 10% is in line with the increase in earnings per share
during the period, before exceptional costs.

D.R. MALTWOOD - Chairman      M.J.LISTON - Managing Director         20 May 2004


                     THE JERSEY ELECTRICITY COMPANY LIMITED
                      Consolidated Profit and Loss Account

                                                       6 months ended       6 months ended       12 months ended
                                                        31 March 2004        31 March 2003     30 September 2003

                                                                £ 000                £ 000                 £ 000
Turnover:
Group and share of joint venture                               30,915               32,967                59,809
Less: Share of joint venture turnover                           (347)                (272)                 (556)

Group turnover                                                 30,568               32,695                59,253
Cost of sales                                                (17,613)             (18,620)              (34,532)

Gross profit                                                   12,955               14,075                24,721
Net operating expenses                                        (7,529)              (9,327)              (17,266)
Exceptional item - restructuring costs                              -                    -                 (886)

Group operating profit                                          5,426                4,748                 6,569
Share of operating loss in joint venture                        (247)                (326)                 (655)
Share of associate's operating loss                             (417)                (260)                 (684)
Exceptional item - impairment of investment in                (1,521)                    -                     -
associate

Profit before interest and tax                                  3,241                4,162                 5,230

Net interest and similar charges                                 (90)                 (18)                  (21)

Profit before tax                                               3,151                4,144                 5,209

Tax on profit                                                 (1,191)                (950)               (1,771)

Profit after tax                                                1,960                3,194                 3,438

Minority interest                                                (14)                 (36)                  (66)

Profit after tax and minority interest                          1,946                3,158                 3,372

Dividends paid and proposed                                     (552)                (502)               (1,124)

Retained profit for the Group and share in                      1,394                2,656                 2,248
joint venture

Earnings per ordinary share (basic and diluted)                 £1.27                £2.06                 £2.20

Earnings per ordinary share (basic and diluted)
excluding exceptional items                                     £2.26                £2.06                 £2.66





                     THE JERSEY ELECTRICITY COMPANY LIMITED
                           Consolidated Balance Sheet

                                                 31 March 2004           31 March 2003       30 September 2003

                                                £ 000     £ 000       £ 000       £ 000       £ 000       £ 000
Fixed assets
Intangible fixed assets                                     121                     162                     141
Tangible fixed assets                                   119,049                 119,196                 120,186
Investments:
Shares                                                        5                       5                       5
Share of associate's net assets/                    -                    56                   (108)
(liabilities)
Loans to associate                                  -                   250                     981
                                                              -                     306                     873
Joint venture share of gross assets               503                   554                     561
Joint venture share of gross liabilities         (81)                 (406)                   (328)
Net share of joint venture assets                           422                     148                     233

                                                        119,597                 119,817                 121,438

Current assets                                 19,897                14,590                  19,633

Current liabilities                          (12,315)               (9,327)                (15,990)

Net current assets                                        7,582                   5,263                   3,643

Total assets less current liabilities                   127,179                 125,080                 125,081


Creditors falling due after more than one     
year                                          (1,698)                 (916)                 (1,344)
Pensions and similar obligations                (538)                 (432)                   (538)
Deferred tax                                 (11,049)              (12,846)                (10,699)

Less non-current liabilities                           (13,285)                (14,194)                (12,581)

                                                        113,894                 110,886                 112,500

Capital and reserves

Called up share capital                                   1,767                   1,767                   1,767
Reserves - equity                                       112,043                 109,021                 110,647

Shareholders' funds                                     113,810                 110,788                 112,414

Equity - minority interest                                   84                      98                      86
                                                        113,894                 110,886                 112,500




                     THE JERSEY ELECTRICITY COMPANY LIMITED
                        Consolidated Cash Flow Statement
                                                                             
                                                                 6 months ended     6 months ended  12 months ended
                                                                  31 March 2004      31 March 2003  30 September 2003
                                                                           £000              £ 000          £ 000
Reconciliation of operating profit to net cash inflow from
operating activities

Group operating profit                                                    5,426              4,748          6,569
Depreciation and amortisation charges                                     3,697              4,495          8,276
Decrease/(increase) in stocks and work in progress                          100               (69)          (253)
Decrease/(increase) in debtors                                              234            (3,025)        (8,036)
(Decrease) /increase in creditors                                       (1,744)              (727)            892


Net cash inflow from operating activities                                 7,713              5,422          7,448

Returns on investments and servicing of finance                            (90)               (18)           (21)
Tax                                                                           -                  -          (231)
Capital expenditure                                                     (3,791)            (3,832)        (7,661)
Other investments                                                       (1,245)              (717)        (1,386)
Dividends paid                                                            (617)              (563)        (1,173)


Increase in cash                                                          1,970                292        (3,024)

Reconciliation of net debt


Change in net funds                                                       1,970                292       (3,024)
Net debt - start of period                                              (4,510)            (1,486)       (1,486)


Net debt - end of period                                                (2,540)            (1,194)        (4,510)




                     THE JERSEY ELECTRICITY COMPANY LIMITED
                       Notes to the Financial Statements
                       for the period ended 31 March 2004

1.      Basis of preparation

The unaudited interim accounts have been prepared on the basis of the accounting
policies set out in the Notes to the 2003 Financial Statements.


2.      Turnover and profit

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

                                             Turnover                        Profit/(loss)
                                                                       before interest and tax
                                       £ 000        £ 000        £ 000        £ 000           £ 000        £ 000
                                6 months to  6 months to  12 months to 6 months to    6 months to   12 months to
                          Notes 31 Mar 2004  31 Mar 2003  30 Sept 2003 31 Mar 2004    31 Mar 2003   30 Sept 2003
Energy                                24,103       23,642       42,244        4,625           4,167        6,536
Building Services                      1,217        3,244        6,717          127           (283)        (414)
Retail Appliance Sales                 3,026        3,296        5,773          114             182          141
Property                                 996          979        1,964          548             531        1,008
Others                                 1,573        1,806        3,111        (652)           (435)      (1,155)

                                      30,915       32,967       59,809        4,762           4,162        6,116
Exceptional items:           

Impairment of
investment in
associate                    3a                                             (1,521)               -            -
                             
Restructuring costs          3b                                                   -               -        (886)
Profit before interest                                                        3,241           4,162        5,230
and tax

The information currently available to report the net assets of each business
class as each reportable segment is limited as each business operates as a
division of the Group and therefore in certain instances there is no reasonable
basis to allocate the Group net assets to each business class. On a geographical
basis, the Group's material operations are conducted within the Channel Islands
area.

The Building Services business, previously named Contracting, has been renamed
due to the change in focus of activities.
Income from Public Lighting is now also shown in this segment but was
previously included in the 'Others' segment.


3.   Exceptional items

a.         Impairment of investment in associate


The exceptional item of £1,521,000 in the 6 months to 31 March 2004 relates to
the write-down of the Group investment in our associate Newtel Holdings Limited.

b.         Restructuring costs

In the 12 months to 30 September 2003, £886,000 of exceptional manpower cost
reductions within the Contracting business were incurred. The related tax
benefit was £177,000 giving a net cost for the year to 30 September 2003 of
£709,000.


4. Current assets

The current assets figure in the balance sheet as at 31 March 2004 includes
the remaining prepayment of £6.6m in relation to the £7.0m special contribution
injected in the Company Pension Scheme in July 2003.


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