This announcement by the Jersey Electricity Company Limited replaces the announcement regarding the Interim Management Report released at 07.00 this morning. The record date stated was incorrect and has been amended to 20 June 2008.

All other details contained in the announcement below remain unchanged.

The Jersey Electricity Company

 Interim Management Report

for the six months ended 31 March 2008

At a meeting of the Board of Directors held on 14 May 2008, the Board approved the Interim Management Report for the Group for the six months ended 31 March 2008 and declared an interim dividend of 91.25p gross (73p net of tax) compared to 61.25p gross (49p net) in 2007 on the Ordinary and 'A' Ordinary shares. The dividend will be paid on 30 June 2008 to those shareholders registered in the books of the Company on 20 June 2008.

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

The Interim Management Report for 2008 has not been audited or reviewed by our external auditors nor have the results for the equivalent period in 2007. The results for the year ended 30 September 2007 have been extracted from the statutory accounts for that period which had an unqualified audit opinion. 

P.J. Routier

Company Secretary

Direct telephone number : 01534 505253

Direct fax number : 01534 505515

Email : proutier@jec.co.uk

14 May 2008

The Powerhouse,

PO Box 45,

Queens Road,

St Helier,

Jersey JE4 8NY 

Jersey Electricity Company Limited

Unaudited Interim Management Report

for the six months to 31 March 2008

Group profit before tax in the first half of 2008 was £6.8m being 40% higher than in the same period last year due to strong growth across all our businesses and a higher level of electricity unit sales in the last six months, following a very mild first half last year. This performance restores profitability to the levels prevailing prior to 2006 when we voluntarily pledged a two-year electricity price freeze and importantly, will support planned major investment, on which the continuing reliability of our electricity network depends. Earnings per share rose by 41% in line with the above profit increase.  

Having hedged our position in the forward power and currency markets, we were able to honour our pledge last year that prices to customers would remain unchanged until 2009. European wholesale electricity prices have risen by around 30% since the start of this financial year and in addition the value of Sterling against the Euro, in which our power purchases are denominated, has deteriorated by 15% in the same period. Regrettably, we anticipate a need for tariff increases in 2009, which will mean that the majority of our customers will pay power prices similar to those in the UK, where rises of 11% have already taken place in the first quarter of 2008, but our tariff levels will still be lower on average than those in mainland Europe.

Electricity sales in the first half of 2008 were 7% higher than in 2007 following the mild winter experienced throughout Europe last year and this was the primary reason for Energy profits rising to £4.4m from £3.0m last year. Imported electricity met 94% of our requirements during the half year, which was slightly lower than usual as a result of periodic production from our own plant to prove its capability to fully meet the Island's electricity requirements in the event of a loss of power imports from the Continent. 

Our Retailing business continued last year's trend of strong growth, with year-on-year turnover rising 14% and profits moving up from £0.4m to £0.5m. Profits from our Property portfolio rose from £0.8m to £0.9m which included the sale of a residential property used previously to house employees, for a capital gain of £0.4m. The Building Services business produced profits of £0.2m being at a similar level to last year. Our consultancy businesses Jersey Energy and Jendev produced profits on a par with the comparative period last year. Our data centre joint venture, Foreshore Limited, moved into profit for the first time with turnover up 30% against the same six months last year.  

Cash, including short-term investments, fell £1.3m to £15.1m during the last six months, with operating cash produced from trading activity offset by £5.6m of electricity infrastructure investment and payment of the £1.2m final 2007 dividend. 

Your Board proposes to pay an interim net dividend of 73p (2007: 49p) on the Ordinary and "A" Ordinary Shares payable on 30 June 2008 in addition to the final dividend for 2007 of 75p (2006: 68p) paid on 31 March 2008. The increase in the level of proposed dividend followed a review by the Board on the level of dividend cover maintained by other listed and Jersey utilities balanced by the required levels of capital expenditure in the short to medium term. Following a re-basing of the dividend level at the interim and final stages in 2008 your Board will aim to deliver sustained real growth thereafter.  

Responsibility statement

We confirm to the best of our knowledge:

(a) the condensed set of financial statements has been prepared in accordance with IAS 34 'Interim Financial Reporting':

(b) the Interim Management Report includes a fair review of the information required by the Disclosure and Transparency Rule DTR 4.2.7R (indication of important events during the first six months and description of principal risks and uncertainties for the remaining six months of the year); and

(c) the Interim Management Report includes a fair review of the information required by the Disclosure and Transparency Rule DTR 4.2.8R (disclosure of related party transactions and changes therein).

G.J. GRIME - Chairman    M.J.LISTON - Chief Executive        14 May 2008

INVESTOR TIMETABLE FOR 2008

Condensed Group Income Statement (Unaudited)

Condensed Group Statement of Recognised Income and Expense (Unaudited)

Condensed Group Balance Sheet (Unaudited)