Guernsey Electricity Lowers Costs with Subsea Interconnector Cable (UK)
Guernsey Electricity has announced an operating profit of £4.7m for the year up to March 31st 2012. But, managing director Alan Bates said that the company was facing very challenging times that will require significant investment.
“We are very pleased to report to our shareholders that Guernsey Electricity has returned a reasonable profit in 2012. This is a key part of our plans to invest in infrastructure for the island, with generation plant and further cable link capacity high priorities for the island.”
Mr Bates also acknowledged that despite the company making a profit this year, low profits and losses in previous years were still having an effect on the company.
“If you look at the last ten years since commercialisation, Guernsey Electricity has made an aggregate profit of only £1.7m for that period. That is simply not enough to sustain a capital intensive business and we are seeing the effects on our tariff levels and on the funds available for necessary capital investment.”
The company reports a continuing trend for importing electricity with the annual report focussed on the time period prior to the cable link failure.
“In 2011/2012 Guernsey imported 82.1% of its electricity from France. 69.6% of this was provided by nuclear power, 6.8% was from renewable sources and the rest made up from fossil fuel sources. 2011 was also significant as it saw the signing of a new deal between the Channel Islands Electricity Grid (CIEG) and Électricité de France (EdF) safeguarding our access to imports until 2023.
“Crucially, the new deal demonstrates our commitment to lower carbon energy, with 30% of the EdF supply guaranteed from hydroelectric sources and the remaining 70% nuclear. This means that the only fossil fuel used for supply will be local generation.
“These figures show that when it is in normal operation, the subsea interconnector cable is the best source of lower cost, lower carbon electricity for the island.”
Another major contract was also signed in 2011; an agreement with Wartsila to provide a new medium speed diesel generator, the first stage in replacing Guernsey Electricity’s aging fleet of slow speed diesel engines.
Chairman Ian Beattie said significant changes had occurred at board level during the year.
“This year we have welcomed four new members to the Guernsey Electricity board of directors; Sally-Ann David and Bob Beebe have joined the board as directors following internal promotions and we have also been joined by two new non-executive directors in Ian Hardman and Bob Lawrence. Both of our new NED’s bring more invaluable business experience to the company.”
Investment in the company also extends to Guernsey Electricity staff and the company has continued its commitment to developing careers for local people. Alongside bursaries and work experience offers to local students, the company continues to offer apprenticeships and currently has 12 members of staff who began their careers at Guernsey Electricity as apprentices.
This focus on staff development benefits the company in many ways, not least through better health and safety and the company reports that both working days lost and accidents causing lost time continued to show a downward trend from 2009.
Mr Bates also reported that the company had met the 100% target for 10 of its 12 service standards.
Press Release, August 01, 2012