Edison Investment Research - Jersey Electricity PLC (JEL) Jersey Electricity - Updated modelling of net zero implications

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Edison Investment Research

Toby Thorrington

Jersey Electricity - Updated modelling of net zero implications

Jersey Electricity (JEL) has consistently delivered a 5% increase in its DPS, which we expect to continue. Its cautious approach to financial risks means its wholesale electricity market-based exposure is materially hedged until FY25, which helps maintain relative price stability for its customers. It has a strong balance sheet, with cash of £43.1m, and its grid infrastructure is well invested. Electrification of Jersey’s heating and transport systems to achieve the government’s net zero ambitions provides an opportunity for growth. Based on our detailed modelling and the government of Jersey’s (GoJ’s) consultation draft of the Carbon Neutral Roadmap, we estimate full electrification of these two areas could increase electricity demand by 454GWh pa (454m units of electricity), representing a 71% increase on the 639m units sold by JEL in FY21.

04/07/2022 1 EN

Underlying

Jersey Electricity PLC

Jersey Electricity is the sole supplier of electricity in Jersey. Co. is involved in the generation and distribution of electricity and jointly operates the Channel Islands Electricity Grid System with Guernsey Electricity Limited importing power for both islands. Co. also engages in retailing, property management, building services and has other business interests, including software development and consulting. Co.'s business segments are: energy; building services; retail; property; as well as other segments, which includes Co.'s Jersey Energy, Jendev and Jersey Deep Freeze Limited business units.

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JE00B43SP147 London Stock Exchange United Kingdom

Provider

Edison Investment Research

Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisors and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.

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Analysts

Toby Thorrington

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Jersey Electricity - Updated modelling of net zero implications

Edison issues outlook on Jersey Electricity (JEL): Decarbonisation fuelling growth

Jersey Electricity - Decarbonisation fuelling growth

Jersey Electricity - Managing transition well

Borussia Dortmund - London calling

HELLENiQ ENERGY - Solid Q1, with a strong operational performance

Triple Point Social Housing REIT - Strong rent growth and improving rent collection

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