This item is focusing on the JEC monopoly, a utility that affects us all. The JEC were allowed to increase charges by 24% against an economic backdrop of few wage increases and a figure of 1,000 unemployed.
A company that by its own admission has been making millions every year for decades. So with this large hike in the cost of electricity why are its profits down.
Is the downturn for the company about electricity or retailing ?
A good friend checked out a 32in flat screen from their showroom and purchased it from an on-line supplier. I suggested he at least give them a chance to equal the £65-00 he would save, buy local.
No chance based on the fact that they had ripped him off for profit and to pay shareholders dividends, he had not had a pay rise for 18 months, stuff them, came the response.
The massive increase goes a lot further of course for people who are trying to make a living like that cosy restaurant that has to be heated, the butcher with big fridge's the hairdresser with expensive hair-dryer and water to heat. None of these businesses can re-coop such as massive increase in a basic utility cost but their prices must go up, so you and I pick up the increase. Lets not also forget the pensioners huddled around a small fire at this cold time of year. I am afraid I have a leaning not to give them my business and so it seems many others now feel the same way.
It has emerged that they are going to drop the electricity charges by 5% but there is another hidden factor here so just a 19% increase.
There is absolutely nothing wrong with owning shares, millions of people do. Is it not strange that the shareholders of the JEC are hidden from view by holding companies and other vehicles designed for secrecy, for what purpose on a small island ?
Maybe with such a greedy rise in basic electricity, and for all the spin they have given us, the islanders are using their feet to exact revenge on their retailing operation.
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JEP.
JERSEY Electricity has reported lower profits to the end of September this year compared with the previous 12 months.
Pre-tax profit from operations fell by ten per cent to £9.27 million compared with £10.26 million for 2008.
This was in spite of a 14 per cent increase in turnover. The results, approved at a board meeting on 17 December, reflect lower interest received and the absence of property gains and revaluations which accrued in the previous year.
Deposit interest was only £0.5 million – as a result of the decline in base rate – compared with £1.1 million in 2008.
Article posted on 24th December, 2009 - 3.00pm
http://www.thisisjersey.com/2009/12/24/profits-drop-for-jersey-electricity/Boatyboy
