Exhibit 1.3





MANAGEMENT’S RESPONSIBILITY FOR FINANCIAL REPORTING



The accompanying consolidated financial statements of Just Energy
Group Inc. and all the information in this annual report are the responsibility of management and have been approved by the Board
of Directors.



The consolidated financial statements have been prepared by
management in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board.
The consolidated financial statements include some amounts that are based on estimates and judgments. Management has determined
such amounts on a reasonable basis in order to ensure that the consolidated financial statements are presented fairly, in all material
respects. Financial information presented elsewhere in this annual report has been prepared on a consistent basis with that in
the consolidated financial statements.



Just Energy Group Inc. maintains systems of internal accounting
and administrative controls. These systems are designed to provide reasonable assurance that the financial information is relevant,
reliable and accurate and that the Company assets are properly accounted for and adequately safeguarded.



The Board of Directors is responsible for ensuring that management
fulfills its responsibilities for financial reporting and is ultimately responsible for reviewing and approving the consolidated
financial statements. The Board carries out this responsibility principally through its Audit Committee.



The Audit Committee is appointed by the Board of Directors and
is composed entirely of non-management directors. The Audit Committee meets periodically with management and the external auditors,
to discuss auditing, internal controls, accounting policy and financial reporting matters. The committee reviews the consolidated
financial statements with both management and the external auditors and reports its findings to the Board of Directors before such
statements are approved by the Board.



The consolidated financial statements have been audited by Ernst
& Young LLP, the external auditors, in accordance with Canadian generally accepted auditing standards and the standards of
the Public Company Accounting Oversight Board (United States) on behalf of the shareholders. The external auditors have full and
free access to the Audit Committee, with and without the presence of management, to discuss their audit and their findings as to
the integrity of the financial reporting and the effectiveness of the system of internal controls.



On behalf of Just Energy Group Inc.





|/s/ Pat McCullough      |  | /s/ Jim Brown          
|----------------------- |  | -----------------------
|                        |  |                        
|Pat McCullough          |  | Jim Brown              
|                        |  |                        
|Chief Executive Officer |  | Chief Financial Officer







Toronto, Canada



May 15, 2019











MANAGEMENT’S REPORT ON INTERNAL CONTROL OVER FINANCIAL
REPORTING



The management of Just Energy Group Inc. (“the Company”)
is responsible for establishing and maintaining adequate internal control over financial reporting, and has designed such internal
control over financial reporting to provide reasonable assurance regarding the reliability of financial reporting and the preparation
of financial statements for external purposes in accordance with International Financial Reporting Standards as issued by the International
Accounting Standards Board.



Management has used “Internal Control – Integrated
Framework” to evaluate the effectiveness of internal control over financial reporting, which is a recognized and suitable
framework developed by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (COSO). Because of
its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections
of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes
in conditions, or that the degree of compliance with the policies or procedures may deteriorate.



Management has evaluated the design and operation of the Company’s
internal control over financial reporting as of March 31, 2019, and has concluded that such internal control over financial reporting
is effective.



Ernst & Young LLP, the independent auditors appointed by
the shareholders of the Company who have audited the consolidated financial statements, have also audited internal control over
financial reporting and have issued their report on the following page of this annual report.







|/s/ Pat McCullough      |  | /s/ Jim Brown          
|----------------------- |  | -----------------------
|                        |  |                        
|Pat McCullough          |  | Jim Brown              
|                        |  |                        
|Chief Executive Officer |  | Chief Financial Officer







Toronto, Canada



May 15, 2019











REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM



To the Shareholders and the Board of Directors of Just Energy
Group Inc.



Opinion on Internal Control over Financial Reporting



We have audited Just Energy Group Inc.’s internal control
over financial reporting as of March 31, 2019, based on criteria established in Internal Control-Integrated Framework issued by
the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (“COSO criteria”). In our opinion,
Just Energy Group Inc. maintained, in all material respects, effective internal control over financial reporting as of March 31,
2019, based on the COSO criteria.



We also have audited, in accordance with the standards of the
Public Company Accounting Oversight Board (United States) (“PCAOB”), the consolidated statements of financial position
as of March 31, 2019 and 2018, and the related consolidated statements of income (loss), comprehensive income (loss), changes in
shareholders’ equity and cash flows for the years then ended and the related notes and our report dated May 15, 2019 expressed
an unqualified opinion thereon.



Basis for Opinion



Just Energy Group Inc.’s management is responsible for
maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control
over financial reporting included in the accompanying Management’s Discussion and Analysis. Our responsibility is to express
an opinion on Just Energy Group Inc.’s internal control over financial reporting based on our audit. We are a public accounting
firm registered with the PCAOB and are required to be independent with respect to Just Energy Group Inc. in accordance with U.S.
federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.



We conducted our audit in accordance with the standards of the
PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal
control over financial reporting was maintained in all material respects.



Our audit included obtaining an understanding of internal control
over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness
of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances.
We believe that our audit provides a reasonable basis for our opinion.



Definition and Limitations of Internal Control Over Financial
Reporting



A company’s internal control over financial reporting
is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial
statements for external purposes in accordance with International Financial Reporting Standards as issued by the International
Accounting Standards Board. A company’s internal control over financial reporting includes those policies and procedures
that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions
of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation
of financial statements in accordance with International Financial Reporting Standards as issued by the International Accounting
Standards Board, and that receipts and expenditures of the company are being made only in accordance with authorizations of management
and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition,
use, or disposition of the company’s assets that could have a material effect on the financial statements.





Because of its inherent limitations, internal control over financial
reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject
to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies
or procedures may deteriorate.











Toronto, Canada



May 15, 2019











REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM



To the Shareholders and the Board of Directors of Just Energy
Group Inc.



Opinion on the Consolidated Financial Statements



We have audited the accompanying consolidated statements of
financial position of Just Energy Group Inc. as of March 31, 2019 and 2018, and the related consolidated statements of income (loss),
comprehensive income (loss), changes in shareholders’ equity and cash flows for each of the two years in the period ended
March 31, 2019 and the related notes (collectively referred to as the “consolidated financial statements”). In our
opinion, the consolidated financial statements present fairly, in all material respects, the financial position of Just Energy
Group Inc. at March 31, 2019 and 2018, and its financial performance and its cash flows for the years then ended, in conformity
with International Financial Reporting Standards (IFRSs) as issued by the International Accounting Standards Board.



Adoption of New Accounting Standards



As discussed in Note 7 to the consolidated financial statements,
Just Energy Group Inc. changed its method of accounting for Revenue and Financial Instruments in 2019 due to the adoption of IFRS
15, Revenue from Contracts with Customers and IFRS 9, Financial Instruments.



Report on Internal Control over Financial Reporting



We also have audited, in accordance with the standards of the
Public Company Accounting Oversight Board (United States) (“PCAOB”), Just Energy Group Inc.’s internal control
over financial reporting as of March 31, 2019, based on criteria established in Internal Control-Integrated Framework (2013) issued
by the Committee of Sponsoring Organization of the Treadway Commission (“COSO”) and our report dated May 15, 2019 expressed
an unqualified opinion on the effectiveness of Just Energy Group Inc.’s internal control over financial reporting.



Basis for Opinion



These consolidated financial statements are the responsibility
of Just Energy Group Inc.’s management. Our responsibility is to express an opinion on Just Energy Group Inc.’s consolidated
financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent
with respect to Just Energy Group Inc. in accordance with the U.S. federal securities laws and the applicable rules and regulations
of the Securities and Exchange Commission and the PCAOB.



We conducted our audits in accordance with the standards of
the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated
financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures
to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing
procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and
disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant
estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe
that our audits provide a reasonable basis for our opinion.







We have served as Just Energy Group Inc.’s auditor since
2011



Toronto, Canada



May 15, 2019













JUST
ENERGY GROUP INC.CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

As at March 31 (in thousands of Canadian dollars)







Notes
    2019
    2018ASSETSCurrent assetsCash and cash equivalents
    
    $9,927
    $48,861Restricted cash
    
    4,048
    3,515Trade and other receivables
    9
    783,780
    658,844Gas in storage
    
    2,943
    2,342Fair value of derivative financial assets
    14
    144,512
    218,769Income taxes recoverable
    
    18,973
    5,617Other current assets
    10
    169,240
    112,2141,133,423
    1,050,162Non-current assetsInvestments
    11
    36,897
    36,314Property and equipment, net
    12
    25,862
    18,893Intangible assets, net
    13
    472,656
    401,926Fair value of derivative financial assets
    14
    9,255
    64,662Deferred income tax assets
    21
    9,492
    9,449Other non-current assets
    10
    49,512
    19,987603,674
    551,231Assets classified as held for sale
    18
    8,971
    -612,645
    551,231TOTAL ASSETS
    
    $1,746,068
    $1,601,393LIABILITIESCurrent liabilitiesTrade and other payables
    15
    $714,110
    $590,018Deferred revenue
    16
    43,228
    38,710Income taxes payable
    
    11,895
    5,486Fair value of derivative financial liabilities
    14
    79,387
    86,288Provisions
    20
    7,205
    4,714Current portion of long-term debt
    19
    37,429
    121,451893,254
    846,667Non-current liabilitiesLong-term debt
    19
    687,943
    422,053Fair value of derivative financial liabilities
    14
    63,658
    51,871Deferred income tax liabilities
    21
    4,124
    6,918Other non-current liabilities
    
    61,339
    57,349817,064
    538,191Liabilities relating to assets classified as held for sale
    18
    5,200
    -822,264
    538,191TOTAL LIABILITIES
    
    1,715,518
    1,384,858SHAREHOLDERS' EQUITYShareholders’ capital
    22
    1,235,503
    1,215,826Equity component of convertible debentures
    
    13,029
    13,029Contributed deficit
    
    (25,540)
    (22,693)Accumulated deficit
    
    (1,271,136)
    (1,081,139)Accumulated other comprehensive income
    
    79,093
    91,934Non-controlling interest
    
    (399)
    (422)TOTAL SHAREHOLDERS' EQUITY
    
    30,550
    216,535TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
    
    $1,746,068
    $1,601,393












Commitments and Guarantees (Note 31)





See accompanying notes to the consolidated financial statements





Approved on behalf of Just Energy Group Inc.



|/s/
    Rebecca MacDonald |  | /s/
    H. Clark Hollands | 
|------------------------- |  | ------------------------- | 
|Rebecca MacDonald         |  | H. Clark Hollands         | 
|Executive Chair           |  | Corporate Director        | 

1.







JUST
ENERGY GROUP INC.
CONSOLIDATED STATEMENTS OF INCOME (LOSS)
FOR THE YEARS ENDED MARCH 31(in thousands of Canadian dollars, except where indicated and per share amounts)





Notes
    2019
    2018CONTINUING OPERATIONSSales
    24
    $3,812,470
    $3,623,558Cost of sales
    
    3,100,255
    2,983,047GROSS MARGIN
    
    712,215
    640,511EXPENSESAdministrative
    
    206,820
    187,250Selling and marketing
    
    232,030
    232,228Other operating expenses
    25(a)
    115,016
    95,304Restructuring costs
    20
    16,078
    -569,944
    514,782Operating profit before the following
    
    142,271
    125,729Finance costs
    19
    (88,072)
    (55,972)Change in fair value of derivative instruments and other
    14
    (153,226)
    474,393Other income, net
    17
    1,365
    1,040Profit (loss) before income taxes
    
    (97,662)
    545,190Provision for income taxes
    21
    2,829
    20,671PROFIT (LOSS) FROM CONTINUING OPERATIONS
    
    $(100,491)
    $524,519DISCONTINUED OPERATIONSLoss from discontinued operations
    18
    (22,379)
    (5,945)PROFIT (LOSS) FOR THE YEAR
    
    $(122,870)
    $518,574Attributable to:Shareholders of Just Energy
    
    $(122,678)
    $509,276Non-controlling interest
    
    (192)
    9,298PROFIT (LOSS) FOR THE YEAR
    
    $(122,870)
    $518,574Earnings (loss) per share from continuing operations
    27Basic
    
    $(0.73)
    $3.45Diluted
    
    $(0.73)
    $2.65Loss per share from discontinued operations
    18Basic
    
    $(0.15)
    $(0.03)Diluted
    
    $(0.15)
    $(0.03)Earnings (loss) per share available to shareholders
    27Basic
    
    $(0.88)
    $3.42Diluted
    
    $(0.88)
    $2.62






See accompanying notes to the consolidated financial statements







2.







JUST
ENERGY GROUP INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
FOR THE YEARS ENDED MARCH 31(in thousands of Canadian dollars)





2019
    2018PROFIT (LOSS) FOR THE YEAR
    $(122,870)
    $518,574Other comprehensive income to be reclassified to profit or loss in subsequent years:Unrealized gain on translation of foreign operations from continuing operations
    4,217
    2,843Unrealized gain on translation of foreign operations from discontinued operations
    805
    867Unrealized gain on revaluation of investment, net of tax
    -
    17,8635,022
    21,573TOTAL COMPREHENSIVE INCOME (LOSS) FOR THE YEAR, NET OF TAX
    $(117,848)
    $540,147Total comprehensive income (loss) attributable to:Shareholders of Just Energy
    $(117,656)
    $530,849Non-controlling interest
    (192)
    9,298TOTAL COMPREHENSIVE INCOME (LOSS) FOR THE YEAR, NET OF TAX
    $(117,848)
    $540,147






See accompanying notes to the consolidated financial statements





3.







JUST
ENERGY GROUP INC.
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
FOR THE YEARS ENDED MARCH 31(in thousands of Canadian dollars)





Notes
    2019
    2018ATTRIBUTABLE TO THE SHAREHOLDERSAccumulated earningsAccumulated earnings, beginning of year
    
    $754,639
    $259,571Adjustment for revision
    5
    -
    (14,208)Adjustment for adoption of recent accounting pronouncements
    7
    20,711
    -Profit (loss) for the period, attributable to shareholders
    
    (122,678)
    509,276Accumulated earnings, end of year
    
    652,672
    754,639DIVIDENDS AND DISTRIBUTIONSDividends and distributions, beginning of year
    
    (1,835,778)
    (1,749,471)Dividends and distributions declared and paid
    30
    (88,030)
    (86,307)Dividends and distributions, end of year
    
    (1,923,808)
    (1,835,778)DEFICIT
    
    $(1,271,136)
    $(1,081,139)ACCUMULATED OTHER COMPREHENSIVE INCOMEAccumulated other comprehensive income, beginning of year
    
    $91,934
    $70,361Adjustment for adoption of recent accounting pronouncements
    7
    (17,863)
    -Other comprehensive income
    
    5,022
    21,573Accumulated other comprehensive income, end of year
    
    $79,093
    $91,934SHAREHOLDERS’ CAPITAL
    22Common sharesCommon shares, beginning of year
    
    $1,079,055
    $1,070,076Share-based units exercised
    
    9,483
    11,954Acquisition of businesses
    17
    -
    8,966Repurchase and cancellation of shares
    
    -
    (11,941)Common shares, end of year
    
    $1,088,538
    $1,079,055Preferred sharesPreferred shares, beginning of year
    
    $136,771
    $128,363Shares issued
    22
    10,447
    9,260Shares issuance costs
    
    (253)
    (852)Preferred shares, end of year
    
    146,965
    136,771SHAREHOLDERS’ CAPITAL
    
    $1,235,503
    $1,215,826EQUITY COMPONENT OF CONVERTIBLE DEBENTURESBalance, beginning of year
    
    $13,029
    $13,508Add: Issuance of convertible debentures
    19(d)
    -
    7,130Less: Redemption of convertible debentures
    19(g)
    -
    (7,609)Balance, end of year
    
    $13,029
    $13,029CONTRIBUTED SURPLUS (DEFICIT)Balance, beginning of year
    
    $(22,693)
    $58,266Add:    Share-based compensation expense
    25(a)
    6,133
    18,353Redemption of convertible debentures
    19(e)
    -
    7,126Non-cash deferred share grant distributions
    
    72
    45Less:    Purchase of non-controlling interest
    
    1,462
    (89,010)Share-based units exercised
    
    (9,483)
    (11,954)Share-based compensation adjustment
    
    (1,031)
    (5,519)Balance, end of year
    
    $(25,540)
    $(22,693)NON-CONTROLLING INTERESTBalance, beginning of year
    
    $(422)
    $-Distributions to non-controlling shareholders
    
    -
    (9,603)Foreign exchange impact on non-controlling interest
    
    215
    (117)Profit (loss) attributable to non-controlling interest
    
    (192)
    9,298Balance, end of year
    
    $(399)
    $(422)TOTAL SHAREHOLDERS' EQUITY
    
    $30,550
    $216,535






See accompanying notes to the consolidated financial statements

4.







JUST
ENERGY GROUP INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED MARCH
31

(in
thousands of Canadian dollars)





Net inflow (outflow) of cash related to the following activities
    Notes
    2019
    2018OPERATINGProfit (loss) from continuing operations before income taxes
    
    $(97,662)
    $545,190Loss from discontinued operations before income taxes
    18
    (22,375)
    (5,942)Profit (loss) before income taxes
    
    (120,037)
    539,248Items not affecting cashAmortization of intangible assets
    25(a)
    22,655
    16,547Depreciation of property and equipment
    25(a)
    4,771
    4,073Amortization included in cost of sales
    
    2,666
    3,116Share-based compensation
    25(a)
    6,133
    18,353Financing charges, non-cash portion
    
    18,223
    14,547Other
    
    (110)
    (369)Change in fair value of investments
    
    -
    1,289Change in fair value of derivative instruments and other
    14
    153,226
    (474,393)Adjustment required to reflect net cash receipts from gas sales
    32(a)
    4,186
    (2,876)Net change in working capital balances
    32(b)
    (124,138)
    (36,425)Adjustment for non-cash discontinued operations
    
    405
    231Income taxes paid
    
    (12,435)
    (21,319)Cash inflow (outflow) from operating activities
    
    (44,455)
    62,022INVESTINGPurchase of property and equipment
    
    (5,159)
    (4,838)Purchase of intangible assets
    
    (38,383)
    (30,938)Acquisition of businesses
    
    (4,281)
    (10,832)Short-term investments
    
    -
    25,532Cash outflow from investing activities
    
    (47,823)
    (21,076)FINANCINGDividends paid
    30
    (87,959)
    (86,261)Repayment of long-term debt
    
    (173,366)
    (100,000)Issuance of long-term debt
    
    253,242
    100,000Share swap payout
    
    (10,000)
    -Debt issuance costs
    
    (18,132)
    (4,115)Credit facilities withdrawal
    
    79,462
    53,857Issuance of preferred shares
    
    10,447
    9,260Preferred shares issuance costs
    
    (352)
    (2,114)Shares repurchase
    
    -
    (11,941)Distributions to non-controlling interest
    
    -
    (9,603)Cash inflow (outflow) from financing activities
    
    53,342
    (50,917)Effect of foreign currency translation on cash balances
    
    2
    1,456Net cash outflow
    
    (38,934)
    (8,515)Cash and cash equivalents, beginning of year
    
    48,861
    57,376Cash and cash equivalents, end of year
    
    $9,927
    $48,861Supplemental cash flow information:Interest paid
    
    $52,836
    $38,551






See accompanying notes to the consolidated financial statements



5.


JUST ENERGY GROUP INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED MARCH 31, 2019(in thousands of Canadian dollars, except where indicated and per share amounts)






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1.ORGANIZATION  Just Energy Group Inc. (“JEGI”,
“Just Energy” or the “Company”) is a corporation established under the laws of Canada to hold securities
and to distribute the income of its directly or indirectly owned operating subsidiaries and affiliates. The registered office of
Just Energy is First Canadian Place, 100 King Street West, Toronto, Ontario, Canada. The consolidated financial statements consist
of Just Energy and its subsidiaries and affiliates. The consolidated financial statements were approved by the Board of Directors
on May 15, 2019.






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2.OPERATIONS   Just Energy is a leading consumer
company focused on essential needs, including electricity and natural gas commodities; on health and well-being, through products
such as water quality and filtration devices; and on utility conservation, bringing energy efficient solutions and renewable energy
options to consumers. Currently operating in the United States (“U.S.”), Canada and the United Kingdom (“U.K.”),
Just Energy serves residential and commercial customers. Just Energy is the parent company of Amigo Energy, EdgePower Inc., Filter
Group Inc., Green Star Energy, Hudson Energy, Interactive Energy Group, Just Energy Advanced Solutions, Tara Energy and TerraPass.  Just Energy’s current
commodity product offerings include fixed, variable, index and flat rate options. By fixing the price of natural gas or electricity
under its fixed-price or price-protected program contracts for a period of up to five years, Just Energy’s customers offset
their exposure to changes in the price of these essential commodities. Variable rate products allow customers to maintain competitive
rates while retaining the ability to lock into a fixed price at their discretion. Flat-bill products allow customers to pay a flat
rate each month regardless of usage. Just Energy derives its margin or gross profit from the difference between the price at which
it is able to sell the commodities to its customers and the related price at which it purchases the associated volumes from its
suppliers.   Through the Filter Group business acquired by Just Energy
on October 1, 2018, Just Energy provides subscription-based, home water filtration systems to residential customers, including
under-counter and whole-home water filtration solutions. In addition, Just Energy markets smart thermostats, offering the thermostats
as a stand-alone unit or bundled with certain commodity products. The smart thermostats are currently manufactured and distributed
by ecobee Inc. (“ecobee”), a company in which Just Energy holds a 8% fully diluted equity interest. Just Energy also
offers green products through its JustGreen program. The JustGreen electricity product offers customers the option of having all
or a portion of their electricity sourced from renewable green sources such as wind, solar, hydropower or biomass. The JustGreen
gas product offers carbon offset credits that allow customers to reduce or eliminate the carbon footprint of their homes or businesses.
Additional green products allow customers to offset their carbon footprint without buying energy commodity products and can be
offered in all states and provinces without being dependent on energy deregulation. Just Energy also provides energy management
solutions to both Consumer and Commercial customers in the form of value added products and services which include, but are not
limited to, LED retrofit lighting and HVAC controls, as well as enterprise monitoring.   Just Energy markets its product
offerings through several sales channels including brokers, online marketing, retail and affinity relationships, and door-to-door.   In March 2019, Just Energy formally approved and commenced
a process to dispose of its businesses in Germany, Ireland and Japan. The decision was part of a strategic transition to focus
on the core business in North America and the U.K. The disposal of the operations is expected to be completed within the next 12
months. At March 31, 2019, these operations were classified as a disposal group held for sale and as a discontinued operation.
Previously, these operations were reported within the Consumer segment.






6.


JUST ENERGY GROUP INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED MARCH 31, 2019(in thousands of Canadian dollars, except where indicated and per share amounts)






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3.BASIS OF PRESENTATION  (a)Compliance with IFRS  The consolidated
financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as
issued by the International Accounting Standards Board (“IASB”). The policies applied in these consolidated financial
statements were based on IFRS issued and outstanding as at March 31, 2019.  The consolidated
financial statements are presented in Canadian dollars, the functional currency of Just Energy, and all values are rounded to the
nearest thousand, except where indicated. The Company’s consolidated financial statements are prepared on the historical
cost basis of accounting, except as disclosed in the accounting policies set out below.  (b)Principles of consolidation  The consolidated
financial statements include the accounts of Just Energy and its directly or indirectly owned subsidiaries as at March 31, 2019.
Subsidiaries are consolidated from the date of acquisition and control, and continue to be consolidated until the date that such
control ceases. Control is achieved when the Company is exposed, or has rights, to variable returns from its involvement with the
investee and has the ability to affect these returns through its power over the investee. The financial statements of the subsidiaries
are prepared for the same reporting period as Just Energy, using consistent accounting policies. All intercompany balances, income,
expenses, and unrealized gains and losses resulting from intercompany transactions are eliminated on consolidation.  (c)Comparative consolidated financial statements   Certain figures in the comparative
consolidated financial statements have been reclassified from statements previously presented to conform to the presentation of
the current year’s consolidated financial statements. This includes consolidating the unbilled revenues with trade receivables
and separating out the discontinued operations’ results from prior fiscal years. The changes were made to consolidate line
items that are alike in nature and for comparability of results.






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4.SIGNIFICANT ACCOUNTING POLICIES  Cash
and cash equivalents and restricted cash  All highly
liquid temporary cash investments with an original maturity of three months or less when purchased are considered to be cash equivalents.
For the purpose of the consolidated statements of cash flows, cash and cash equivalents consist of cash and cash equivalents as
defined above, net of outstanding bank overdrafts.  Restricted
cash includes cash and cash equivalents, where the availability of funds is restricted by debt arrangements or held in escrow as
part of prior acquisition agreements.  7.
 JUST ENERGY GROUP INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED MARCH 31, 2019(in thousands of Canadian dollars, except where indicated and per share amounts)
   Accrued
gas receivable/accrued gas payable or gas delivered in excess of consumption/deferred revenue  Accrued gas
receivable from Just Energy’s customers is stated at fair value and results from customers consuming more gas than has been
delivered by Just Energy to local distribution companies (“LDCs”). Accrued gas payable represents Just Energy’s
obligation to the LDCs for the customers’ excess consumption, over what was delivered to the LDCs.  Gas delivered
to LDCs in excess of consumption by customers is stated at the lower of cost and net realizable value. Collections from customers
in advance of their consumption of gas result in deferred revenue.  Assuming
normal weather and consumption patterns, during the winter months, customers will have consumed more than was delivered, resulting
in the recognition of accrued gas receivable/accrued gas payable. In the summer months, customers will have consumed less than
what was delivered, resulting in the recognition of gas delivered in excess of consumption/deferred revenue.  These adjustments
are applicable solely to the Ontario, Manitoba, Quebec, Saskatchewan and Michigan gas markets.  Gas
in storage  Gas in storage
represents the gas delivered to the LDCs in Illinois, Indiana, New York, Ohio, Georgia, Maryland, California and Alberta. The balance
will fluctuate as gas is injected into or withdrawn from storage.  Gas in storage
is valued at the lower of cost and net realizable value, with cost being determined on a weighted average basis. Net realizable
value is the estimated selling price in the ordinary course of business.   Property
and equipment (“P&E”)  Property
and equipment are stated at cost, net of any accumulated depreciation and impairment losses. Cost includes the purchase price and,
where relevant, any costs directly attributable to bringing the asset to the location and condition necessary and/or the present
value of all dismantling and removal costs. Where major components of property and equipment have different useful lives, the components
are recognized and depreciated separately. Just Energy recognizes, in the carrying amount, the cost of replacing part of an item
when the cost is incurred and if it is probable that the future economic benefits embodied in the item can be reliably measured.
When significant parts of property and equipment are required to be replaced at intervals, Just Energy recognizes such parts as
individual assets with specific useful lives and depreciates them accordingly. Likewise, when a major inspection is performed,
its cost is recognized in the carrying amount of the equipment as a replacement if the recognition criteria are satisfied. All
other repair and maintenance costs are recognized in the consolidated statements of income (loss) as a general and administrative
expense when incurred. Depreciation is provided over the estimated useful lives of the assets as follows:   8.
 JUST ENERGY GROUP INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED MARCH 31, 2019(in thousands of Canadian dollars, except where indicated and per share amounts)
   Asset category
    Depreciation method
    Rate/useful lifeFurniture and fixtures
    Declining balance
    20%Office equipment
    Declining balance
    20%Computer equipment
    Declining balance
    30%Leasehold improvements
    Straight-line
    Term of leaseThermostats
    Straight-line
    5 yearsInstalled assets (water filtration)
    Straight-line
    4-7 years
  An item of property and equipment
and any significant part initially recognized is derecognized upon disposal or when no future economic benefits are expected from
its use or disposal. Any gain or loss arising on derecognition of the asset is included in the consolidated statements of income
(loss).  The useful
lives and methods of depreciation are reviewed at each financial year-end and adjusted prospectively, if appropriate.  Business
combinations  All identifiable assets acquired and liabilities assumed are measured at the acquisition date at fair
value. The Company records all identifiable intangible assets including identifiable assets that had not been recognized by the
acquiree before the business combination. Any excess of the cost of acquisition over the Company’s share of the net fair
value of the identifiable assets acquired and liabilities assumed is recorded as goodwill. During the measurement period (which
is within one year from the acquisition date), Just Energy may adjust the amounts recognized at the acquisition date to reflect
new information obtained about facts and circumstances that existed as of the acquisition date. Adjustments related to facts and
circumstances that did not exist as at the consolidated statement of financial position dates are taken to the consolidated statements
of income (loss). The Company records acquisition-related costs as expenses in the periods in which the costs are incurred with
the exception of certain costs relating to registering and issuing debt or equity securities which are accounted for as part of
the financing. Non-controlling interest is recognized at its proportionate share of the fair value of identifiable assets and liabilities,
unless otherwise indicated.  Goodwill  Goodwill
is initially measured at cost, which is the excess of the cost of the business combination over Just Energy’s share in the
net fair value of the acquiree’s identifiable assets, liabilities and contingent liabilities. Any negative difference is
recognized directly in the consolidated statements of income (loss).  After
initial recognition, goodwill is measured at cost, less impairment losses. For the purpose of impairment testing, goodwill is allocated
to each of Just Energy’s operating segments that are expected to benefit from the synergies of the combination, irrespective
of whether other assets and liabilities of the acquiree are assigned to those segments.  Intangible
assets  Intangible
assets acquired outside of a business combination are measured at cost on initial recognition. Intangible assets acquired in a
business combination are recorded at fair value on the date of acquisition. Following initial recognition, intangible assets are
carried at cost less any accumulated amortization and/or accumulated impairment losses. 9.
 JUST ENERGY GROUP INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED MARCH 31, 2019(in thousands of Canadian dollars, except where indicated and per share amounts)
   Intangible
assets with finite useful lives are amortized over the useful economic life and assessed for impairment whenever there is an indication
that the intangible asset may be impaired. The amortization method and amortization period of an intangible asset with a finite
useful life are reviewed at least annually. Changes in the expected useful life or the expected pattern of consumption of future
economic benefits embodied in the asset are accounted for by changing the amortization period or method, as appropriate, and are
treated as changes in accounting estimates. The amortization expense related to intangible assets with finite lives is recognized
in the consolidated statements of income (loss) in the expense category associated with the function of the intangible assets.
Intangible assets consist of gas customer contracts, electricity customer contracts, sales network, brand and goodwill, acquired
through business combinations and asset purchases, as well as software, commodity billing and settlement systems and information
technology system development.  Internally
generated intangible assets are capitalized when the product or process is technically and commercially feasible, the future economic
benefit is measurable, Just Energy can demonstrate how the asset will generate future economic benefits and Just Energy has sufficient
resources to complete development. The cost of an internally generated intangible asset comprises all directly attributable costs
necessary to create, produce and prepare the asset to be capable of operating in the manner intended by management.  The goodwill
and certain brands are considered to have indefinite lives and are not amortized, rather tested annually for impairment. The assessment
of indefinite life is reviewed annually. The Filter Group brand is treated as a finite life asset and amortized due to its history
of rebranding.  Gains or
losses arising from disposal of an intangible asset are measured as the difference between the net disposal proceeds and the carrying
amount of the asset, and are recognized in the consolidated statements of income (loss) when the asset is derecognized.  Intangible asset category
    Amortization method
    Rate/useful lifeCustomer contracts
    Straight-line
    Term of contractContract relationships
    Straight-line
    Term of contractCommodity billing and settlement system
    Straight-line
    5 yearsSales network and affinity relationships
    Straight-line
    5-8 yearsInformation technology system development
    Straight-line
    3-5 yearsSoftware
    Straight-line
    1 yearTechnology
    Straight-line
    15 yearsBrand (Filter Group)
    Straight-line
    10 years
  Impairment of non-financial
assets  Just Energy assesses whether there is an indication that an asset may be impaired at each reporting date.
If such an indication exists or when annual testing for an asset is required, Just Energy estimates the asset's recoverable amount.
The recoverable amounts of goodwill and intangible assets with an indefinite useful life are tested annually. The recoverable amount
is the higher of an asset's or cash-generating unit's (“CGU”) fair value less costs to sell and its value-in-use. Value-in-use
is determined by discounting estimated future pre-tax cash flows using a pre-tax discount rate that reflects the current market
assessment of the time value of money and the specific risks of the asset. The recoverable amount of assets that do not generate
independent cash flows is determined based on the CGU to which the asset belongs. 10.
 JUST ENERGY GROUP INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED MARCH 31, 2019(in thousands of Canadian dollars, except where indicated and per share amounts)
   An impairment
loss is recognized if an asset's carrying amount or that of the CGU to which it is allocated is higher than its recoverable amount.
Impairment losses of CGUs are first charged against the value of assets in proportion to their carrying amount.  In the consolidated
statements of income (loss), an impairment loss is recognized in the expense category associated with the function of the impaired
asset.  For assets
excluding goodwill, an assessment is made at each reporting date as to whether there is any indication that previously recognized
impairment losses may no longer exist or may have decreased. If such indication exists, Just Energy estimates the asset’s
or CGU’s recoverable amount. A previously recognized impairment loss is reversed only if there has been a change in the assumptions
used to determine the asset’s recoverable amount since the last impairment loss was recognized. The reversal is limited so
that the carrying amount of the asset does not exceed its recoverable amount, nor exceed the carrying amount that would have been
determined, net of amortization, had no impairment loss been recognized for the asset in prior years. Such a reversal is recognized
in the consolidated statements of income (loss).  Goodwill
is tested for impairment annually and when circumstances indicate that the carrying value may be impaired. Goodwill is tested at
the segment level as that is the lowest level at which goodwill is monitored. Impairment is determined for goodwill by assessing
the recoverable amount of each segment to which the goodwill relates. Where the recoverable amount of the segment is less than
its carrying amount, an impairment loss is recognized. Impairment losses relating to goodwill cannot be reversed in future periods.  Leases   A lease is an arrangement whereby
the lessor conveys to the lessee, in return for a payment or series of payments, the right to use an asset for an agreed period
of time. Where Just Energy determines that the contractual provisions of a contract contain, or are, a lease and result in the
customer assuming the principal risks and rewards of ownership of the asset, the arrangement is a finance lease. Assets subject
to finance leases are not reflected as property and equipment and the net investment in the lease, represented by the present value
of the amounts due from the lessee, is recorded as a financial asset, classified as a finance lease receivable. The payments considered
to be part of the leasing arrangement are apportioned between a reduction in the lease receivable and finance lease income. The
finance lease income element of the payments is recognized using a method that results in a constant rate of return on the net
investment in each period and is reflected in financing income.   IFRS 15,
Revenue from Contracts with Customers(“IFRS 15”) requires the estimation of total consideration over the contract
term and the allocation of that consideration to all performance obligations in the contract based on their relative stand-alone
selling prices. As such, consideration is allocated towards the performance obligation related to the finance lease and commodity
revenue if a customer has a contract with Just Energy for a thermostat and electricity and/or power that was entered into at the
same time.  The determination
of whether an arrangement is or contains a lease is based on the substance of the arrangement at the inception date and whether
fulfillment of the arrangement is dependent on the use of a specific asset or assets, or the arrangement conveys a right to use
the asset.  Just
Energy as a lessee  Operating
lease payments are recognized as an expense in the consolidated statements of income (loss) on a straight-line basis over the lease
term. 11.
 JUST ENERGY GROUP INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED MARCH 31, 2019(in thousands of Canadian dollars, except where indicated and per share amounts)
   Just
Energy as a lessor  Leases where
Just Energy does not transfer substantially all the risks and benefits of ownership of the asset are classified as operating leases.
Initial direct costs incurred in negotiating an operating lease are added to the carrying amount of the leased asset and recognized
over the lease term on the same basis as rental income.  Just Energy considers itself to be a dealer lessor with respect to its lease arrangements for thermostats
as it has given the customer the choice of either buying or leasing the thermostat. A finance lease of an asset by a dealer lessor
gives rise to profit or loss equivalent to that resulting from an outright sale of the underlying asset, at normal selling prices.
Just Energy recognizes revenue based on the fair value of the thermostat at the time of completed installation of the thermostat,
at which point in time Just Energy has transferred control of the thermostat to the customer. Just Energy also recognizes the cost
of sale on the thermostat through cost of goods sold.  Financial
instruments  For comparability purposes, the accounting policies below discuss the previous financial instruments treatment
under IAS 39, Financial Instruments: Recognition and Measurement (“IAS 39”). IAS 39 was applied in fiscal 2018. For
fiscal 2019, the Company adopted IFRS 9, Financial Instruments (“IFRS 9”), as discussed in Note 7, “Accounting
Policies and New Standards Adopted”.  Financial
assets and liabilities  Just Energy classifies its financial assets as either (i) financial assets at fair value through profit
or loss, (ii) loans and receivables, (iii) other financial assets, or (iv) available for sale, and its financial liabilities as
either (i) financial liabilities at fair value through profit or loss or (ii) other financial liabilities. Appropriate classification
of financial assets and liabilities is determined at the time of initial recognition or when reclassified in the consolidated statements
of financial position.  Financial
instruments are recognized on the trade date, which is the date on which Just Energy commits to purchase or sell the asset.  Financial
assets at fair value through profit or loss  Financial
assets at fair value through profit or loss include financial assets held for trading and financial assets designated upon initial
recognition as at fair value through profit or loss. Financial assets are classified as fair value through profit or loss if they
are acquired for the purpose of selling or repurchasing in the near term. This category includes derivative financial instruments
entered into that are not designated as hedging instruments in hedge relationships as defined by IAS 39. Included in this class
are primarily physical delivered energy contracts, for which the own-use exemption could not be applied, financially settled energy
contracts and foreign currency forward contracts.  An analysis
of fair values of financial instruments and further details as to how they are measured are provided in Note 14. Related realized
and unrealized gains and losses are included in the consolidated statements of income (loss). 12.
 JUST ENERGY GROUP INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED MARCH 31, 2019(in thousands of Canadian dollars, except where indicated and per share amounts)
   Loans
and receivables  Loans and
receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Loans
and receivables are initially recognized at fair value net of transaction costs. They are subsequently measured at amortized cost
using the effective interest rate method less any impairment. The effective interest amortization is included in finance costs
in the consolidated statements of income (loss).   Financial
assets classified as available for sale  Available for sale financial assets
are held at fair value with gains and losses included in other comprehensive income. Just Energy uses this classification for assets
that are not derivatives and are not held for trading purposes or otherwise designated at fair value through profit or loss, or
at amortized cost.   Derecognition  A financial
asset is derecognized when the rights to receive cash flows from the asset have expired or when Just Energy has transferred its
rights to receive cash flows from the asset.  Impairment
of financial assets  Just Energy
assesses whether there is objective evidence that a financial asset is impaired at each reporting date. A financial asset is deemed
to be impaired if there is objective evidence of impairment as a result of one or more events that have occurred after the initial
recognition of the asset (an incurred “loss event”) and that loss event has an impact on the estimated future cash
flows that can be reliably estimated.  For significant
individual financial assets carried at amortized cost, Just Energy assesses if impairment significantly exists. Insignificant financial
assets are assessed collectively. If Just Energy determines that no objective evidence of impairment exists for an individually
assessed financial asset, it includes the asset in a group of financial assets with similar credit risk characteristics and collectively
assesses them for impairment. Assets that are individually assessed for impairment and for which an impairment loss is, or continues
to be, recognized are not included in a collective assessment of impairment.  If there
is objective evidence that an impairment loss has occurred, the amount of the loss is measured as the difference between the asset’s
carrying amount and the present value of estimated future cash flows. The present value of the estimated future cash flows is discounted
at the financial asset’s original effective interest rate.  The carrying
amount of the asset is reduced through the use of an allowance account and the amount of the loss is recognized in profit or loss.
Interest income continues to be accrued on the reduced carrying amount and is accrued using the rate of interest used to discount
the future cash flows for the purpose of measuring the impairment loss. The interest income is recorded as part of other income
in the consolidated statements of income (loss).  Loans and
receivables, together with the associated allowance, are written off when there is no realistic prospect of future recovery. If,
in a subsequent year, the amount of the estimated impairment loss increases or decreases because of an event occurring after the
impairment was recognized, the previously recognized impairment loss is increased or reduced by adjusting the allowance account.
If a write-off is later recovered, the recovery is credited to other operating costs in the consolidated statements of income (loss). 13.
 JUST ENERGY GROUP INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED MARCH 31, 2019(in thousands of Canadian dollars, except where indicated and per share amounts)
   Financial
liabilities at fair value through profit or loss  Financial
liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated
upon initial recognition as at fair value through profit or loss.  Financial
liabilities are classified as held for trading if they are acquired for the purpose of selling in the near term. This category
includes derivative financial instruments entered into by Just Energy that are not designated as hedging instruments in hedge relationships
as defined by IAS 39. Included in this class are primarily physically delivered energy contracts, for which the own-use exemption
could not be applied, financially settled energy contracts and foreign currency forward contracts.  Gains or
losses on liabilities held for trading are recognized in the consolidated statements of income (loss).  Other
financial liabilities  Other financial
liabilities are measured at amortized cost using the effective interest rate method. Financial liabilities include long-term debt
issued and are initially measured at fair value. Fair value is the consideration received, net of transaction costs incurred, trade
and other payables and bank indebtedness. Transaction costs related to the long-term debt instruments are included in the value
of the instruments and amortized using the effective interest rate method. The effective interest expense is included in finance
costs in the consolidated statements of income (loss).  Derecognition  A financial
liability is derecognized when the obligation under the liability is discharged or cancelled or expires. When an existing financial
liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are
substantially modified, such an exchange or modification is treated as a derecognition of the original liability and the recognition
of a new liability, and the difference in the respective carrying amounts is recognized in the consolidated statements of income
(loss).  Derivative
instruments  Just Energy
enters into fixed-term contracts with customers to provide electricity and gas at fixed prices. These customer contracts expose
Just Energy to changes in consumption as well as changes in the market prices of gas and electricity. To reduce its exposure to
movements in commodity prices, Just Energy enters into contracts with suppliers that expose the Company to changes in prices for
the purchase and sale of power and natural gas. These contracts are treated as derivatives as they do not meet the own-use criteria
under IAS 32, Financial Instruments: Presentation (“IAS 32”). The primary factors affecting the fair value of
derivative instruments at any point in time are the volume of open derivative positions and the changes of commodity market prices.
Prices for power and natural gas are volatile, which can result in material changes in the fair value measurements reported in
Just Energy’s consolidated financial statements in the future.  Just Energy
analyzes all its contracts, of both a financial and non-financial nature, to identify the existence of any “embedded”
derivatives. Embedded derivatives are accounted for separately from the underlying contract at the inception date when their economic
characteristics are not closely related to those of the host contract and the host contract is not carried as held for trading
or designated as fair value through profit or loss. These embedded derivatives are measured at fair value with changes in fair
value recognized in profit or loss.  14.
 JUST ENERGY GROUP INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED MARCH 31, 2019(in thousands of Canadian dollars, except where indicated and per share amounts)
  All derivatives
are recognized at fair value on the date on which the derivative is entered into and are remeasured to fair value at each reporting
date. Derivatives are carried in the consolidated statements of financial position as other financial assets when the fair value
is positive and as other financial liabilities when the fair value is negative. Just Energy does not utilize hedge accounting;
therefore, changes in the fair value of these derivatives are recorded directly to the consolidated statements of income (loss)
and are included within change in fair value of derivative instruments and other.  Offsetting
of financial instruments  Financial
assets and financial liabilities are offset and the net amount reported in the consolidated statements of financial position if,
and only if, there is currently an enforceable legal right to offset the recognized amounts and there is an intention to settle
on a net basis, or to realize the assets and settle the liabilities simultaneously.  Fair
value of financial instruments  Fair value
is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants
at the measurement date (i.e., an exit price). The fair value of financial instruments that are traded in active markets at each
reporting date is determined by reference to quoted market prices, without any deduction for transaction costs.  For financial
instruments not traded in an active market, the fair value is determined using appropriate valuation techniques that are recognized
by market participants. Such techniques may include using recent arm’s-length market transactions, reference to the current
fair value of another instrument that is substantially the same, discounted cash flow analysis, or other valuation models. An analysis
of fair values of financial instruments and further details as to how they are measured are provided in Note 14.  Revenue
recognition   For comparability purposes, the
accounting policy below discusses the previous revenue recognition treatment under IAS 18, Revenue (“IAS 18”). The
fiscal 2018 financial statements were prepared using IAS 18. For fiscal 2019, the Company adopted IFRS 15 as discussed in Note
7, “Accounting Policies and New Standards Adopted”.  Revenue is recognized when significant
risks and rewards of ownership are transferred to the customer. In the case of gas and electricity, transfer of risks and rewards
is upon consumption of the commodity. Just Energy recognizes revenue from thermostat leases, based on rental rates over the term
commencing from the installation date.  Revenue is measured at the fair value
of the consideration received, excluding discounts, rebates and sales taxes.  The Company assumes credit risk for
all customers in Alberta, Texas, Illinois, California, Michigan, Delaware, Ohio, Georgia and the U.K. On all value-added products
sold on the market, Just Energy also assumes the credit risk. In these markets, the Company ensures that credit review processes
are in place prior to the commodity flowing to the customer.  15.
 JUST ENERGY GROUP INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED MARCH 31, 2019(in thousands of Canadian dollars, except where indicated and per share amounts)
   Foreign
currency translation  Functional
and presentation currency  Items included
in the consolidated financial statements of each of the Company’s entities are measured using the currency of the primary
economic environment in which the entity operates (the “functional currency”). For U.S.-based subsidiaries, this is
U.S. dollars (“USD”), for subsidiaries based in the U.K. it is British pounds, and for subsidiaries based in Germany
and Ireland it is euros. The consolidated financial statements are presented in Canadian dollars, which is the parent Company’s
presentation and functional currency.  Transactions  Foreign currency
transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions.
Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at period-end exchange
rates of monetary assets and liabilities denominated in foreign currencies are recognized in the consolidated statements of income
(loss).  Translation
of foreign operations  The results
and consolidated financial position of all the group entities that have a functional currency different from the presentation currency
are translated into the presentation currency as follows:  ·assets and liabilities for each consolidated
statement of financial position presented are translated at the closing rate as at the date of that consolidated statement of financial
position; and  ·income and expenses for each consolidated
statement of income (loss) are translated at the exchange rates prevailing at the dates of the transactions.  On consolidation,
exchange differences arising from the translation of the net investment in foreign operations are recorded in other comprehensive
income (“OCI”).  When a foreign
operation is partially disposed of or sold, exchange differences that were recorded in accumulated other comprehensive income are
recognized in the consolidated statements of income (loss) as part of the gain or loss on sale.  Goodwill
and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities of the foreign
entity and translated at the closing rate.  Earnings
(loss) per share amounts  The computation
of earnings (loss) per share is based on the weighted average number of shares outstanding during the year. Diluted earnings (loss)
per share are computed in a similar way to basic earnings (loss) per share except that the weighted average number of shares outstanding
is increased to include additional shares assuming the exercise of stock options, restricted share grants (“RSGs”),
performance bonus incentive grants (“PBGs”), deferred share grants (“DSGs”) and convertible debentures,
if dilutive. 16.
 JUST ENERGY GROUP INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED MARCH 31, 2019(in thousands of Canadian dollars, except where indicated and per share amounts)
   Share-based
compensation plans  Equity-based
compensation liability  Share-based compensation plans are equity-settled transactions. The cost of share-based compensation is
measured by reference to the fair value at the date on which it was granted. Awards are valued at the grant date and are not adjusted
for changes in the prices of the underlying shares and other measurement assumptions. The cost of equity-settled transactions is
recognized, together with the corresponding increase in equity, over the period in which the performance or service conditions
are fulfilled, ending on the date on which the relevant grantee becomes fully entitled to the award. The cumulative expense recognized
for equity-settled transactions at each reporting date until the vesting period reflects the extent to which the vesting period
has expired and Just Energy’s best estimate of the number of the shares that will ultimately vest. The expense or credit
recognized for a period represents the movement in cumulative expense recognized as at the beginning and end of that period.  When options,
RSGs, PBGs and DSGs are exercised or exchanged, the amounts previously credited to contributed deficit are reversed and credited
to shareholders' capital.  Employee
future benefits  In Canada,
Just Energy offers a long-term wealth accumulation plan (the "Canadian Plan") for all permanent full-time and permanent
part-time employees (working more than 26 hours per week). The Canadian Plan consists of two components, a Deferred Profit Sharing
Plan ("DPSP") and an Employee Profit Sharing Plan ("EPSP"). For participants of the DPSP, Just Energy contributes
an amount equal to a maximum of 2% per annum of an employee's base earnings. For the EPSP, Just Energy contributes an amount up
to a maximum of 2% per annum of an employee's base earnings towards the purchase of shares of Just Energy, on a matching one-for-one
basis.  For U.S.
employees, Just Energy has established a long-term savings plan (the "U.S. Plan") for all permanent full-time and part-time
employees (working more than 30 hours per week) of its subsidiaries. The U.S. Plan consists of two components, a 401(k) and an
Employee Unit Purchase Plan ("EUPP"). For participants who are enrolled only in the EUPP, Just Energy contributes an
amount up to a maximum of 3% per annum of an employee's base earnings towards the purchase of Just Energy shares, on a matching
one-for-one basis. For participants who are enrolled only in the 401(k), Just Energy contributes an amount up to a maximum of 4%
per annum of an employee's base earnings, on a matching one-for-one basis. In the event an employee participates in both the EUPP
and 401(k), the maximum Just Energy will contribute is 5% total, consisting of 3% to the EUPP and 2% to the 401(k).  Participation
in the plans in Canada or the U.S. is voluntary. For the 401(k), there is a two-year vesting period beginning from the date of
hire, and for the EUPP, there is a six-month vesting period from the employee's enrollment date in the plan.  Obligations
for contributions to the Canadian and U.S. Plans are recognized as an expense in the consolidated statements of income (loss) when
the employee makes a contribution.  17.
 JUST ENERGY GROUP INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED MARCH 31, 2019(in thousands of Canadian dollars, except where indicated and per share amounts)
   Income
taxes  Current income
tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from, or paid
to, the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively
enacted at the reporting date in the countries where Just Energy operates and generates taxable income.  Current income
taxes relating to items recognized directly in OCI or equity are recognized in OCI or equity and not in profit or loss. Management
periodically evaluates positions taken in the tax returns with respect to situations where applicable tax regulations are subject
to interpretation and establishes provisions where appropriate.  Just Energy
follows the liability method of accounting for deferred income taxes. Under this method, deferred income tax assets and liabilities
are recognized for the estimated tax consequences attributable to the temporary differences between the carrying value of the assets
and liabilities in the consolidated financial statements and their respective tax bases.  Deferred
income tax liabilities are recognized for all taxable temporary differences except:  ·where the deferred income tax liability
arises from the initial recognition of goodwill or of an asset or liability in a transaction that is not a business combination
and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; and  ·in respect of taxable temporary differences
associated with investments in subsidiaries, where the timing of the reversal of the temporary differences can be controlled by
the parent and it is probable that the temporary differences will not reverse in the foreseeable future.  Deferred
income tax assets are recognized for all deductible temporary differences, the carryforward of unused tax credits and any unused
tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences,
and the carryforward of unused tax credits and unused tax losses, can be utilized except:  ·where the deferred income tax asset relating
to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not
a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; and  ·in respect of deductible temporary differences
associated with investments in subsidiaries, deferred income tax assets are recognized only to the extent that it is probable that
the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the temporary
differences can be utilized.  The carrying
amount of deferred income tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer
probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilized.
Unrecognized deferred income tax assets are reassessed at the end of each reporting period and are recognized to the extent that
it has become probable that future taxable profits will allow the deferred income tax asset to be recovered.   Deferred income tax assets and
liabilities are measured at the tax rates that are expected to apply to the year when the asset is realized or the liability is
settled, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.  18.
 JUST ENERGY GROUP INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED MARCH 31, 2019(in thousands of Canadian dollars, except where indicated and per share amounts)
   Deferred
income taxes relating to items recognized in cumulative translation adjustment or equity is recognized in cumulative translation
adjustment or equity and not in profit or loss.   Deferred income tax assets and
deferred income tax liabilities are offset, if a legally enforceable right exists to set off current income tax assets against
current income tax liabilities and the deferred income taxes relate to the same taxable entity and the same taxation authority.   Provisions
and restructuring  Provisions are recognized when Just Energy has a present obligation, legal or constructive, as a result
of a past event and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation
and a reliable estimate can be made of the amount of the obligation. Where Just Energy expects some or all provisions to be reimbursed,
the reimbursement is recognized as a separate asset but only when the reimbursement is virtually certain. The expense relating
to any provision is presented in the consolidated statements of income (loss), net of any reimbursement. If the effect of the time
value of money is material, provisions are discounted using a current pre-tax rate that reflects, where appropriate, the risks
specific to the liability.  Restructuring
provisions comprise activities including termination or relocation of a business, management structural reorganization and employee-related
costs. Incremental costs directly associated with the restructuring are included in the restructuring provision. Costs associated
with ongoing activities, including training or relocating continuing staff, are excluded from the provision. Measurement of the
provision is at the best estimate of the anticipated costs to be incurred.  Where discounting
is used, the increase in the provision due to the passage of time is recognized as a finance cost in the consolidated statements
of income (loss).  Selling
and marketing expenses  Commissions
and various other costs related to obtaining and renewing customer contracts are charged to income in the period incurred except
as disclosed below:  Commissions
related to obtaining and renewing Commercial customer contracts are paid in one of the following ways: all or partially up front
or as a residual payment over the term of the contract. If the commission is paid all or partially up front, it is recorded as
a customer acquisition cost in other current assets and expensed in selling and marketing expenses over the term for which the
associated revenue is earned. If the commission is paid as a residual payment, the amount is expensed as earned.  Just Energy
recognizes the incremental acquisition costs of obtaining a customer contract as an asset as these costs would not have been incurred
if the contract had not been obtained and these costs are recovered through the consideration collected from the contract. Commissions
and incentives paid for commodity contracts and value-added products are capitalized and amortized over the term of the contract.
When the term of the contract is one year or less, the incremental costs incurred to obtain the customer contracts are expensed
when incurred.  19.
 JUST ENERGY GROUP INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED MARCH 31, 2019(in thousands of Canadian dollars, except where indicated and per share amounts)
   Green
provision and certificates  Just Energy
is a retailer of green energy and records a provision to its regulators as green energy sales are recognized. A corresponding cost
is included in cost of sales. Just Energy measures its provision based on the extent of green certificates that it holds or has
committed to purchase and has recorded this obligation net of its green certificates. Any provision balance in excess of the green
certificates held or that Just Energy has committed to purchase is measured at fair value. Green certificates are purchased by
Just Energy to settle its obligation with the regulators. Any green energy-related derivatives are forward contracts and are recognized
in accordance with the accounting policy discussed under financial instruments above.  Non-current
assets held for sale and discontinued operations  Just Energy
classifies non-current assets and disposal groups as held for sale if their carrying amounts will be recovered principally through
a sale transaction rather than through continuing use. Non-current assets and disposal groups classified as held for sale are measured
at the lower of their carrying amount and fair value less costs to sell. The criteria for the held for sale classification is regarded
as met only when the sale is highly probable, and the asset or disposal group is available for immediate sale in its present condition.
Management must be committed to the sale, which should be expected to qualify for recognition as a completed sale within one year
from the date of classification. Discontinued operations are excluded from the results of continuing operations and are presented
as a single amount as profit or loss after tax from discontinued operations in the consolidated statements of income (loss). Property
and equipment and intangible assets are not depreciated or amortized once classified as held for sale.






5.REVISION OF PRIOR PERIOD FINANCIAL STATEMENT   During the fourth quarter ended
March 31, 2019, management identified immaterial errors in certain balance sheet accounts related to flat delivery gas markets.
These errors relate to fiscal years ended March 31, 2017 and earlier.   In accordance
with accounting guidance in IAS 8, Accounting policies, accounting estimates and errors, as well as guidance found in Securities
and Exchange Commission (“SEC”) Staff Accounting Bulletin No. 99, Materiality, and Staff Accounting Bulletin No. 108,
Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in the Current Year Financial Statements, the
Company assessed the materiality of the errors and concluded that it was not material to any of the Company’s previously
issued financial statements. The Company assessed that correcting these historical errors in the current period would be material
to the current period. The Company revised its opening retained earnings at the beginning of the earliest period presented to correct
the effect of the matters. The revision does not have an impact on the consolidated statements of income (loss) for fiscal 2018
and 2019.  The errors occurred before the earliest
period presented in the financial statements, and as a result the net effect on opening balances of assets, liabilities and equity
of $14.2 million was recorded as an adjustment to opening retained earnings. The following table presents the effect of the correction
on the consolidated statement of financial position as at March 31, 2018.     20.
 JUST ENERGY GROUP INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED MARCH 31, 2019(in thousands of Canadian dollars, except where indicated and per share amounts)
   As previously reported
    Adjustment
    As revisedTrade and other receivables
    $664,528
    $(5,684)
    $658,844Gas in storage
    11,812
    (9,470)
    2,342Other current assets
    109,697
    2,517
    112,214Trade and other payables
    (583,655)
    (6,363)
    (590,018)Deferred revenue
    (41,684)
    2,974
    (38,710)Income tax payable
    (7,304)
    1,818
    (5,486)Deficit
    $(1,066,931)
    $(14,208)
    $(1,081,139)






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6.SIGNIFICANT ACCOUNTING JUDGMENTS, ESTIMATES AND ASSUMPTIONS  The preparation of the consolidated financial statements requires the use of estimates and assumptions
to be made in applying the accounting policies that affect the reported amounts of assets, liabilities, income and expenses. The
estimates and related assumptions are based on previous experience and other factors considered reasonable under the circumstances,
the results of which form the basis for making the assumptions about carrying values of assets and liabilities that are not readily
apparent from other sources.  The estimates
and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in
which the estimate is revised. Judgments made by management in the application of IFRS that have a significant impact on the consolidated
financial statements relate to the following:  Allowance
for doubtful accounts  The measurement of the expected credit loss allowance for accounts receivable requires the use of management
judgment in estimation techniques, building models, selecting key inputs and making significant assumptions about future economic
conditions and credit behaviour of the customers, including the likelihood of customers defaulting and the resulting losses. At
each reporting period, Just Energy is required to evaluate the change in credit quality since initial recognition, which also requires
significant judgment.  Business
combinations  In accounting for business combinations, judgment is required in estimating the acquisition date fair
values of the identifiable assets acquired (including intangible assets) and liabilities assumed (including contingent liabilities).
The necessary measurements are based on information available on the acquisition date and expectations and assumptions that have
been deemed reasonable by management. During the measurement period (which is within one year from the acquisition date), Just
Energy must adjust the amounts recognized at the acquisition date to reflect new information obtained about facts and circumstances
that existed as of the acquisition date.  Deferred income taxes  Significant
management judgment is required to determine the amount of deferred income tax assets and liabilities that can be recognized, based
upon the likely timing and the level of future taxable income realized, including the usage of tax-planning strategies. Determining
the tax treatment on certain transactions also involves management’s judgment.   Discontinued operations  Management
used judgment in concluding on the discontinued operations classification as a major separate geographical area of operations,
as part of a single coordinated disposal plan to resell the business in the new fiscal year. There is also a high level of judgment
involved in estimating the fair value less cost to sell of the disposal group and the significant carrying amounts of the assets
and liabilities related to assets held for sale. Refer to Note 18 for further details.   21.
 JUST ENERGY GROUP INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED MARCH 31, 2019(in thousands of Canadian dollars, except where indicated and per share amounts)
   Fair
value of financial instruments  Where the
fair values of financial assets and financial liabilities recorded in the consolidated statements of financial position cannot
be derived from active markets, they are determined using valuation techniques including discounted cash flow models or transacted/quoted
prices of identical assets that are not active. The inputs to these models are taken from observable markets where possible, but
where this is not feasible, a degree of judgment is required in establishing fair values. The judgment includes consideration of
inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported
fair value of financial instruments. Refer to Note 14 for further details about the assumptions as well as a sensitivity analysis.  Impairment
of non-financial assets  Just Energy’s
impairment test is based on the fair value less cost to sell calculation and uses an EBITDA multiple approach model. Management
is required to exercise judgment in identifying the CGUs in which to allocate goodwill, working capital and related assets and
liabilities. The EBITDA is derived from actual figures and the EBITDA-multiple is sourced from external sources of information,
including analyst reports and competitor benchmarks. Judgment is further applied to determine which transactions or companies are
considered comparable for use. Refer to Note 26 for further information.






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7.ACCOUNTING POLICIES AND NEW STANDARDS ADOPTED  IFRS 15   Just Energy has adopted IFRS 15, as issued by the IASB
in July 2014, effective January 1, 2018. The new accounting policies have been applied from April 1, 2018 and, in accordance with
the transitional provisions in IFRS 15, comparative figures have not been restated. Just Energy adopted IFRS 15 using the modified
retrospective method, applying the practical expedient in paragraph C5(c) under which the aggregate effect of all modifications
on the date of initial application is reflected. Accordingly, transition adjustments have been recognized through equity as at
April 1, 2018.  IFRS 15 replaces the provisions of IAS 18, that relate
to all revenue from contracts from customers, unless those contracts are in the scope of other standards. The new standard establishes
a five-step model to account for revenue arising from contracts with customers. Under IFRS 15, revenue is recognized at an amount
that reflects the consideration to which an entity expects to be entitled in exchange for transferring goods or services to a customer.   Accounting
policies  The following accounting policies
are applicable to the accounting for all revenue arising from contracts with customers, unless those contracts are in the scope
of other standards in the quarter ended April 1, 2018 and onwards.     22.
 JUST ENERGY GROUP INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED MARCH 31, 2019(in thousands of Canadian dollars, except where indicated and per share amounts)
   Gas and electricity  Sales  Just Energy historically recognized
revenue based on consumption of the commodity by the customer. Often-times, the billing cycles for customers do not coincide with
the accounting periods used for financial reporting purposes. Gas and electricity that have been consumed by a customer, but not
yet billed to that customer, are estimated on an accrual basis and included in revenue during the period in which they were consumed.
These accrual amounts result in contract assets and are presented as unbilled revenue under IFRS 15. Unbilled revenue is assessed
for impairment in accordance with IFRS 9.  Upon the adoption of IFRS 15,
there is no change in the revenue recognition for gas and electricity sales. Just Energy has identified that the material performance
obligation is the provision of gas and electricity to customers, which is satisfied over time throughout the contract term. Just
Energy utilizes the output method to recognize revenue based on the units of gas and electricity delivered and billed to the customer
each month. Just Energy has elected to adopt the practical expedient to recognize revenue in the amount to which the entity has
a right to invoice, as the entity has a right to consideration from a customer in an amount that corresponds directly with the
value to the customer of the entity’s performance to date.  Expenses  Historically, North American residential
sales commissions and incentives paid to brokers, employees or third parties for acquiring new contracts with customers were recognized
as selling expenses as they were incurred.   Upon the adoption of IFRS 15, incremental costs to obtain
a contract with a customer are capitalized if expected to be recovered. As such, Just Energy commenced capitalizing all upfront
sales commissions, incentives and third party verification costs that meet the criteria for capitalization. These expenses are
deferred and amortized over the average customer relationship period, which varies from two to five years depending on the market
where the customer resides. Just Energy has elected under the practical expedient to recognize incremental costs of obtaining a
contract as an expense when incurred if the contract length is one year or less.   Impact on consolidated
financial statements  The cumulative effect of changes
made to the April 1, 2018 consolidated statement of financial position for the adoption of IFRS 15 was as follows, and had a deferred
income tax liability effect of $7,493:  Original IAS 18
    Carrying amount New IFRS 15Current assetsCustomer acquisition costs
    $31,852
    $43,152Non-current financial assetsCustomer acquisition costs
    $17,101
    $34,162
      23.
 JUST ENERGY GROUP INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED MARCH 31, 2019(in thousands of Canadian dollars, except where indicated and per share amounts)
   The following table shows the
effect of IFRS 15 adoption on the consolidated statement of financial position as at March 31, 2019:  As at March 31, 
2019 
(reported)
    Balances 
without 
adoption of 
IFRS 15
    Effect of 
change higherCurrent assetsCustomer acquisition costs
    $75,707
    $31,865
    $43,842Non-current financial assetsCustomer acquisition costs
    $46,416
    $17,830
    $28,586
  The following table shows the
movement of customer acquisition costs after the implementation of IFRS 15:   Current assets
    Non-current assetsOpening balance
    $41,704
    $34,106Capitalization
    98,483
    39,552Amortization
    (64,480)
    (27,242)Closing balance
    $75,707
    $46,416
           24.
 JUST ENERGY GROUP INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED MARCH 31, 2019(in thousands of Canadian dollars, except where indicated and per share amounts)
   The following table shows the
effect of the adoption of IFRS 15 on the consolidated statement of comprehensive income (loss) for the year ended March 31, 2019:  For the year ended Mar. 31, 2019 (reported)
    Balances without adoption of IFRS 15
    Effect of change higher (lower)Sales
    $3,812,470
    $3,812,470
    $-Cost of sales
    3,100,255
    3,100,255
    -Gross margin
    712,215
    712,215
    -ExpensesAdministrative
    206,820
    206,820
    -Selling and marketing
    232,030
    264,558
    (32,528)Other operating expenses
    115,016
    115,016
    -Restructuring costs
    16,078
    16,078
    -569,944
    602,472
    (32,528)Operating profit before the following
    142,271
    109,743
    32,528Finance costs
    (88,072)
    (88,072)
    -Change in fair value of derivative instruments and other
    (153,226)
    (153,226)
    -Other income -net
    1,365
    1,365
    -Loss before income taxes
    (97,662)
    (130,190)
    32,528Provision for income taxes
    2,829
    2,829
    -Profit (loss) from continuing operations
    (100,491)
    (133,019)
    32,528Loss from discontinued operations
    (22,379)
    (22,379)
    -Loss for the period
    $(122,870)
    $(155,398)
    $32,528Attributable to:Shareholders of Just Energy
    $(122,678)
    $(155,206)
    $32,528Non-controlling interest
    (192)
    (192)
    -Loss for the period
    $(122,870)
    $(155,398)
    $32,528Loss per share available to shareholdersBasic
    $(0.73)
    $(1.26)
    $0.53Diluted
    $(0.73)
    $(1.26)
    $0.53
     IFRS 15 did not impact any revenue
amounts related to historical or current revenue recognition. The key factors driving revenue segmentation are related to differentiation
between the business divisions, which are disclosed in Note 24.   The majority of Just Energy’s customer contracts
meet IFRS 15’s B16 practical expedient where Just Energy has the right to consideration from a customer in an amount that
corresponds directly with the value to the customer of the performance completed to date. While there is no change in revenue recognition
upon the adoption of IFRS 15 for flat-bill customer contracts, they do not meet the B16 practical expedient and therefore require
the following disclosure for contracts that have a duration of one year or more.   25.
 JUST ENERGY GROUP INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED MARCH 31, 2019(in thousands of Canadian dollars, except where indicated and per share amounts)
   The aggregate of contractual amounts
allocated to performance obligations related to flat-bill contracts that are unsatisfied as at March 31, 2019 is $75,636.  Just Energy expects to recognize
revenue on these flat-bill contracts in the amounts of:  April 1, 2019 to March 31, 2020
    April 1, 2020 to March 31, 2021
    April 1, 2021 to March 31, 2022
    Years thereafter
    TotalGas and electricity flat-bill contracts
    $29,122
    $22,564
    $12,998
    $10,952
    $75,636
  IFRS 9  Just Energy has adopted IFRS 9
as issued by the IASB in July 2014, effective April 1, 2018. The new accounting policies have been applied from April 1, 2018 and,
in accordance with the transitional provisions in IFRS 9, comparative figures have not been restated. Just Energy has adopted IFRS
9 retrospectively, and accordingly, transition adjustments have been recognized through equity as at April 1, 2018.  IFRS 9 replaces IAS 39 with respect
to the recognition, classification and measurement of financial assets and financial liabilities; derecognition of financial instruments;
impairment of financial assets and hedge accounting. IFRS 9 also significantly amends other standards dealing with financial instruments
such as IFRS 7, Financial Instruments: Disclosures.  (a)Accounting policy for financial instruments under IFRS 9   The following accounting policy is applicable to the accounting
for financial instruments in the quarter ended April 1, 2018 and onwards.   Financial assets  (i)Recognition and derecognition  Regular purchases and sales of
financial assets are recognized on the trade date, being the date on which Just Energy commits to purchase or sell the asset. Financial
assets are derecognized when the rights to receive cash flows from the financial assets have expired or have been transferred and
Just Energy has transferred substantially all the risks and rewards of ownership.  (ii)Classification  From April 1, 2018, Just Energy
classified its financial assets in the following measurement categories:  ·Those to be measured subsequently at fair
value (either through OCI or through profit or loss); and ·Those to be measured at amortized cost.  26.
 JUST ENERGY GROUP INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED MARCH 31, 2019(in thousands of Canadian dollars, except where indicated and per share amounts)
   The measurement category classification
of financial assets depends on Just Energy’s business objectives for managing the financial assets and whether contractual
terms of the cash flows are considered solely payments of principal and interest. For assets measured at fair value, gains and
losses will be recorded either in profit or loss or in OCI depending upon the business objective.    Just Energy reclassified debt instruments when and only
when its business objective for managing those assets changes.   (iii)Measurement  At initial recognition, Just Energy
measures a financial asset at its fair value. In the case of a financial asset not categorized as fair value through profit or
loss (“FVTPL”), transaction costs that are directly attributable to the acquisition of the financial asset are included
in measurement at initial recognition. Transaction costs of financial assets carried at FVTPL are expensed in profit or loss.  Subsequent measurement of debt
instruments depends on Just Energy’s business objective for managing the asset and the cash flow characteristics of the asset.
There are three measurement categories into which Just Energy classifies its debt instruments:  Amortized cost: Assets
held for collection of contractual cash flows that represent solely payments of principal and interest are measured at amortized
cost. A gain or loss on a debt instrument is recognized in profit or loss when the asset is derecognized or impaired. Interest
income from these financial assets is included in “finance income” using the effective interest rate method. Cash and
cash equivalents, restricted cash, trade and other receivables are included in this category.  Fair value through other comprehensive
income (“FVOCI”): Assets held to achieve a particular business objective, by collecting contractual cash flows
and selling financial assets, where the contractual terms of the financial asset give rise on specified dates to cash flows that
are solely payments of principal and interest on the principal outstanding are measured at FVOCI. Movements in the carrying amount
are taken through OCI, except for the recognition of impairment gains or losses, interest revenue and foreign exchange gains and
losses, which are recognized in profit or loss. When the financial asset is derecognized, the cumulative gain or loss previously
recognized in OCI is reclassified from equity to profit or loss. Interest income from these financial assets is included in “finance
income” using the effective interest rate method. Just Energy has not classified any investments in this category.  FVTPL: Assets that do not
meet the criteria for amortized cost or FVOCI are measured at FVTPL. A gain or loss on a debt investment that is subsequently measured
at FVTPL and is not part of a hedging relationship is recognized in profit or loss. Just Energy classifies its derivatives and
its investments in equity securities at FVTPL due to the fact that they do not meet the criteria for classification at amortized
cost as the contractual cash flows are not solely payments of principal and interest.  Just Energy’s equity instruments
are carried at FVTPL, and gains and losses are recorded in profit or loss.  (iv)Impairment  Just Energy assesses on a forward-looking
basis the expected credit losses (“ECL”) associated with its assets carried at amortized cost, including other receivables.
For trade and other receivables only, Just Energy applies the simplified approach permitted by IFRS 9, which requires expected
lifetime losses to be recognized from initial recognition of the receivables.  27.
 JUST ENERGY GROUP INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED MARCH 31, 2019(in thousands of Canadian dollars, except where indicated and per share amounts)
   Trade receivables are reviewed
qualitatively on a case-by-case basis to determine if they need to be written off.  ECL are measured as the difference
in the present value of the contractual cash flows that are due to Just Energy under the contract, and the cash flows that Just
Energy expects to receive. Just Energy assesses all information available, including past due status, credit ratings, the existence
of third party insurance and forward-looking macroeconomic factors in the measurement of the ECL associated with its assets carried
at amortized cost. Just Energy measures ECL by considering the risk of default over the contract period and incorporates forward-looking
information into its measurement.    (b)New Classification categories of financial instruments on adoption of IFRS 9    As at April 1, 2018, the date of initial application, Just Energy’s
financial instruments and new classification categories under IFRS 9 were as follows:   Classification categoryOriginal IAS 39
    New IFRS 9Current financial assetsCash and cash equivalents
    Loans and receivables
    Amortized costRestricted cash
    Loans and receivables
    Amortized costTrade and other receivables
    Loans and receivables
    Amortized costDerivative assets
    FVTPL
    FVTPLNon-current financial assetsInvestments
    FVOCI and FVTPL
    FVTPLDerivative assets
    FVTPL
    FVTPLCurrent financial liabilitiesTrade and other payables
    Other financial liabilities
    Amortized costDerivative liabilities
    FVTPL
    FVTPLCurrent portion of long-term debt
    Other financial liabilities
    Amortized costNon-current financial liabilitiesLong-term debt
    Other financial liabilities
    Amortized costDerivative liabilities
    FVTPL
    FVTPL
   Upon adoption of IFRS 9, the investment in ecobee is classified
as FVTPL instead of available for sale, resulting in a movement of $17,863 relating to the unrealized gain on revaluation of investments,
net of income taxes from OCI to accumulated earnings on April 1, 2018.    28.
 JUST ENERGY GROUP INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED MARCH 31, 2019(in thousands of Canadian dollars, except where indicated and per share amounts)
   (c)Reconciliation of lifetime
ECL balance from IAS 39 to IFRS 9  The following table reconciles
the closing lifetime ECL for financial assets and contract assets in accordance with IAS 39 as at March 31, 2018 to the opening
allowance for credit losses as at April 1, 2018.  Impairment allowance under IAS 39 as at March 31, 2018
    Remeasurement
    Lifetime expected credit loss under IFRS 9 as at April 1, 2018Trade and other receivables
    $60,121
    $11,237
    $71,358Unbilled revenue
    $-
    $12,399
    $12,399
  (d)Impairment of financial assets  Just Energy has two types of financial
assets subject to IFRS 9’s new ECL model: (i) trade and other receivables and (ii) unbilled revenue. Just Energy was required
to revise its impairment methodology under IFRS 9 for each of these classes of assets. For trade and other receivables, Just Energy
applies the simplified approach to providing for ECL prescribed by IFRS 9, which requires the use of the lifetime expected loss
provision for all trade receivables and unbilled revenue. Measurement of ECL resulted in an increase to the provision for trade
receivables and unbilled revenue of $23,636, which was recorded as at April 1, 2018. This was before the income tax impact of $5,616,
which reduced the deferred income tax liability, as at April 1, 2018.  (e)Derivatives and hedging activities  Just Energy did not apply hedge
accounting under IAS 39, nor under IFRS 9.






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8.ACCOUNTING STANDARDS ISSUED BUT NOT YET EFFECTIVE  IFRS 16, Leases
(“IFRS 16”), was issued by the IASB in January 2016. This guidance brings most leases onto the balance sheet for lessees
under a single model, eliminating the distinction between operating and finance leases. Lessor accounting remains largely unchanged
and the distinction between operating and finance leases is retained. Furthermore, per the standard, a lessee recognizes a right-of-use
asset and a lease liability. The right-of-use asset is treated similarly to other non-financial assets and depreciated accordingly,
and the liability accrues interest. The lease liability is initially measured at the present value of the lease payments payable
over the lease term, discounted at the rate implicit in the lease. IFRS 16 supersedes IAS 17, Leases (“IAS 17”),
and its related interpretations, and is effective for periods beginning on or after January 1, 2019. The standard is required to
be adopted either retrospectively or using a modified retrospective approach.  Just Energy will adopt IFRS 16
beginning April 1, 2019, and has elected to apply the modified retrospective approach. On initial adoption, Just Energy will use
the following practical expedients permitted by the standard, where applicable:  ·Exemption for short-term leases with a
remaining  term of 12 months or less as at April 1, 2019 and low value leases, which will be accounted for as operating leases; ·Using a single discount rate on a portfolio
of leases with reasonably similar characteristics; ·Excluding initial direct costs for the
measurement of the right-of-use asset at the date of initial application; ·Using historical information in determining
the lease term where contracts contain options to extend or terminate the lease; 29.
 JUST ENERGY GROUP INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED MARCH 31, 2019(in thousands of Canadian dollars, except where indicated and per share amounts)
  ·Adjusting the right-of-use asset amounts
for any onerous contract provisions immediately before the date of initial application; and ·Measuring the right-of-use assets at an
amount equal to the lease liability, adjusted for any prepaid or accrued lease payments relating to that lease immediately before
the date of initial application.   Just Energy began its assessment of existing operating
leases, which primarily consist of buildings, office equipment, and vehicles. Upon implementation, Just Energy will record the
right-of-use lease assets and related lease liabilities for existing operating leases.  Adopting IFRS 16 is expected to increase Just Energy's
assets and liabilities, depreciation and amortization, and finance costs, while reducing operating costs. Just Energy is in the
final stages of establishing the amounts of the right-of-use asset and lease liability and overall financial statement impact of
adopting IFRS 16, which will be completed and disclosed in the June 30, 2019 interim condensed consolidated financial statements.  IFRS Interpretations Committee (“IFRIC”)
23, Uncertainty over Income Tax Treatments (“IFRIC 23”), provides guidance to be applied in the determination
of taxable profit or loss, tax bases, unused tax losses, unused tax credits and tax rates, when there is uncertainty over income
tax treatments under IAS 12, Income Taxes (“IAS 12”). IFRIC 23 was issued by the IASB in June 2017 and is effective
for annual periods beginning on or after January 1, 2019. Just Energy does not expect the interpretation to have a material impact
on the consolidated financial statements when it implements IFRIC 23 beginning April 1, 2019.  IFRIC Agenda Paper 11, Physical Settlement of Contracts
to Buy or Sell a Non-Financial Item (“Agenda Paper 11),the IFRS Interpretations Committee (“IFRIC”) reached
a decision on Agenda Paper 11 during its meeting on March 5 - 6, 2019. The decision was in respect to a request about how an entity
applies IFRS 9 to particular contracts to buy or sell a non-financial item at a fixed price.  The Company has reviewed the agenda decision and determined
that a change is required in its accounting policy related to contracts to buy or sell a non-financial item that can be settled
net in cash or another financial instrument, or by exchanging financial instruments. These are contracts the Company enters into
which are accounted for as derivatives at fair value through profit or loss but physically settled by the underlying non-financial
item. The IFRIC concluded that IFRS 9 neither permits or requires an entity to reverse the accumulated gain or loss previously
recognized on the derivative and recognize a corresponding adjustment to cost of goods sold or inventory when the contract is physically
settled.  In its December 2018 meeting, the International Accounting
Standards Board (IASB) confirmed its view that it expects companies to be entitled to sufficient time to implement changes in accounting
policy that result from agenda decisions of the IFRIC. The Company is currently evaluating the impact of implementing the agenda
decision on its financial statements, systems and processes. Given the nature of its current systems and processes and the volume
of transactions affected, the Company determined it was not possible to affect the accounting change in time for its March 31,
2019 reporting. The Company expects to implement the change retrospectively in the first half of its fiscal 2020 year. While the
impact has not been quantified, the Company expects there will be material movements between cost of sales and change in fair value
of derivative instruments and other in Just Energy’s consolidated statement of operations and the value of gas in storage
on the statement of financial position. There is no impact on the net income of the Company.






30.


JUST ENERGY GROUP INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED MARCH 31, 2019(in thousands of Canadian dollars, except where indicated and per share amounts)






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|

9.TRADE AND OTHER RECEIVABLES  As at
    As atMarch 31, 2019
    March 31, 2018Trade account receivables, net
    $476,173
    $326,399Accrued gas receivable
    13,637
    15,893Unbilled revenue
    277,556
    301,577Other
    16,414
    14,975$783,780
    $658,844






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|

10.OTHER CURRENT AND NON-CURRENT ASSETS  (a)Other
current assets  As at March 31, 2019
    As at March 31, 2018Prepaid expenses and deposits
    $45,709
    $35,078Customer acquisition costs
    75,707
    31,852Green certificates
    39,749
    42,230Gas delivered in excess of consumption
    3,121
    2,715Inventory
    4,954
    339$169,240
    $112,214
  (b)Other
non-current assets  As at March 31, 2019
    As at March 31, 2018Customer acquisition costs
    $46,416
    $17,101Income taxes recoverable
    3,096
    2,336Other long-term assets
    -
    550$49,512
    $19,987






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|

11.INVESTMENTS   On August 10, 2012, Just Energy, through a subsidiary,
acquired an interest in ecobee, a private company that designs, manufactures and distributes smart thermostats, for an amount of
$6.4 million. During the fiscal year 2017 and 2018, Just Energy further increased its investment in the company by $5.4 million
and $0.4 million, respectively. Company markets these smart thermostats in all its core markets, bundling the thermostats with
commodity and home service products. As at March 31, 2019, Just Energy owns approximately 8% of ecobee. This investment is measured
at and classified as fair value through profit or loss. The fair value of the investment has been determined directly from transacted/quoted
prices of identical assets that are not active (Level 3 measurement). As at March 31, 2019, the fair value of the investment is
$32.9 million (2018 – $32.4 million).        31.
 JUST ENERGY GROUP INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED MARCH 31, 2019(in thousands of Canadian dollars, except where indicated and per share amounts)






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12.PROPERTY AND EQUIPMENT  As at March 31, 2019Computer equipment
    Furniture
 and
 fixtures
    Installed
 assets
    Office 
equipment
    Thermo-
stats
    Leasehold
 improve-
ments
    TotalCost:Opening balance - April 1, 2018
    $22,173
    $6,861
    $-
    $15,209
    $13,238
    $4,894
    $62,375Additions
    7,468
    58
    707
    311
    -
    114
    8,658Acquisition
    -
    -
    4,827
    773
    -
    554
    6,154Assets held for sale
    (5)
    (4)
    -
    (60)
    -
    -
    (69)Retirements
    -
    (309)
    -
    -
    (192)
    (1,078)
    (1,579)Exchange differences
    340
    95
    15
    32
    131
    312
    925Ending balance, March 31, 2019
    29,976
    6,701
    5,549
    16,265
    13,177
    4,796
    76,464Accumulated depreciation:Opening balance - April 1, 2018
    (13,984)
    (4,995)
    -
    (10,776)
    (10,555)
    (3,172)
    (43,482)Depreciation charge to cost of sales
    -
    -
    -
    -
    (2,666)
    -
    (2,666)Depreciation charge for the year
    (2,835)
    (178)
    (707)
    (623)
    -
    (428)
    (4,771)Assets held for sale
    2
    -
    -
    (4)
    -
    (49)
    (51)Retirements
    -
    127
    -
    -
    202
    322
    651Exchange differences
    (138)
    (61)
    -
    (61)
    (64)
    41
    (283)Ending balance, March 31, 2019
    (16,955)
    (5,107)
    (707)
    (11,464)
    (13,083)
    (3,286)
    (50,602)Net book value, March 31, 2019
    $13,021
    $1,594
    $4,842
    $4,801
    $94
    $1,510
    $25,862
  As at March 31, 2018Computer 
equipment
    Furniture 
and 
fixtures
    Office 
equipment
    Thermo-
stats
    Leasehold 
improve-
ments
    TotalCost:Opening balance - April 1, 2017
    $18,672
    $6,774
    $14,947
    $13,471
    $4,517
    $58,381Additions
    3,561
    147
    352
    387
    391
    4,838Retirements
    -
    -
    -
    (517)
    -
    (517)Exchange differences
    (60)
    (60)
    (90)
    (103)
    (14)
    (327)Ending balance, March 31, 2018
    22,173
    6,861
    15,209
    13,238
    4,894
    62,375Accumulated depreciation:Opening balance - April 1, 2017
    (11,600)
    (4,776)
    (10,095)
    (7,713)
    (2,515)
    (36,699)Depreciation charge to cost of sales
    -
    -
    -
    (3,116)
    -
    (3,116)Depreciation charge for the year
    (2,431)
    (262)
    (745)
    -
    (677)
    (4,115)Retirements
    -
    -
    -
    208
    -
    208Exchange differences
    47
    43
    64
    66
    20
    240Ending balance, March 31, 2018
    (13,984)
    (4,995)
    (10,776)
    (10,555)
    (3,172)
    (43,482)Net book value, March 31, 2018
    $8,189
    $1,866
    $4,433
    $2,683
    $1,722
    $18,893
   32.
 JUST ENERGY GROUP INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED MARCH 31, 2019(in thousands of Canadian dollars, except where indicated and per share amounts)






13.INTANGIBLE ASSETS    As at March 31, 2019Goodwill
    Brand
    Technology1
    Customer
 relationships
    Sales
 networks and
 affinity
 relationships
    Other
    TotalCost:Opening balance - April 1, 2018
    $300,673
    $30,205
    $80,401
    $18,027
    $51,963
    $495
    $481,764Acquisition
    40,630
    3,000
    -
    12,600
    -
    -
    56,230Assets held for sale
    -
    -
    (2,453)
    -
    -
    (3)
    (2,456)Additions
    -
    -
    38,383
    -
    -
    -
    38,383Exchange differences
    (1,382)
    1,100
    1,332
    623
    1,890
    (439)
    3,124Ending balance, March 31, 2019
    339,921
    34,305
    117,663
    31,250
    53,853
    53
    577,045Accumulated amortization:Opening balance - April 1, 2018
    -
    -
    (36,309)
    (1,309)
    (42,220)
    -
    (79,838)Assets held for sale
    -
    -
    18
    -
    -
    2
    20Amortization charge for the year
    -
    (100)
    (14,927)
    (1,018)
    (6,610)
    -
    (22,655)Exchange differences
    -
    -
    1,883
    (2,142)
    (1,657)
    -
    (1,916)Ending balance, March 31, 2019
    -
    (100)
    (49,335)
    (4,469)
    (50,487)
    2
    (104,389)Net book value, March 31, 2019
    $339,921
    $34,205
    $68,328
    $26,781
    $3,366
    $55
    $472,656
  1Technology includes work in progress IT projects of $27.3 million   As at March 31, 2018Goodwill
    Brand
    Technology
    Customer 
relationship
    Sales network 
and affinity 
relationships
    Other
    TotalCost:Opening balance - April 1, 2017
    $289,201
    $31,154
    $48,525
    $-
    $53,595
    $-
    $422,475Acquisition of a subsidiary
    14,699
    -
    1,409
    17,387
    -
    347
    33,842Additions
    -
    -
    30,938
    -
    -
    -
    30,938Exchange differences
    (3,227)
    (949)
    (471)
    640
    (1,632)
    148
    (5,491)Ending balance, March 31, 2018
    300,673
    30,205
    80,401
    18,027
    51,963
    495
    481,764Accumulated amortization:Opening balance - April 1, 2017
    -
    -
    (27,641)
    -
    (36,847)
    -
    (64,488)Amortization charge for the year
    -
    -
    (8,924)
    (1,309)
    (6,466)
    -
    (16,699)Exchange differences
    -
    -
    256
    -
    1,093
    -
    1,349Ending balance, March 31, 2018
    -
    -
    (36,309)
    (1,309)
    (42,220)
    -
    (79,838)Net book value, March 31, 2018
    $300,673
    $30,205
    $44,092
    $16,718
    $9,743
    $495
    $401,926
  33.
 JUST ENERGY GROUP INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED MARCH 31, 2019(in thousands of Canadian dollars, except where indicated and per share amounts)
   The capitalized internally developed
costs relate to the development of new customer billing and analysis software solutions for the different energy markets of Just
Energy. All research costs and development costs, not eligible for capitalization, have been expensed and are recognized in administrative
expenses.






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14.FINANCIAL INSTRUMENTS  (a)Fair value of derivative financial instruments and other   The fair value of financial instruments is the price that
would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the
measurement date (i.e., an exit price). Management has estimated the value of financial swaps, physical forwards and option contracts
for electricity, natural gas, carbon and renewable energy certificates, and generation and transmission capacity contracts using
a discounted cash flow method, which employs market forward curves that are either directly sourced from third parties or developed
internally based on third party market data. These curves can be volatile, thus leading to volatility in the mark to market with
no immediate impact to cash flows. Gas options have been valued using the Black option pricing model using the applicable market
forward curves and the implied volatility from other market traded options. Management periodically uses non-exchange traded swap
agreements based on cooling degree days and heating degree days measured in its utility service territories to reduce the impact
of weather volatility on Just Energy’s electricity volumes, commonly referred to as “weather derivatives”. The
fair value of these swaps on a given measurement station indicated in the derivative contract are determined by calculating the
difference between the agreed strike and expected variable observed at the same station.   The following table illustrates
gains (losses) related to Just Energy’s derivative financial instruments classified as FVTPL and recorded on the consolidated
statements of financial position as fair value of derivative financial assets and fair value of derivative financial liabilities,
with their offsetting values recorded in change in fair value of derivative instruments and other on the consolidated statements
of income (loss).  For the year ended March 31, 2019
    For the year ended March 31, 2018Change in fair value of derivative instruments and otherPhysical forward contracts and options (i)
    $(182,117)
    $400,583Financial swap contracts and options (ii)
    39,832
    59,710Foreign exchange forward contracts
    72
    (1,842)Share swap (iii)
    (3,507)
    (4,484)6.5% convertible bond conversion feature
    247
    7,764Unrealized foreign exchange on 6.5% convertible bond
    (8,061)
    6,101Weather derivatives
    7,796
    -Other derivative options
    (7,488)
    6,561Change in fair value of derivative instruments and other
    $(153,226)
    $474,393
  34.
 JUST ENERGY GROUP INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED MARCH 31, 2019(in thousands of Canadian dollars, except where indicated and per share amounts)
   The
following table summarizes certain aspects of the fair value of derivative financial assets and liabilities recorded in the consolidated
statement of financial position as at March 31, 2019:   Financial 
assets 
(current)
    Financial 
assets 
(non-current)
    Financial 
liabilities 
(current)
    Financial 
liabilities 
(non-current)Physical forward contracts and options (i)
    $115,483
    $7,237
    $49,601
    $50,174Financial swap contracts and options (ii)
    18,212
    1,876
    16,142
    8,583Foreign exchange forward contracts
    -
    56
    1,555
    -Share swap (iii)
    -
    -
    11,907
    -Other derivative options
    10,817
    86
    182
    4,901As at March 31, 2019
    $144,512
    $9,255
    $79,387
    $63,658
   The
following table summarizes certain aspects of the fair value of derivative financial assets and liabilities recorded in the
consolidated statement of financial position as at March 31, 2018:  Financial 
assets 
(current)
    Financial 
assets 
(non-current)
    Financial 
liabilities 
(current)
    Financial 
liabilities 
(non-current)Physical forward contracts and options
    $198,891
    $60,550
    $32,451
    $29,003Financial swap contracts and options
    8,133
    1,342
    34,369
    22,117Foreign exchange forward contracts
    -
    -
    1,068
    505Share swap
    -
    -
    18,400
    -6.5% convertible bond conversion feature
    -
    -
    -
    246Other derivative options
    11,745
    2,770
    -
    -As at March 31, 2018
    $218,769
    $64,662
    $86,288
    $51,871
  Below is a summary of the financial instruments classified
through profit or loss as at March 31, 2019, to which Just Energy has committed:  (i)Physical forward contracts and options consist of:  ·Electricity contracts with a total remaining
volume of 38,759,196 MWh, a weighted average price of $51.29/MWh and expiry dates up to March 31, 2029.  ·Natural gas contracts with a total remaining
volume of 92,885,570 GJs, a weighted average price of $3.67/GJ and expiry dates up to December 31, 2024.  ·Renewable energy certificates (“RECs”)
and emission-reduction credit contracts with a total remaining volume of 4,184,687 MWh and 177,000 tonnes, respectively, a weighted
average price of $32.50/REC and $2.68/tonne, respectively, and expiry dates up to December 31, 2028 and December 31, 2021.  ·Electricity generation capacity contracts
with a total remaining volume of 4,362 MWCap, a weighted average price of $5,226.42/MWCap and expiry dates up to May 31, 2023.  35.
 JUST ENERGY GROUP INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED MARCH 31, 2019(in thousands of Canadian dollars, except where indicated and per share amounts)
   ·Ancillary contracts with a total remaining
volume of 738,532 MWh, a weighted average price of $23.06/MWh and expiry dates up to December 31, 2020.  (ii)Financial swap contracts and options consist of:  ·Electricity contracts with a total remaining
volume of 10,333,347 MWh, an average price of $45.19/MWh and expiry dates up to November 30, 2024.  ·Natural gas contracts with a total remaining
volume of 134,711,738 GJs, an average price of $3.53/GJ and expiry dates up to December 31, 2024.  ·Electricity generation capacity contracts
with a total remaining volume of 69 MWCap, a weighted average price of $304,787.72/MWCap and expiry dates up to October 31, 2020.  ·Ancillary contracts with a total remaining
volume of 1,220,145 MWh, a weighted average price of $21.52/MWh and expiry dates up to December 31, 2020.  (iii)Share swap agreement  Just Energy has entered into
a share swap agreement to manage the consolidated statements of income (loss) volatility associated with the Company’s RSG
and DSG Plans. The value, on inception, of the 2,500,000 shares under this share swap agreement was approximately $33,803. On August
22, 2018, Just Energy reduced the notional value of the share swap to $23,803 through a payment of $10,000 and renewed the share
swap agreement for an additional year. Net monthly settlements received under the share swap agreement are recorded in other income.
Just Energy records the fair value of the share swap agreement in the non-current derivative financial liabilities on the consolidated
statements of financial position. Changes in the fair value of the share swap agreement are recorded through the consolidated statements
of income (loss) as a change in fair value of derivative instruments and other.  These derivative financial instruments
create a credit risk for Just Energy since they have been transacted with a limited number of counterparties. Should any counterparty
be unable to fulfill its obligations under the contracts, Just Energy may not be able to realize the financial assets’ balance
recognized in the consolidated financial statements.  Fair value
(“FV”) hierarchy of derivatives  Level 1  The fair value measurements are
classified as Level 1 in the FV hierarchy if the fair value is determined using quoted unadjusted market prices.  Level 2  Fair value measurements that require
observable inputs other than quoted prices in Level 1, either directly or indirectly, are classified as Level 2 in the FV hierarchy.
This could include the use of statistical techniques to derive the FV curve from observable market prices. However, in order to
be classified under Level 2, significant inputs must be directly or indirectly observable in the market. Just Energy values its
New York Mercantile Exchange (“NYMEX”) financial gas fixed-for-floating swaps under Level 2.  36.
 JUST ENERGY GROUP INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED MARCH 31, 2019(in thousands of Canadian dollars, except where indicated and per share amounts)
   Level 3   Fair value measurements that require unobservable market
data or use statistical techniques to derive forward curves from observable market data and unobservable inputs are classified
as Level 3 in the FV hierarchy. For the power supply contracts, Just Energy uses quoted market prices as per available market forward
data and applies a price-shaping profile to calculate the monthly prices from annual strips and hourly prices from block strips
for the purposes of mark to market calculations. The profile is based on historical settlements with counterparties or with the
system operator and is considered an unobservable input for the purposes of establishing the level in the FV hierarchy. For the
natural gas supply contracts, Just Energy uses three different market observable curves: (i) Commodity (predominately NYMEX), (ii)
Basis and (iii) Foreign exchange. NYMEX curves extend for over five years (thereby covering the length of Just Energy’s contracts);
however, most basis curves extend only 12 to 15 months into the future. In order to calculate basis curves for the remaining years,
Just Energy uses extrapolation, which leads natural gas supply contracts to be classified under Level 3.  Weather derivatives are non-exchange traded financial instruments
used as part of a risk management strategy to mitigate the impact adverse weather conditions have on gross margin. The fair values
of the derivatives are determined using an internally developed model that relies upon both observable inputs and significant unobservable
inputs. Accordingly, the fair values of these derivatives are classified as Level 3. Market and contractual inputs to these models
vary by contract type and would typically include notional amounts, reference weather stations, strike prices, temperature strike
values, terms to expiration, historical weather data and historical commodity prices. The historical weather data and commodity
prices were utilized to value the expected payouts with respect to weather derivatives and, as a result, are the most significant
assumptions contributing to the determination of fair value estimates, and changes in these inputs can result in a significantly
higher or lower fair value measurement. There were no weather derivatives held as at March 31, 2019.  For the share swap, Just Energy uses a forward interest
rate curve along with a volume weighted average share price to model out its value. As the inputs have no observable market, it
is classified as Level 3.  Just Energy’s accounting policy is to recognize transfers
between levels of the fair value hierarchy on the date of the event or change in circumstances that caused the transfer. The fair
value inputs into the investment of ecobee transferred from Level 2 to Level 3 in fiscal 2019.   Fair value
measurement input sensitivity  The main cause of changes in the
fair value of derivative instruments is changes in the forward curve prices used for the fair value calculations. Just Energy provides
a sensitivity analysis of these forward curves under the “Market risk” section of this note. Other inputs, including
volatility and correlations, are driven off historical settlements.  The following table illustrates the classification of derivative financial assets (liabilities) in the FV hierarchy as at March 31, 2019:  Level 1
    Level 2
    Level 3
    TotalDerivative financial assets
    $-
    $-
    $153,766
    $153,766Derivative financial liabilities
    -
    (6,588)
    (136,456)
    (143,044)Total net derivative assets (liabilities)
    $-
    $(6,588)
    $17,310
    $10,722
  37.
 JUST ENERGY GROUP INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED MARCH 31, 2019(in thousands of Canadian dollars, except where indicated and per share amounts)
   The following table illustrates the classification of derivative financial assets (liabilities) in the FV hierarchy as at March 31, 2018:  Level 1
    Level 2
    Level 3
    TotalDerivative financial assets
    $-
    $-
    $283,431
    $283,431Derivative financial liabilities
    -
    (21,092)
    (117,067)
    (138,159)Total net derivative assets (liabilities)
    $-
    $(21,092)
    $166,364
    $145,272
  Commodity price sensitivity
– Level 3 derivative financial instruments  If the energy prices associated with only Level 3 derivative
financial instruments including natural gas, electricity, verified emission-reduction credits and RECs had risen (fallen) by 10%,
assuming that all of the other variables had remained constant, profit (loss) before income taxes for the year ended March 31,
2019 would have increased (decreased) by $241,661 ($239,419), primarily as a result of the change in fair value of Just Energy’s
derivative financial instruments.  Key assumptions used when determining the significant unobservable inputs for all commodity supply contracts included in Level 3 of the FV hierarchy consist of up to 5% price extrapolation to calculate monthly prices that extend beyond the market observable 12- to 15-month forward curve.    The
following table illustrates the changes in net fair value of financial assets (liabilities) classified as Level 3 in the FV hierarchy
for the following periods:  Year ended March 31, 2019
    Year ended March 31, 2018Balance, beginning of year
    $166,364
    $(315,110)Total gains
    19,644
    105,709Purchases
    11,502
    207,531Sales
    (25,575)
    (64,464)Settlements
    (154,625)
    232,698Balance, end of year
    $17,310
    $166,364
  (b)Classification of non-derivative financial assets and liabilities  As at March 31, 2019 and March
31, 2018, the carrying value of cash and cash equivalents, restricted cash, current trade and other receivables, and trade and
other payables approximates their fair value due to their short-term nature.   Long-term debt recorded at amortized cost has a fair
value as at March 31, 2019 of $740.6 million (March 31, 2018 - $570.1 million) and the interest payable on outstanding amounts
is at rates that vary with Bankers’ Acceptances, LIBOR, Canadian bank prime rate or U.S. prime rate, with the exceptions
of the 8.75% loan, 6.75% $100M convertible debentures, 6.75% $160M convertible debentures, 6.5% convertible bonds and 5.75% convertible
debentures, which are fair valued based on market value. The 6.75% $100M convertible debentures, 6.75% $160M convertible debentures,
6.5% convertible bonds and 5.75% convertible debentures are classified as Level 1 in the FV hierarchy.  Investments in equity instruments have a fair value
as at March 31, 2019 of $36.9 million (March 31, 2018 - $36.3 million) and are measured based on Level 2 of the fair value hierarchy
for the investment in Energy Earth and Level 3 of the fair value hierarchy for the investment in ecobee.   No adjustments were made in
the year in valuing the investment in ecobee or Energy Earth. Movements are related to foreign exchange revaluations.   38.
 JUST ENERGY GROUP INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED MARCH 31, 2019(in thousands of Canadian dollars, except where indicated and per share amounts)
   The following table illustrates the classification of investments in the FV hierarchy as at March 31, 2019:  Level 1
    Level 2
    Level 3
    TotalInvestment in ecobee
    $-
    $-
    $32,888
    $32,888Investment in Energy Earth
    -
    4,009
    -
    4,009Total investments
    $-
    $4,009
    $32,888
    $36,897
  The risks associated with Just
Energy’s financial instruments are as follows:  (i)Market risk  Market risk is the potential
loss that may be incurred as a result of changes in the market or fair value of a particular instrument or commodity. Components
of market risk to which Just Energy is exposed are discussed below.  Foreign
currency risk  Foreign currency risk is created
by fluctuations in the fair value or cash flows of financial instruments due to changes in foreign exchange rates and exposure
as a result of investments in U.S. and international operations.  The performance of the Canadian
dollar relative to the U.S. dollar could positively or negatively affect Just Energy’s income, as a portion of Just Energy’s
income is generated in USD and is subject to currency fluctuations upon translation to Canadian dollars. Due to its growing operations
in the U.S. and Europe, Just Energy expects to have a greater exposure to foreign currency fluctuations in the future than in prior
years. Just Energy has economically hedged between 50% and 90% of forecasted cross border cash flows that are expected to occur
within the next 12 months and between 0% and 50% of certain forecasted cross border cash flows that are expected to occur within
the following 13 to 24 months. The level of economic hedging is dependent on the source of the cash flows and the time remaining
until the cash repatriation occurs.  Just Energy may, from time
to time, experience losses resulting from fluctuations in the values of its foreign currency transactions, which could adversely
affect its operating results. Translation risk is not hedged.   With respect to translation exposure, if the Canadian
dollar had been 5% stronger or weaker against the U.S. dollar for the year ended March 31, 2019, assuming that all the other variables
had remained constant, loss for the year would have been $3.8 million lower/higher and OCI would have been $14.2 million lower/higher.   Interest
rate risk  Just Energy is only exposed to
interest rate fluctuations associated with its floating rate credit facility. Just Energy’s current exposure to interest
rates does not economically warrant the use of derivative instruments. Just Energy’s exposure to interest rate risk is relatively
immaterial and temporary in nature. Just Energy does not currently believe that its long-term debt exposes the Company to material
interest rate risks but has set out parameters to actively manage this risk within its Risk Management Policy.  A 1% increase (decrease) in interest
rates would have resulted in a decrease (increase) of approximately $1,939 in profit before income taxes for the year ended March
31, 2019 (2018 - $758). 39.
 JUST ENERGY GROUP INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED MARCH 31, 2019(in thousands of Canadian dollars, except where indicated and per share amounts)
   Commodity
price risk  Just Energy is exposed to market
risks associated with commodity prices and market volatility where estimated customer requirements do not match actual customer
requirements. Management actively monitors these positions on a daily basis in accordance with its Risk Management Policy. This
policy sets out a variety of limits, most importantly thresholds for open positions in the gas and electricity portfolios, which
also feed a value at risk limit. Should any of the limits be exceeded, they are closed expeditiously or express approval to continue
to hold is obtained. Just Energy’s exposure to market risk is affected by a number of factors, including accuracy of estimation
of customer commodity requirements, commodity prices, volatility and liquidity of markets. Just Energy enters into derivative instruments
in order to manage exposures to changes in commodity prices. The derivative instruments that are used are designed to fix the price
of supply for estimated customer commodity demand and thereby fix margins such that shareholder dividends can be appropriately
established. Derivative instruments are generally transacted over the counter. The inability or failure of Just Energy to manage
and monitor the above market risks could have a material adverse effect on the operations and cash flows of Just Energy. Just Energy
mitigates the exposure to variances in customer requirements that are driven by changes in expected weather conditions through
active management of the underlying portfolio, which involves, but is not limited to, the purchase of options including weather
derivatives. Just Energy’s ability to mitigate weather effects is limited by the degree to which weather conditions deviate
from normal.  Commodity
price sensitivity – all derivative financial instruments  If all the energy prices associated
with derivative financial instruments including natural gas, electricity, verified emission-reduction credits and RECs had risen
(fallen) by 10%, assuming that all of the other variables had remained constant, profit before income taxes for the year ended
March 31, 2019 would have increased (decreased) by $240,332 ($238,089), primarily as a result of the change in fair value of Just
Energy’s derivative financial instruments.   (ii)
Credit risk  Credit risk is the risk that one
party to a financial instrument fails to discharge an obligation and causes financial loss to another party. Just Energy is exposed
to credit risk in two specific areas: customer credit risk and counterparty credit risk.  Customer
credit risk   In Alberta, Texas, Illinois, California, Delaware, Ohio,
Georgia and the U.K., Just Energy has customer credit risk and, therefore, credit review processes have been implemented to perform
credit evaluations of customers and manage customer default. If a significant number of customers were to default on their payments,
it could have a material adverse effect on the operations and cash flows of Just Energy. Management factors default from credit
risk in its margin expectations for all the above markets.   40.
 JUST ENERGY GROUP INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED MARCH 31, 2019(in thousands of Canadian dollars, except where indicated and per share amounts)
   The aging of the accounts receivable from the above markets was as follows:  March 31, 2019
    March 31, 2018Current
    $116,892
    $113,7861–30 days
    42,562
    44,37431–60 days
    22,317
    21,24161–90 days
    16,352
    12,686Over 90 days
    100,580
    69,207$298,703
    $261,294
  Changes in the allowance for doubtful accounts related to the balances in the table above were as follows:  March 31, 2019
    March 31, 2018Balance, beginning of year
    $60,121
    $49,431Provision for doubtful accounts
    81,037
    56,300Bad debts written off
    (90,231)
    (41,802)Adjustment from IFRS 9 adoption
    23,636
    -Foreign exchange
    (3,363)
    (3,808)Balance, end of year
    $71,200
    $60,121
  In the remaining markets, the
LDCs, provide collection services and assume the risk of any bad debts owing from Just Energy’s customers for a fee. Management
believes that the risk of the LDCs failing to deliver payment to Just Energy is minimal. There is no assurance that the LDCs providing
these services will continue to do so in the future.  Counterparty
credit risk  Counterparty
credit risk represents the loss that Just Energy would incur if a counterparty fails to perform under its contractual obligations.
This risk would manifest itself in Just Energy replacing contracted supply at prevailing market rates, thus impacting the related
customer margin. Counterparty limits are established within the Risk Management Policy. Any exceptions to these limits require
approval from the Board of Directors of Just Energy. The Risk Department and Risk Committee monitor current and potential credit
exposure to individual counterparties and also monitor overall aggregate counterparty exposure. However, the failure of a counterparty
to meet its contractual obligations could have a material adverse effect on the operations and cash flows of Just Energy.    As at March 31, 2019, the estimated counterparty credit
risk exposure amounted to $153,767 (2018 - $283,431), representing the risk relating to Just Energy’s exposure to derivatives
that are in an asset position.   (iii) Liquidity
risk  Liquidity risk is the potential
inability to meet financial obligations as they fall due. Just Energy manages this risk by monitoring detailed daily cash flow
forecasts covering a rolling 13-week period, cash forecasts for the next 12 months, and quarterly forecasts for the following two-year
period to ensure adequate and efficient use of cash resources and credit facilities.  41.
 JUST ENERGY GROUP INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED MARCH 31, 2019(in thousands of Canadian dollars, except where indicated and per share amounts)
   The following
are the contractual maturities, excluding interest payments, reflecting undiscounted disbursements of Just Energy’s financial
liabilities:  As at March 31, 2019:    Carrying amount
    Contractual cash
    flows
    Less than 1 year
    1–3 years
    4–5 years
    More than 5 yearsTrade and other payables
    $714,110
    $714,110
    $714,110
    $-
    $-
    $-Long-term debt1
    725,372
    781,701
    39,150
    210,564
    531,987
    -Gas, electricity and non-commodity contracts
    143,045
    3,500,493
    1,899,713
    1,439,479
    119,212
    42,089$1,582,527
    $4,996,304
    $2,652,973
    $1,650,043
    $651,199
    $42,089
   As at March 31, 2018:  Carrying amount
    Contractual cash flows
    Less than 1 year
    1–3 years
    4–5 years
    More than 5 yearsTrade and other payables
    $622,797
    $622,797
    $622,797
    $-
    $-
    $-Long-term debt1
    543,504
    575,525
    122,115
    193,410
    260,000
    -Gas, electricity and non-commodity contracts
    138,159
    3,171,037
    1,867,389
    1,202,949
    69,658
    31,041$1,304,460
    $4,369,359
    $2,612,301
    $1,396,359
    $329,658
    $31,041
 1Included
in long-term debt are the 6.75% $100M convertible debentures, 6.75% $160M convertible debentures, 6.5% convertible bonds and 5.75%
convertible debentures, which may be settled through the issuance of shares at the option of the holder or Just Energy upon maturity.  In addition to the amounts noted above, as at March
31, 2019, the contractual net interest payments over the term of the long-term debt with scheduled repayment terms are as follows:  Less than 1 year
    1–3 years
    4–5 years
    More than 5 yearsInterest payments
    $40,765
    $80,234
    $40,600
    $-
  (iv) Supplier risk  Just Energy purchases the majority
of the gas and electricity delivered to its customers through long-term contracts entered into with various suppliers. Just
Energy has an exposure to supplier risk as the ability to continue to deliver gas and electricity to its customers is reliant upon
the ongoing operations of these suppliers and their ability to fulfil their contractual obligations. As at March 31, 2019,
Just Energy has applied an adjustment factor to determine the fair value of its financial instruments in the amount of $8,307 (2018
- $4,737) to accommodate for its counterparties’ risk of default.   42.
 JUST ENERGY GROUP INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED MARCH 31, 2019(in thousands of Canadian dollars, except where indicated and per share amounts)






15.TRADE AND OTHER PAYABLES  As at March 31, 2019
    As at March 31, 2018Commodity suppliers' payables
    $189,554
    $176,831Accrued liabilities
    112,039
    135,733Green provisions
    151,992
    152,542Sales tax payable
    22,969
    15,794Trade accounts payable
    184,257
    45,887Payable for former JV partner
    22,625
    26,375Accrued gas payable
    12,937
    18,624Other payables
    17,737
    18,232$714,110
    $590,018






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16.DEFERRED REVENUE  Fiscal 2019
    Fiscal 2018Balance, beginning of year
    $38,710
    $17,546Additions to deferred revenue
    569,880
    553,050Revenue recognized during the year
    (563,922)
    (534,265)Foreign Exchange impact
    (1,440)
    2,379Balance, end of year
    $43,228
    $38,710






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17.ACQUISITION OF BUSINESSES  (a)Acquisition of EdgePower, Inc.  On February
28, 2018, Just Energy completed the acquisition of the issued and outstanding shares of EdgePower, Inc. (“EdgePower”),
a privately held energy monitoring and management company operating out of Aspen, Colorado. EdgePower provides lighting and HVAC
controls, as well as enterprise monitoring, in hundreds of commercial buildings in North America. Just Energy acquired 100% of
the equity interests of EdgePower for the purposes of integrating their lighting and HVAC controls with the commercial business.
The fair value of the total consideration transferred is US$14.9 million, of which US$7.5 million was paid in cash and US$7.4 million
was settled through the issuance of 1,415,285 Just Energy common shares. The goodwill that was acquired as part of this acquisition
relates primarily to the EdgePower workforce and synergies between Just Energy and EdgePower.  In addition,
the former shareholders of EdgePower are entitled to a payment of up to a maximum of US$6.0 million, payable in cash, subject to
continuing employment and the achievement of certain annual and cumulative performance thresholds of the EdgePower business. The
payment is calculated as 20% of EBITDA for the EdgePower business for the years of 2019–2021 with minimum thresholds that
must be met. As at the acquisition date, the amount recognized for management remuneration was $nil. As at March 2019, the acquisition
accounting for EdgePower has been finalized and closed.   43.
 JUST ENERGY GROUP INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED MARCH 31, 2019(in thousands of Canadian dollars, except where indicated and per share amounts)
   The following
is the final purchase price allocation for EdgePower:  NET ASSETS ACQUIREDWorking capital
    $993Intangible assets
    14,198Goodwill
    7,673Deferred tax liabilities
    (3,820)Total consideration
    $19,044Cash paid, net of working capital adjustment
    $10,078Common shares issued
    8,966Total consideration
    $19,044
  (b)Acquisition of Filter Group Inc. (“Filter Group”)   On October 1, 2018, Just Energy acquired Filter Group,
a leading provider of subscription-based home water filtration systems to residential customers in Canada and the U.S. Headquartered
in Toronto, Ontario, Filter Group currently provides under-counter and whole-home water filtration solutions to residential markets
in the provinces of Ontario and Manitoba and the states of Nevada, California, Arizona, Michigan and Illinois.  Just Energy acquired all of the issued and outstanding
shares of Filter Group and the shareholder loan owing by Filter Group. In addition, Filter Group had approximately $22 million
of third party Filter Group debt. The aggregate consideration payable by Just Energy under the Purchase Agreement is composed of:
(i) $14.3 million in cash, fully payable within 180 days of closing; and (ii) earn-out payments of up to 9.5 million Just Energy
common shares (with up to an additional 2.4 million Just Energy common shares being issuable to satisfy dividends that otherwise
would have been paid in cash on the Just Energy shares issuable pursuant to the earn-out payments (the “DRIP Shares”)),
subject to customary closing adjustments. The earn-out payments are contingent on the achievement by Filter Group of certain performance-based
milestones specified in the Purchase Agreement in each of the first three years following the closing of the acquisition. In addition,
the earn-out payments may be paid 50% in cash and the DRIP Shares 100% in cash, at the option of Just Energy.  44.
 JUST ENERGY GROUP INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED MARCH 31, 2019(in thousands of Canadian dollars, except where indicated and per share amounts)
     The CEO of Filter Group is the son of the Executive Chair
of Just Energy. As such, this is a related party transaction. The transaction was reviewed by the Strategic Initiatives Committee
and it received a fairness opinion from National Bank Financial on the transaction.  Of the $14.3 million cash consideration for the acquisition
of Filter Group, $1.3 million relates to the purchase of the shares of Filter Group. The remaining $13.0 million is for the assumption
of a shareholder debt owed to a related party, of which $3.0 million was already paid on the closing date of October 1, 2018. Therefore,
as at March 31, 2019, $11.3 million of the overall cash consideration payable is included in current trade and other payables of
the consolidated statements of financial position, of which $11.1 million is for a related party. The outstanding balance accrued
interest at a rate of 1% per month, beginning October 1, 2018, which resulted in $0.7 million of interest accrued as at March 31,
2019, of which $0.6 million is for a related party.  The contingent consideration relating to the potential
earn-out payments over the next three years was valued at approximately $24.9 million on October 1, 2018, which is the mid-point
of the calculated range of $23.1 million to $26.8 million. As it does not meet the definition of equity, it is carried at fair
value through profit or loss and is revalued at each reporting period. Significant assumptions affecting the measurement of contingent
consideration each quarter include the Just Energy share price and the performance of Filter Group.    Each quarter the contingent consideration related to the
Filter Group acquisition is revalued. To estimate the number of Just Energy common shares that are exchanged in each period, a
Monte Carlo simulation model was used where the trailing 12-month adjusted EBITDA for each period is forecasted based on a Geometric
Brownian Motion process. Inputs used in the Monte Carlo simulation model are as follows:   ·Adjusted trailing 12-months EBITDA as
at each quarter-end date; ·Average EBITDA forecasts for new periods; ·Implied asset volatility; ·Equity volatility of Just Energy; ·Underlying asset price of Just Energy
common shares; ·Dividend yield; and ·Risk-free rate.   Based on the foregoing, the value of the contingent consideration
as at March 31, 2019 is in the range of $27.1 million to $31.2 million, with a mid-point of $29.1 million. The change in fair value
of the contingent consideration at October 1, 2018 of $24.9 million to the fair value at March 31, 2019 of $29.1 million results
in a change of $4.2 million reported in other income (net), in the consolidated statements of income (loss).   45.
 JUST ENERGY GROUP INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED MARCH 31, 2019(in thousands of Canadian dollars, except where indicated and per share amounts)
    The following is the purchase price allocation for Filter
Group:   NET ASSETS ACQUIREDWorking capital
    $898Property and equipment
    6,154Intangible assets
    15,600Goodwill
    38,217Long-term debt
    (21,611)Total consideration
    $39,258Cash consideration
    $3,000Payable to shareholders
    11,314Contingent consideration
    24,944Total consideration
    $39,258
   The goodwill was calculated as the difference between the
fair value of consideration transferred and the fair value of the assets acquired and liabilities assumed. The goodwill acquired
as part of the acquisition primarily represents Filter Group’s workforce, operational and strategic management processes
and synergies between Just Energy and Filter Group. Goodwill is not amortized for accounting.  For the year ended March 31, 2019, Just Energy recorded
$1.2 million of administration expenses associated with the Filter Group acquisition, primarily related to due diligence and professional
fee expenditures.  As at March 31, 2019, Filter Group revenues of $6.3 million
and profit of $0.3 million were included in the consolidated statements of profit (loss) since October 1, 2018. On a pro forma
basis, Just Energy’s consolidated revenue and earnings for the year ended March 31, 2019 would have been higher by approximately
$11.3 million and lower by $4.8 million, respectively, had the Filter Group acquisition occurred on April 1, 2018.  As of March 31, 2019, the acquisition accounting for Filter
Group has been finalized and closed.






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18.DISCONTINUED OPERATIONS   In March 2019, Just Energy formally approved and commenced
a process to dispose of its businesses in Germany, Ireland and Japan. The decision was part of a strategic transition to focus
on the core business in North America and the U.K. The disposal of the operations is expected to be completed within the next 12
months. At March 31, 2019 these operations were classified as a disposal group held for sale and as a discontinued operation. Previously,
these operations were reported within the Consumer segment. The tax impact on the discontinued operations is minimal.   The results of the discontinued
operations are presented below:  2019
    2018Sales
    $19,729
    $3,012Cost of sales
    19,347
    2,596Gross margin
    382
    416ExpensesAdministrative, selling and operating expenses
    12,079
    8,455Operating loss
    (11,697)
    (8,039)Change in fair value of derivative instruments and other
    -
    (37)Other income (loss)
    (199)
    2,134Loss from discontinued operations before the undernoted
    (11,896)
    (5,942)Provision for income tax expense
    4
    3Impairment loss recognized on the remeasurement to estimate fair value less costs to sell
    10,479
    -LOSS FROM DISCONTINUED OPERATIONS
    $(22,379)
    $(5,945)Cash flows used in operating activities
    $(13,194)
    (9,259)Cash flows used in investing activities
    $(1,316)
    $(2,252)Cash flows from financing activities
    $13,856
    $12,236
  46.
 JUST ENERGY GROUP INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED MARCH 31, 2019(in thousands of Canadian dollars, except where indicated and per share amounts)
   Assets
and liabilities of the discontinued operations classified as held for sale as at March 31, 2019 were:  ASSETSCurrent assetsCash and cash equivalents
    $628Current trade and other receivables
    3,007Income taxes recoverable
    50Other current assets
    3,087Non-current assetsProperty and equipment
    42Intangible assets
    2,157ASSETS CLASSIFIED AS HELD FOR SALE
    $8,971LiabilitiesTrade and other payables
    $4,902Deferred revenue
    298LIABILITIES RELATING TO ASSETS CLASSIFIED
    AS HELD FOR SALE
    $5,200
   The $5.1 million goodwill associated with German operations was fully impaired in fiscal 2019 following the formal decision to commence the disposal of the business.








19.LONG-TERM DEBT AND FINANCING  Maturity
    March 31, 2019
    March 31, 2018Credit facility (a)
    September 1, 2020
    $201,577
    $122,115Less: Debt issue costs (a)
    
    (1,824)
    (664)Filter Group financing (b)
    
    17,577
    -8.75% loan (c)
    September 12, 2023
    240,094
    -6.75% $100M convertible debentures (d)
    March 31, 2023
    87,520
    85,7606.75% $160M convertible debentures (e)
    December 31, 2021
    150,945
    148,1466.5% convertible bonds (f)
    July 29, 2019
    29,483
    188,147725,372
    543,504Less: Current portion
    
    (37,429)
    (121,451)$687,943
    $422,053
   47.
 JUST ENERGY GROUP INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED MARCH 31, 2019(in thousands of Canadian dollars, except where indicated and per share amounts)
   Future annual minimum repayments are as follows:  Less than 
1 year
    1–3 years
    4–5 years
    More than 
5 years
    TotalCredit facility (a)
    $-
    $201,577
    $-
    $-
    $201,577Filter Group financing (b)
    9,217
    8,987
    1,186
    -
    19,3908.75% loan (c)
    -
    -
    270,801
    -
    270,8016.75% $100M convertible debentures (d)
    -
    -
    100,000
    -
    100,0006.75% $160M convertible debentures (e)
    -
    -
    160,000
    -
    160,0006.5% convertible bonds (f)
    29,933
    -
    -
    -
    29,933$39,150
    $210,564
    $531,987
    $-
    $781,701
   The details for long-term debt are as follows:  As at 
April 1, 
2018
    Cash 
inflows/ 
(outflows)
    Foreign 
Exchange
    Non-cash 
changes
    As at 
March 31, 
2019Credit facility (a)
    $121,451
    $77,638
    $-
    $664
    $199,753Filter Group financing (b)
    -
    17,577
    -
    -
    17,5778.75% loan (c)
    -
    236,934
    4,553
    (1,393)
    240,0946.75% $100M convertible debentures (d)
    85,760
    -
    -
    1,760
    87,5206.75% $160M convertible debentures (e)
    148,146
    -
    -
    2,799
    150,9456.5% convertible bonds (f)
    188,147
    (169,333)
    3,508
    7,161
    29,483$543,504
    $162,816
    $8,061
    $10,991
    $725,372Less: Current portion
    (121,451)
    -
    -
    -
    (37,429)$422,053
    $162,816
    $8,061
    $10,991
    $687,943
  As at 
April 1, 
2017
    Cash 
inflows/ 
(outflows)
    Foreign 
Exchange
    Non-cash 
changes
    As at 
March 31, 
2018Credit facility (a)
    $66,001
    $53,857
    $-
    $1,593
    $121,4516.75% $100M convertible debentures (d)
    -
    95,869
    -
    (10,109)
    85,7606.75% $160M convertible debentures (e)
    145,579
    -
    -
    2,567
    148,1466.5% convertible bonds (f)
    190,486
    -
    (6,101)
    3,762
    188,1475.75% convertible debentures (g)
    96,022
    (100,000)
    -
    3,978
    -$498,088
    $49,726
    $(6,101)
    $1,791
    $543,504Less: Current portion
    -
    -
    -
    -
    (121,451)$498,088
    $49,726
    $(6,101)
    $1,791
    $422,053
  48.
 JUST ENERGY GROUP INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED MARCH 31, 2019(in thousands of Canadian dollars, except where indicated and per share amounts)
    The following table details the finance costs for the year ended March 31. Interest is expensed based on the effective interest rate.   2019
    2018Credit facility (a)
    $20,715
    $12,883Filter Group financing (b)
    875
    -8.75% loan (c)
    8,999
    -6.75% $100M convertible debentures (d)
    8,819
    4976.75% $160M convertible debentures (e)
    13,598
    12,7736.5% convertible bonds (f)
    18,387
    15,7535.75% convertible debentures (g)
    -
    9,173Collateral management and others (h)
    16,679
    4,893$88,072
    $55,972
  (a)As of April 18, 2018, the Company has renegotiated an agreement with a syndicate of
lenders that includes Canadian Imperial Bank of Commerce, National Bank of Canada, HSBC Bank Canada, JPMorgan Chase Bank N.A.,
Alberta Treasury Branches, Canadian Western Bank and Morgan Stanley Senior Funding, Inc., a subsidiary of Morgan Stanley Bank
N.A. The agreement extends Just Energy’s credit facility for an additional two years to September 1, 2020. The facility
size was increased to $352.5 million from $342.5 million, with an accordion for Just Energy to draw up to $370 million. A certain
principal amount outstanding under the credit facility is guaranteed by Export Development Canada under its Account Performance
Security Guarantee Program.  Interest is payable on outstanding
loans at rates that vary with Bankers’ Acceptance rates, LIBOR, Canadian bank prime rate or U.S. prime rate. Under the terms
of the operating credit facility, Just Energy is able to make use of Bankers’ Acceptances and LIBOR advances at stamping
fees 3.750%. Prime rate advances are at a rate of bank prime (Canadian bank prime rate or U.S. prime rate) plus 2.750% and letters
of credit are at a rate of 3.750%. Interest rates are adjusted quarterly based on certain financial performance indicators.  As at March 31, 2019, the
Canadian prime rate was 3.95% and the U.S. prime rate was 5.5%. As at March 31, 2019, $201.6 million has been drawn against the
facility and total letters of credit outstanding as at March 31, 2019 amounted to $94.0 million (March 31, 2018 - $113.4 million).
As at March 31, 2019, Just Energy has $56.9 million of the facility remaining for future working capital and/or security requirements.
Just Energy’s obligations under the credit facility are supported by guarantees of certain subsidiaries and affiliates and
secured by a general security agreement and a pledge of the assets and securities of Just Energy and the majority of its operating
subsidiaries and affiliates excluding, primarily, the U.K. and other international operations. Just Energy is required to meet
a number of financial covenants under the credit facility agreement. As at March 31, 2019, the Company was compliant with all of
these covenants.  (b)Filter Group, which was acquired on October 1, 2018, has an outstanding loan payable
to Home Trust Company (“HTC”). The loan is a result of factoring receivables to finance the cost of rental equipment
over a period of three to five years with HTC and bears interest at 8.99% per annum. Principal and interest are repayable on a
monthly basis.  49.
 JUST ENERGY GROUP INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED MARCH 31, 2019(in thousands of Canadian dollars, except where indicated and per share amounts)
   (c)On September 12, 2018, Just Energy entered into a US$250 million non-revolving multi-draw senior unsecured
term loan facility (the “8.75% loan”) with Sagard Credit Partners, LP and certain funds managed by a leading U.S.-based
global fixed income asset manager. The 8.75% loan bears interest at 8.75% per annum payable semi-annually in arrears on June 30
and December 31 in each year plus fees, and will mature on September 12, 2023. Counterparties were issued 7.5 million warrants
at a strike price of $8.56 each, convertible to one Just Energy common stock. The value of these warrants has been assessed as
nominal. The 8.75% loan has three tranches. The first tranche of US$50 million is earmarked for general corporate purposes, including
to pay down Just Energy's credit facility. The second tranche of US$150 million is earmarked towards the settlement of Just Energy's
6.5% convertible bonds. The third tranche of US$50 million is earmarked for investments and future acquisitions. As at March 31,
2019, US$193.0 million was drawn from the 8.75% loan.  (d)On February 22, 2018, Just Energy issued $100 million of convertible unsecured senior
subordinated debentures (the “6.75% $100 million convertible debentures”). The 6.75% $100 million convertible debentures
bear interest at an annual rate of 6.75%, payable semi-annually in arrears on March 31 and September 30 in each year, and have
a maturity date of March 31, 2023. Each $1,000 principal amount of the 6.75% $100 million convertible debentures is convertible
at the option of the holder at any time prior to the close of business on the earlier of the maturity date and the last business
day immediately preceding the date fixed for redemption into 112.3596 common shares of Just Energy, representing a conversion
price of $8.90, subject to certain anti-dilution provisions. Holders who convert their debentures will receive accrued and unpaid
interest for the period from and including the date of the latest interest payment up to, but excluding, the date of conversion.  The 6.75% $100 million convertible
debentures will not be redeemable at the option of the Company on or before March 31, 2021. After March 31, 2021 and prior to March
31, 2022, the 6.75% $100 million convertible debentures may be redeemed in whole or in part from time to time at the option of
the Company on not more than 60 days’ and not less than 30 days’ prior notice, at a price equal to their principal
amount plus accrued and unpaid interest, provided that the weighted average trading price of the common shares of Just Energy on
the Toronto Stock Exchange (the “TSX”) for the 20 consecutive trading days ending five trading days preceding the date
on which the notice of redemption is given is at least 125% of the conversion price. On or after March 31, 2022, the 6.75% $100
million convertible debentures may be redeemed in whole or in part from time to time at the option of the Company on not more than
60 days’ and not less than 30 days’ prior notice, at a price equal to their principal amount plus accrued and unpaid
interest.   The conversion feature of the 6.75% $100 million convertible
debentures has been accounted for as a separate component of shareholders’ equity in the amount of $9.7 million. Upon initial
recognition of the convertible debentures, Just Energy recorded a deferred income tax liability of $2.6 million and reduced the
equity component of the convertible debentures by this amount. The remainder of the net proceeds of the 6.75% $100 million convertible
debentures has been recorded as long-term debt, which is being accreted up to the face value of $100 million over the term of the
6.75% $100 million convertible debentures using an effective interest rate of 10.7%. If the 6.75% $100 million convertible debentures
are converted into common shares, the value of the conversion will be reclassified to share capital along with the principal amount
converted. No amounts of the 6.75% $100 million convertible debentures have been converted or redeemed as at March 31, 2019.   (e)On October 5, 2016, Just Energy issued $160 million of convertible unsecured senior
subordinated debentures (the “6.75% $160 million convertible debentures”). The 6.75% $160 million convertible debentures
bear interest at an annual rate of 6.75%, payable semi-annually in arrears on June 30 and December 31 in each year, and have a
maturity date of December 31, 2021. Each $1,000 principal amount of the 6.75% $160 million convertible debentures is convertible
at the option of the holder at any time prior to the close of business on the earlier of the maturity date and the last business
day immediately preceding the date fixed for redemption into 107.5269 common shares of Just Energy, representing a conversion
price of $9.30, subject to certain anti-dilution provisions. Holders who convert their debentures will receive accrued and unpaid
interest for the period from and including the date of the latest interest payment up to, but excluding, the date of conversion.  50.
 JUST ENERGY GROUP INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED MARCH 31, 2019(in thousands of Canadian dollars, except where indicated and per share amounts)
   The 6.75% $160 million convertible
debentures will not be redeemable at the option of the Company on or before December 31, 2019. After December 31, 2019 and prior
to December 31, 2020, the 6.75% $160 million convertible debentures may be redeemed in whole or in part from time to time at the
option of the Company on not more than 60 days’ and not less than 30 days’ prior notice, at a price equal to their
principal amount plus accrued and unpaid interest, provided that the weighted average trading price of the common shares of Just
Energy on the TSX for the 20 consecutive trading days ending five trading days preceding the date on which the notice of redemption
is given is at least 125% of the conversion price. On or after December 31, 2020, the 6.75% $160 million convertible debentures
may be redeemed in whole or in part from time to time at the option of the Company on not more than 60 days’ and not less
than 30 days’ prior notice, at a price equal to their principal amount plus accrued and unpaid interest.   The conversion feature of the 6.75% $160 million convertible
debentures has been accounted for as a separate component of shareholders’ equity in the amount of $8.0 million. Upon initial
recognition of the convertible debentures, Just Energy recorded a deferred income tax liability of $2.1 million and reduced the
equity component of the convertible debentures by this amount. The remainder of the net proceeds of the 6.75% $160 million convertible
debentures has been recorded as long-term debt, which is being accreted up to the face value of $160 million over the term of the
6.75% $160 million convertible debentures using an effective interest rate of 9.1%. If the 6.75% $160 million convertible debentures
are converted into common shares, the value of the conversion will be reclassified to share capital along with the principal amount
converted. No amounts of the 6.75% $160 million convertible debentures have been converted or redeemed as at March 31, 2019.   (f)On January 29, 2014, Just Energy issued US$150 million of European-focused senior
convertible unsecured convertible bonds (the “6.5% convertible bonds”). The 6.5% convertible bonds bear interest at
an annual rate of 6.5%, payable semi-annually in arrears in equal installments on January 29 and July 29 in each year, and have
a maturity date of July 29, 2019.   A conversion right in respect of a bond may be exercised,
at the option of the holder thereof, at any time from May 30, 2014 to July 7, 2019. The initial conversion price is US$9.3762 per
common share (being C$10.2819) but is subject to adjustments. In the event of the exercise of a conversion right, the Company may,
at its option, subject to applicable regulatory approval and provided no event of default has occurred and is continuing, elect
to satisfy its obligation in cash equal to the market value of the underlying shares to be received.   As a result of the debt being
denominated in a different functional currency than that of Just Energy, the conversion feature is recorded as a financial liability
instead of a component of equity. Therefore, the conversion feature of the 6.5% convertible bonds has been accounted for as a separate
financial liability with an initial value of US$8,517. The remainder of the net proceeds of the 6.5% convertible bonds has been
recorded as long-term debt, which is being accreted up to the face value of $150.0 million over the term of the 6.5% convertible
bonds using an effective interest rate of 8.8%. At each reporting period, the conversion feature is recorded at fair value with
changes in fair value recorded through profit or loss. As at March 31, 2019, the fair value of this conversion feature is US$0.2
million and is included in other non-current financial liabilities. During the year, Just Energy redeemed US$127.6 million of the
outstanding balance.  51.
 JUST ENERGY GROUP INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED MARCH 31, 2019(in thousands of Canadian dollars, except where indicated and per share amounts)
   (g)In September 2011, Just Energy issued $100 million of convertible unsecured subordinated
debentures (the “5.75% convertible debentures”), which was used to fund an acquisition. The 5.75% convertible debentures
bear interest at an annual rate of 5.75%, payable semi-annually on March 31 and September 30 in each year, and have a maturity
date of September 30, 2018. Each $1,000 principal amount of the 5.75% convertible debentures is convertible at the option of the
holder at any time prior to the close of business on the earlier of the maturity date and the last business day immediately preceding
the date fixed for redemption into 56.0 common shares of Just Energy, representing a conversion price of $17.85. On or after September
30, 2016, the 5.75% convertible debentures may be redeemed in whole or in part from time to time at the option of the Company
on not more than 60 days’ and not less than 30 days’ prior notice, at a price equal to their principal amount plus
accrued and unpaid interest.  The Company
may, at its option, on not more than 60 days' and not less than 30 days' prior notice, subject to applicable regulatory approval
and provided no event of default has occurred and is continuing, elect to satisfy its obligation to repay all or any portion of
the principal amount of the 5.75% convertible debentures that are to be redeemed or that are to mature, by issuing and delivering
to the holders thereof that number of freely tradable common shares determined by dividing the principal amount of the 5.75% convertible
debentures being repaid by 95% of the current market price on the date of redemption or maturity, as applicable.  On March 27, 2018, Just Energy
redeemed the 5.75% convertible debentures. Of the amount paid, $99.5 million was recorded as a reduction in the liability component
of the 5.75% convertible debentures, a non-cash loss on early redemption of $0.5 million was classified as finance costs, and $7.1
million was recorded as an increase in contributed deficit.  (h)The collateral management and others include primarily collateral management costs of $5.1 million, a supplier credit term extension
charge of $4.8 million and accretion costs relating to the acquisition of RV of $5.1 million. High electricity prices in the
forward markets along with fundamental change in the Electric Reliability Council of Texas’s credit exposure calculations
in February 2018 led to an increase in collateral requirements for market participants during fiscal 2019.       52.
 JUST ENERGY GROUP INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED MARCH 31, 2019(in thousands of Canadian dollars, except where indicated and per share amounts)






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20.PROVISIONS   Restructuring  During
fiscal 2019, Just Energy’s management team approved several restructuring actions including targeted workforce reductions.
These actions include the elimination of over 200 positions. The actions are in direct alignment with Just Energy’s ongoing
transition to a consumer-focused company and are expected to generate future cost savings.   Amounts
related to restructuring during fiscal 2019 are as follows:  Employee-related
    $8,706Facilities
    1,987Transition agreements
    3,187Other non-headcount related
    2,198Total restructuring costs
    16,078Expended in the year
    9,462Provision at end of the year
    6,616Total restructuring costs
    $16,078
  The
remaining provision balance relate to other contingent liabilities.








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21.INCOME TAXES  (a)Tax expense  2019
    2018Current tax expense
    $6,329
    $2,552Deferred tax expense (benefit)Origination and reversal of temporary differences
    $(30,110)
    $129,177Benefit arising from previously unrecognized tax loss or temporary difference
    26,610
    (111,058)Deferred tax (benefit) expense
    (3,500)
    18,119Provision for income taxes
    $2,829
    $20,671
  53.
 JUST ENERGY GROUP INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED MARCH 31, 2019(in thousands of Canadian dollars, except where indicated and per share amounts)
   (b)Reconciliation of the effective tax rate  The provision for income taxes represents an effective
rate different than the Canadian corporate statutory rate of 26.50% (2018 – 26.50%).  2019
    2018Income before income taxes
    $(120,035)
    $539,248Combined statutory Canadian federal and provincial income tax rate
    26.50%
    26.50%Income tax expense based on statutory rate
    $(31,809)
    $142,901Increase (decrease) in income taxes resulting from:Expense (benefit) of mark to market loss and other temporary differences not
    recognized
    $26,610
    $(111,058)Variance between combined Canadian tax rate and the tax rate applicable to foreign earnings
    1,993
    1,000Other permanent items
    6,035
    (12,172)Total provision for income taxes
    $2,829
    $20,671
  (c)Recognized deferred income tax assets and liabilities  Recognized deferred income tax assets and liabilities
are attributed to the following:  2019
    2018Mark to market losses on derivative instruments
    $10,336
    $17,580Tax losses and excess of tax basis over book basis
    99,218
    78,825Total deferred income tax assets
    109,554
    96,405Offset of deferred income taxes
    (104,186)
    (93,873)Net deferred tax assets
    $5,368
    $2,532Partnership income deferred for tax purposes
    $(3,542)
    $(6,249)Mark to market gains on derivative instruments
    (20,683)
    (54,158)Book to tax differences on other assets
    (73,889)
    (30,480)Convertible debentures
    (6,073)
    (2,986)Total deferred income tax liabilities
    (104,187)
    (93,873)Offset of deferred income taxes
    104,187
    93,873Net deferred income tax liabilities
    $-
    $-
  54.
 JUST ENERGY GROUP INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED MARCH 31, 2019(in thousands of Canadian dollars, except where indicated and per share amounts)
   (d)Movement in deferred income tax balances  Balance 
April 1, 
2018
    Recognized 
in profit or 
loss
    Recognized 
in OCI
    Other
    Balance 
March 31, 
2019Partnership income deferred for tax
    $(6,249)
    $2,707
    $-
    $-
    $(3,542)Book to tax differences
    48,345
    (22,351)
    (638)
    (26)
    25,330Mark to market (gains) losses on derivative instruments
    (36,578)
    26,231
    -
    -
    (10,347)Convertible debentures
    (2,986)
    (3,087)
    -
    -
    (6,073)$2,532
    $3,500
    $(638)
    $(26)
    $5,368
  Balance 
April 1, 
2017
    Recognized 
in profit or 
loss
    Recognized 
in OCI
    Other
    Balance 
March 31, 
2018Partnership income deferred for tax
    $(8,281)
    $2,032
    $-
    $-
    $(6,249)Book to tax differences
    4,269
    51,864
    (7,788)
    -
    48,345Mark to market (gains) losses on derivative instruments
    29,424
    (66,002)
    -
    -
    (36,578)Convertible debentures
    (4,144)
    1,158
    -
    -
    (2,986)$21,268
    $(10,948)
    $(7,788)
    $-
    $2,532
  (e)Unrecognized deferred income tax assets  Deferred income tax assets not reflected as at March
31 are as follows:  2019
    2018Excess of tax over book basis
    16,903
    15,824
  Losses available for carryforward (recognized and unrecognized) are set to expire as follows:  20192030
    $136,7632031
    -Total
    $136,763
   55.
 JUST ENERGY GROUP INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED MARCH 31, 2019(in thousands of Canadian dollars, except where indicated and per share amounts)






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22.SHAREHOLDERS’ CAPITAL  Just Energy is authorized to issue
an unlimited number of common shares and 50,000,000 preference shares issuable in series, both with no par value. Shares outstanding
have no preferences, rights or restrictions attached to them.  Details of issued and outstanding
shareholders’ capital are as follows:  Year ended March 31, 2019
    Year ended March 31, 2018Shares
    Amount
    Shares
    AmountCommon shares:Issued and outstandingBalance, beginning of year
    148,394,152
    $1,079,055
    147,013,538
    $1,070,076Share-based awards exercised
    1,201,800
    9,483
    1,643,156
    11,954Acquisition
    -
    -
    1,415,285
    8,966Repurchase and cancellation of shares
    -
    -
    (1,677,827)
    (11,941)Balance, end of year
    149,595,952
    $1,088,538
    148,394,152
    $1,079,055Preferred shares:Issued and outstandingBalance, beginning of year
    4,323,300
    $136,771
    4,040,000
    $128,363Shares issued for cash
    338,865
    10,447
    283,300
    9,260Preferred shares issuance cost
    -
    (253)
    -
    (852)Balance, end of year
    4,662,165
    $146,965
    4,323,300
    $136,771Shareholders' capital
    154,258,117
    $1,235,503
    152,717,452
    $1,215,826






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23.SHARE-BASED COMPENSATION PLANS  (a)Stock option plan   Just Energy may grant awards under its 2010 share option
plan (formerly the 2001 Unit Option Plan) to directors, officers, full-time employees and service providers (non-employees) of
Just Energy and its subsidiaries and affiliates. In accordance with the share option plan, Just Energy may grant options to a maximum
of 11,300,000 shares. As at March 31, 2019, there were 814,166 options still available for grant under the plan. Of the options
issued, 500,000 options remain outstanding as at March 31, 2019 with an exercise price of $7.88. The exercise price of the share
options equals the closing market price of the Company’s shares on the last business day preceding the grant date. The share
options vest over periods ranging from three to five years from the grant date and expire after five or ten years from the grant
date. There were no new grants during fiscal 2019.   (b)Restricted share grants   Just Energy grants awards under the 2010 RSGs Plan (formerly
the 2004 unit appreciation rights) in the form of fully paid RSGs to senior officers, employees and service providers of its subsidiaries
and affiliates. As at March 31, 2019, there were 2,717,774 RSGs (2018 - 3,004,624) still available for grant under the plan. Of
the RSGs issued, 1,473,989 remain outstanding as at March 31, 2019 (2018 - 1,635,882). Except as otherwise provided, (i) the RSGs
vest from one to five years from the grant date providing, in most cases, on the applicable vesting date the RSG grantee continues
as a senior officer, employee or service provider of Just Energy or any affiliate thereof; (ii) the RSGs expire no later than ten
years from the grant date; (iii) a holder of RSGs is entitled to payments at the same rate as dividends paid to JEGI shareholders;
and (iv) when vested, the holder of an RSG may exchange one RSG for one common share.   56.
 JUST ENERGY GROUP INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED MARCH 31, 2019(in thousands of Canadian dollars, except where indicated and per share amounts)
   There are 40,000 RSGs granted
to senior management that do not receive dividend payments. In addition to a continued employment condition for vesting, there
are certain share price targets that must be met.  RSGs available for grant  2019
    2018Balance, beginning of year
    3,004,624
    4,107,830Less: Granted
    (788,211)
    (1,716,743)Add: Cancelled/forfeited
    501,361
    613,537Balance, end of year
    2,717,774
    3,004,624
  The average grant date fair value of RSGs
granted in the year was $5.00 (2018 - $6.94).  (c)Performance bonus grants   Just Energy grants awards under the 2013 performance bonus
incentive plan (the “PBG Plan”) in the form of fully paid PBGs to senior officers, employees, consultants and service
providers of its subsidiaries and affiliates. As at March 31, 2019, there were 2,182,302 (2018 - 2,270,480) PBGs still available
for grant under the PBG Plan. Of the PBGs issued, 385,214 remain outstanding as at March 31, 2019 (2018 -1,050,094). Except as
otherwise provided, (i) the PBGs will entitle the holder to be paid in three equal installments as one-third on each of the first,
second and third anniversaries of the grant date providing, in most cases, on the applicable vesting date the PBG grantee continues
as a senior officer, employee, consultant or service provider of Just Energy or any affiliate thereof; (ii) the PBGs expire no
later than three years from the grant date; (iii) a holder of PBGs is entitled to payments at the same rate as dividends paid to
JEGI shareholders; and (iv) when vested, Just Energy, at its sole discretion, shall have the option of settling payment for the
PBGs, to which the holder is entitled in the form of either cash or in common shares.   PBGs
available for grant 2019
    2018Balance, beginning of year
    2,270,480
    2,650,513Less: Granted
    (331,196)
    (812,787)Add: Cancelled/forfeited
    243,018
    432,754Balance, end of year
    2,182,302
    2,270,480
  The average
grant date fair value of PBGs granted in the year was $5.01 (2018 - $7.08).  (d)Deferred share grants    Just Energy grants awards under its 2010 Directors’
Compensation Plan (formerly the 2004 Directors’ deferred unit grants, “DUGs”) to all independent directors on
the basis that each director is required to annually receive 15% of their compensation entitlement in DSGs and may elect to receive
all or any portion of the balance of their annual compensation in DSGs. The holders of DSGs and/or common shares are also granted
additional DSGs on a quarterly basis equal to the monthly dividends paid to the shareholders of Just Energy. The DSGs vest on the
earlier of the date of the director's resignation or three years following the date of grant and expire ten years following the
date of grant. As at March 31, 2019, there were nil DSGs (2018 - 69,481) available for grant under the plan. In fiscal 2019, with
the consent of the TSX 37,123 DSGs have been granted to directors, subject to shareholder approval. The Company will be requesting
shareholder approval at its Annual and Special meeting on June 26, 2019. Of the DSGs issued, 184,430 DSGs (2018 - 114,949) remain
outstanding as at March 31, 2019.   57.
 JUST ENERGY GROUP INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED MARCH 31, 2019(in thousands of Canadian dollars, except where indicated and per share amounts)
   DSGs
available for grant  2019
    2018Balance, beginning of year
    69,481
    110,012Less: Granted
    (69,481)
    (40,531)Balance, end of year
    -
    69,481
   The weighted average grant date fair value of DSGs granted in the year was $4.48 (2018 - $6.32).






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24.REPORTABLE BUSINESS SEGMENTS  Just
Energy’s reportable segments are Consumer Energy and Commercial Energy. Just Energy has aggregated the operating segments
into these reportable segments on the basis that the operating segments share economic characteristics. These characteristics include
the nature of the product and services sold, the distribution methods, and the type of customer class and regulatory environment.  Transactions
between segments are in the normal course of operations and are recorded at the exchange amount. Allocations made between segments
for shared assets or allocated expenses are based on the number of residential customer equivalents in the respective segments.   Management
monitors the operating results of its business units separately for the purpose of making decisions about resource allocation and
performance assessment. Segment performance is evaluated based on operating profit or loss and is measured consistently with operating
profit or loss in the consolidated financial statements. Just Energy does not have any key customers.   Corporate
and shared services report the costs related to management oversight of the business units, public reporting and filings, corporate
governance and other shared services functions.  58.
 JUST ENERGY GROUP INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED MARCH 31, 2019(in thousands of Canadian dollars, except where indicated and per share amounts)
   For the year ended March 31, 2019:  Consumer segment
    Commercial segment
    Corporate and
                                                                   shared services
    ConsolidatedSales
    $2,395,624
    $1,416,846
    $-
    $3,812,470Gross margin
    535,711
    176,504
    -
    712,215Depreciation of property, plant and equipment
    4,567
    204
    -
    4,771Amortization of intangible assets
    20,440
    2,215
    -
    22,655Administrative expenses
    76,709
    40,693
    89,418
    206,820Selling and marketing expenses
    158,770
    73,260
    -
    232,030Restructuring costs
    3,173
    4,069
    8,836
    16,078Other operating expenses
    78,460
    9,130
    -
    87,590Operating profit (loss) for the period
    $193,592
    $46,933
    $(98,254)
    $142,271Finance costs
    
    
    
    (88,072)Change in fair value of derivative instruments and other
    
    
    
    (153,226)Other income, net
    
    
    
    1,365Provision for income taxes
    
    
    
    (2,829)Loss for the year from continued operations
    
    
    
    (100,491)Loss from discontinued operations
    
    
    
    (22,379)Loss for the year
    
    
    
    $(122,870)Capital expenditures
    $39,475
    $4,068
    $-
    $43,543As at March 31, 2019Total goodwill
    $181,358
    $158,563
    $-
    $339,921Total assets
    $1,284,435
    $461,633
    $-
    $1,746,068Total liabilities
    $1,513,583
    $201,935
    $-
    $1,715,518
   59.
 JUST ENERGY GROUP INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED MARCH 31, 2019(in thousands of Canadian dollars, except where indicated and per share amounts)
   For the year ended March 31, 2018:  Consumer segment
    Commercial segment
    Corporate and
                                                                                shared services
    ConsolidatedSales
    $2,232,081
    $1,391,477
    $-
    $3,623,558Gross margin
    487,175
    153,336
    -
    640,511Depreciation of property and equipment
    3,775
    340
    -
    4,115Amortization of intangible assets
    12,707
    3,992
    -
    16,699Administrative expenses
    64,282
    29,153
    93,815
    187,250Selling and marketing expenses
    161,246
    70,982
    -
    232,228Other operating expenses
    69,690
    4,800
    -
    74,490Operating profit (loss) for the period
    $175,475
    $44,069
    $(93,815)
    $125,729Finance costs
    
    
    
    (55,972)Change in fair value of derivative instruments and other
    
    
    
    474,393Other income, net
    
    
    
    1,040Provision for income taxes
    
    
    
    (20,671)Profit for the year from continued operations
    
    
    
    $524,519Loss from discontinued operations
    
    
    
    (5,945)Profit for the year
    
    
    
    518,574Capital expenditures
    $32,252
    $3,524
    $-
    $35,776As at March 31, 2018Total goodwill
    $147,252
    $153,421
    $-
    $300,673Total assets
    $1,135,325
    $466,068
    $-
    $1,601,393Total liabilities
    $844,379
    $540,479
    $-
    $1,384,858
  Sales
from external customers  The revenue is based on the location of the customer.  For the year ended March 31, 2019
    For the year ended March 31, 2018Canada
    $413,836
    $414,183U.S.
    2,624,602
    2,465,794U.K.
    774,032
    743,581Total
    $3,812,470
    $3,623,558
   60.
 JUST ENERGY GROUP INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED MARCH 31, 2019(in thousands of Canadian dollars, except where indicated and per share amounts)
   Non-current assets   Non-current assets by geographic segment consist of property and equipment and intangible assets and are summarized as follows:  As at March 31, 2019
    As at March 31, 2018Canada
    $266,775
    $201,985U.S.
    223,802
    207,147International
    7,941
    11,687Total
    $498,518
    $420,819






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25.OTHER EXPENSES  (a)Other operating expenses  For the year ended March 31, 2019
    For the year ended March 31, 2018Amortization of intangible assets
    $22,655
    $16,547Depreciation of property and equipment
    4,771
    4,073Bad debt expense
    81,037
    56,331Share-based compensation
    6,133
    18,353Other
    420
    -$115,016
    $95,304
  (b)Amortization and energy costs included in cost of sales in the consolidated statements of income
(loss)  For the year ended March 31, 2019
    For the year ended March 31, 2018Amortization
    $2,666
    $3,116Direct energy costs and other
    3,097,589
    2,983,047$3,100,255
    $2,986,163
  (c)Employee benefits expense  For the year ended March 31, 2019
    For the year ended March 31, 2018Wages, salaries and commissions
    $264,566
    $237,867Benefits
    24,239
    24,100$288,805
    $261,967
   61.
 JUST ENERGY GROUP INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED MARCH 31, 2019(in thousands of Canadian dollars, except where indicated and per share amounts)




26.IMPAIRMENT TESTING OF GOODWILL AND INTANGIBLE ASSETS
WITH INDEFINITE LIVES  Goodwill acquired through business
combinations and intangible assets with indefinite lives have been allocated to one of four operating segments. These segments
are the U.K. Consumer, North America Consumer, U.K. Commercial, and North America Commercial. The goodwill associated with the
Filter Group acquisition was not allocated to an operating segment for the purposes of impairment testing as at March 31, 2019.  For impairment testing, goodwill
and brand have been allocated as follows as at March 31, 2019:  Consumer segment
    Commercial segmentNorth America
    U.K.
    North AmericaGoodwill
    $168,003
    $13,355
    $158,563Brand
    19,570
    -
    14,734$187,573
    $13,355
    $173,297
    The goodwill of $38.2 million
associated with the acquisition of Filter Group has been allocated to the Consumer segment for the purposes of goodwill impairment
testing.   Just Energy considers the
relationship between its market capitalization and its book value, among other factors, when reviewing for indicators of impairment.
As at March 31, 2019, the market capitalization of Just Energy was above the book value of its equity.  The recoverable amount of
each of the operating segments has been determined based on a fair value less costs of disposal model using fiscal 2019’s
EBITDA of the operating segment multiplied by the entity’s EBITDA multiple. The EBITDA multiple and the EBITDA of the segment
that has been utilized in the fair value less costs to disposal model are consistent with external sources of information and are
considered a Level 2 input within the fair value hierarchy.






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27.EARNINGS (LOSS) PER SHARE  For the year ended March 31, 2019
    For the year ended March 31, 2018BASIC EARNINGS (LOSS) PER SHAREEarnings (loss) from continuing operations available to shareholders
    $(100,299)
    $515,221Dividend to preferred shareholders - net of tax
    8,959
    8,364Earnings (loss) from continuing operations available to shareholders - net
    (109,258)
    506,857Basic weighted average shares outstanding
    149,138,797
    147,039,737Basic earnings (loss) per share from continuing operations available to shareholders
    $(0.73)
    $3.45Basic earnings (loss) per share available to shareholders
    $(0.88)
    $3.42DILUTED EARNINGS (LOSS) PER SHAREEarnings (loss) from continuing operations available to shareholders
    $(109,258)
    506,857Adjustment for dilutive impact of convertible debentures
    -
    22,407Adjusted earnings (loss) from continuing operations available to shareholders
    $(109,258)
    $529,264Basic weighted average shares outstanding
    149,138,797
    147,039,737Dilutive effect of:Restricted share and performance bonus grants
    2,409,9901
    2,924,587Deferred share grants
    142,9281
    95,536Convertible debentures
    39,574,8311
    49,979,055Shares outstanding on a diluted basis
    191,266,546
    200,038,915Diluted earnings (loss) from continuing operations per share available to shareholders
    $(0.73)
    $2.65Diluted earnings (loss) per share available to shareholders
    $(0.88)
    $2.62
   1The assumed conversion into shares results in an anti-dilutive
position; therefore, these items have not been included in the computation of diluted earnings (loss) per share.    The potentially dilutive instruments are the convertible features on the 6.5% convertible bonds, 6.75% $160M conertible debentures
and 6.75% $100M convertible debentures as well as the stock options and share grants.  62.
 JUST ENERGY GROUP INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED MARCH 31, 2019(in thousands of Canadian dollars, except where indicated and per share amounts)




28.CAPITAL DISCLOSURE  Just Energy defines capital as
shareholders’ equity (excluding accumulated other comprehensive income) and long-term debt. Just Energy’s objectives
when managing capital are to maintain flexibility by:  (i)enabling it to operate efficiently;  (ii)providing liquidity and access to capital for growth opportunities; and  (iii)providing returns and generating predictable cash flows for dividend payments to shareholders.  Just Energy manages the capital
structure and makes adjustments to it in light of changes in economic conditions and the risk characteristics of the underlying
assets. The Board of Directors does not establish quantitative return on capital criteria for management, but rather promotes year-over-year
sustainable and profitable growth. Just Energy’s capital management objectives have remained unchanged from the prior year.
Just Energy is not subject to any externally imposed capital requirements other than financial covenants in its long-term debts,
and as at March 31, 2019 and 2018, all of these covenants have been met.






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29.RELATED PARTY TRANSACTIONS AND KEY MANAGEMENT PERSONNEL REMUNERATION  Parties are considered to be related
if one party has the ability to control the other party or exercise influence over the other party in making financial or operating
decisions. The definition includes subsidiaries and other persons.  Subsidiaries  Transactions between Just Energy
and its subsidiaries meet the definition of related party transactions. These transactions are eliminated on consolidation and
are not disclosed in these consolidated financial statements.  63.
 JUST ENERGY GROUP INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED MARCH 31, 2019(in thousands of Canadian dollars, except where indicated and per share amounts)
   Key management
personnel  Just Energy’s key management
personnel and persons connected with them are also considered to be related parties for disclosure purposes. Key management personnel
are defined as those individuals having authority and responsibility for planning, directing and controlling the activities of
Just Energy and consist of the Executive Chair, the Chief Executive Officer and the Chief Financial Officer.  During the years ended March 31,
2019 and 2018, Just Energy recorded the following as expenses related to these individuals:  March 31, 2019
    March 31, 2018Salaries and benefits
    $2,493
    $8,939Share-based compensation, net
    1,163
    3,738$3,656
    $12,677
    In fiscal 2018, the key management personnel consisted
of the Executive Chair, two Chief Executive Officers and the Chief Financial Officer. The key management personnel expenses for
the prior year also include severance and executive bonuses not included in fiscal 2019.    As at March 31, 2019, key management personnel held approximately
669,688 RSGs/PBGs (2018 – 1,774,094).






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30.DIVIDENDS PAID  For the year ended March 31, 2019,
dividends of $0.50 (2018 - $0.50) per common share were declared by Just Energy. These dividends amounted to $74,557 (2018 - $73,624)
and were approved by the Board of Directors and were paid out during the year.   For the year ended March 31, 2019,
distributions of $0.50 (2018 - $0.50) per common share for share grants was declared by Just Energy. This distribution amounted
to $1,284 (2018 - $1,302) which was paid in accordance with the terms of the Canadian and U.S. Plans during the year.  For the year ended March 31, 2019,
dividends of US$2.125 (2018 - $2.125) per preferred share were declared by Just Energy. These dividends amounted to $12,189 (2018
- $11,380) and were approved by the Board of Directors and were paid out during the year.






31.COMMITMENTS AND GUARANTEES  Commitments
for each of the next five years and thereafter are as follows:  As at March 31, 2019  Less than 
1 year
    1–3 years
    4–5 years
    More than 
5 years
    TotalPremises and equipment leasing
    $5,035
    $9,902
    $6,306
    $-
    $21,243Gas, electricity and non-commodity contracts
    1,899,713
    1,439,479
    119,212
    42,089
    3,500,493$1,904,748
    $1,449,381
    $125,518
    $42,089
    $3,521,736
  Just Energy has entered into leasing
contracts for office buildings and administrative equipment. These leases have a leasing period of between one and eight years.
No purchase options are included in any major leasing contracts. Just Energy is also committed under long-term contracts with customers
to supply gas and electricity. These contracts have various expiry dates and renewal options.  64.
 JUST ENERGY GROUP INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED MARCH 31, 2019(in thousands of Canadian dollars, except where indicated and per share amounts)
   (a)Surety bonds and letters of credit  Pursuant to
separate arrangements with Westchester Fire Insurance Company, Travelers Casualty and Surety Company of America, Berkley Insurance
Company and Charter Brokerage LLC, Just Energy has issued surety bonds to various counterparties including states, regulatory bodies,
utilities and various other surety bond holders in return for a fee and/or meeting certain collateral posting requirements. Such
surety bond postings are required in order to operate in certain states or markets. Total surety bonds issued as at March 31, 2019
amounted to $70.3 million.  As at March 31, 2019, Just Energy had total letters
of credit outstanding in the amount of $94.0 million (Note 19(a)).  (b)Officers and directors  Corporate indemnities have been
provided by Just Energy to all directors and certain officers of its subsidiaries and affiliates for various items including, but
not limited to, all costs to settle suits or actions due to their association with Just Energy and its subsidiaries and/or affiliates,
subject to certain restrictions. Just Energy has purchased directors’ and officers’ liability insurance to mitigate
the cost of any potential future suits or actions. Each indemnity, subject to certain exceptions, applies for so long as the indemnified
person is a director or officer of one of Just Energy’s subsidiaries and/or affiliates. The maximum amount of any potential
future payment cannot be reasonably estimated.  (c)Operations  In the normal course of business,
Just Energy and/or Just Energy’s subsidiaries and affiliates have entered into agreements that include guarantees in favour
of third parties, such as purchase and sale agreements, leasing agreements and transportation agreements. These guarantees may
require Just Energy and/or its subsidiaries to compensate counterparties for losses incurred by the counterparties as a result
of breaches in representation and regulation or as a result of litigation claims or statutory sanctions that may be suffered by
the counterparty as a consequence of the transaction. The maximum payable under these guarantees is estimated to be $104.9 million.






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32.SUPPLEMENTAL CASH FLOW INFORMATION  (a)Adjustments
required to reflect net cash receipts from gas sales  2019
    2018Changes in:Accrued gas receivable
    $2,256
    $459Gas delivered in excess of consumption
    (405)
    516Accrued gas payable
    676
    (276)Deferred revenue
    1,659
    (3,575)$4,186
    $(2,876)
   65.
 JUST ENERGY GROUP INC.NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED MARCH 31, 2019(in thousands of Canadian dollars, except where indicated and per share amounts)
   (b)Net change
in working capital  As at March 31, 2019
    As at March 31, 2018Accounts receivable and unbilled revenue
    $(92,923)
    $(108,900)Gas in storage
    (601)
    538Prepaid expenses and deposits
    (88,184)
    (15,534)Provisions
    4,309
    (3,501)Trade and other payables
    53,261
    90,972$(124,138)
    $(36,425)


















66.

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