06 Jersey Case Study JEC

JEC faces significant foreign exchange
exposure to the sterling euro exchange
rate

Working with RBS International, JEC
has developed its foreign exchange
hedging policy and now benefits from
managing
bespoke solutions tailored to its needs

foreign
The policy developed with support
from RBS International is helping JEC
achieve its strategic objective of greater
currency risk
tariff stability for customers
When the Jersey Electricity Company (JEC) was seeking a The knowledge gained while spending time with JEC gave RBS
solution to help manage the impact that foreign exchange International the knowledge to go on and develop a solution
rate movements have on its business, it was RBS International’s that saw the company not only executing a structure to meet its
strategic approach that attracted the company’s attention. short-term needs, but also a longer-term strategy designed to
help JEC deliver greater control and certainty over tariff pricing
The sole provider of electricity in Jersey, JEC’s supplies come in the future.
primarily from a French company. This means that as well as
dealing with the challenges that changes in wholesale power
prices pose, the company also has to manage currency
“I would like to acknowledge the efforts of
fluctuations as supplies are paid for in euros.
RBS International in helping us refresh and
rethink our foreign exchange hedging strategy.
As part of a drive to achieve greater tariff stability, JEC wanted
to develop a foreign exchange strategy to work alongside its
I look forward to continuing to work closely
policy on power pricing. To achieve this, the company sought together in the delivery, development and
proposals from a number of banks.
execution of this programme in the future.”
What made RBS International’s approach stand out was its clear
Martin Magee Chief Financial Officer, Jersey Electricity Company
commitment to understanding JEC’s needs and investing in creating
a strategy and solutions tailored to meet these. Instead of simply
delivering a product, the Jersey-based specialists underlined
the emphasis they place on strength of service. Working together
with experts in this field from RBS Group in London, they not
only developed real insight into JEC’s immediate requirements
but also its wider attitude towards risk management.
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