Directors’ report

for the year ended 30 September 2022

The Directors present their annual report andtheauditedfinancialstatementsof Jersey Electricity plc (“the Company”) and Jersey Deep Freeze Limited (together “the Group”) for the year ended 30 September 2022.

Principal activities

The Company is the sole supplier of electricity in Jersey. It 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. It also engages in retailing, property management, building services and has other business interests, including software development and consulting.

Section 172(1) statement

We are required under the code to report on this area and it is central to our strategy to consider wider stakeholders. This is despite Section 172 of the Companies Act 2006 not being applicable to us as a Jersey incorporated company. Nevertheless, as a matter of good governance, the Board has set out how they deliver against these duties where appropriate. The Board of Jersey Electricity plc considers that they have acted in good faith and in a manner which they believe is likely to promote the continued success of the Company, forthebenefitofallitsstakeholdersas a whole. In addition to its shareholders, the Board engages with Government, local Parishes, suppliers, customers and employees. Our Vision is to ‘enable life’s essentials and inspire a zero-carbon future’ which is aligned to a key goal of the Island to achieve carbon neutrality. In addition to pursuing organic and inorganic growth, strategic focus is on building a sustainable business, product development, customer service, investing in the development of new technology and in our workforce. The Board aims to ensure that our employees work in a safe environment, receive appropriate trainingandaresufficientlyrewardedfor theirefforts.

Dividends

The Directors have declared and paid, and now recommend the following dividends in respect of the year ended 30 September 2022:

Preference dividends 5% Cumulative Participating Preference Shares at 6.5% 3.5% Cumulative Non-Participating Preference Shares at 3.5% 2022 £ 5,200 3,773 2021 £ 5,200 3,773

8,973 8,973

Ordinary dividends Ordinary and ‘A’ Ordinary Shares Interim paid at 7.60p net of tax for the year ended 30 September 2022 (2021:7.20p net of tax) 2,328,640 2,206,080 Final proposed at 10.80p net of tax for the year ended 30 September 2022 (2021: 10.20p net of tax) 3,309,120 3,124,280 5,637,760 5,330,360

Re-election of directors

All Directors seek re-election annually at each AGM.

Directors’ and officers’ insurance

During the year the Company maintained liability insurance for its Directors and Officers.

Policy on payment of creditors

It is Group policy, in respect of all of its suppliers, to settle the terms of payment when agreeing each transaction, to ensure that suppliers are made aware of the terms of payment and to abide by those terms. The number of creditor days in relation to trade creditors outstanding at the year-end was 10 days (2021: 8 days).

Substantial shareholdings

As at 20 December 2022 the Company hasbeennotifiedofthefollowing holdings of voting rights of 5% or more in its issued share capital:

Ordinary Shares

The Government of Jersey hold all of the Ordinary shares which amounts to 62% of the ordinary share capital and represents 86.4% of the total voting rights. This is held as a strategic investment in their balance sheet and not consolidated.

‘A’ Ordinary Shares

‘A’ Ordinary shares entitle the holder to 1 vote for every 100 shares held whereas the Ordinary shares carry voting rights of 1 vote for every 20 shares held. Huntress (CI) Nominees Limited is the largest shareholder of our listed shares and hold 5,382,424 ‘A’ Ordinary shares which represent 5% of the total voting rights. It is understood that the underlying owners of these shares are substantially private investors and a fund based in the Channel Islands.

Company Secretary

Lisa Floris left her position as Company Secretary on 31 October 2022. We are currently recruiting a replacement and Andrew Welsby, our HR Director, is holding this position as an interim measure.

Auditor

A resolution to re-appoint PricewaterhouseCoopers CI LLP as auditor will be proposed at the next Annual General Meeting.

BY ORDER OF THE BOARD A. WELSBY Secretary 20 December 2022