The big six energy firms face further pressure over household bills after the industry regulator revealed that profits per customer climbed 77% last year to £53.
Ofgem released the data on the eve of a protest by anti-poverty campaigners against RWE npower, British Gas and other gas and electricity suppliers.
The figures show that the big six made £53 profit per customer in 2012, providing an average profit margin of 4.3%. This was up from £30 profit per customer in 2011 when the profit margin was 2.8%.
In 2009 – the first year Ofgem required this data to be published – three of the big six made losses on supplying energy to consumers, with the average profit per customer just £8.
The big six – British Gas, npower, SSE, Scottish Power, E.ON and EDF – have faced a chorus of condemnation, led by Labour leader Ed Miliband pledging a price freeze and former prime minister Sir John Major, who has called for a windfall tax on profits.
The criticism reached a new height after energy companies announced inflation-busting increases to the average customer bill for this winter.
The data released on Monday does not cover profits related to the latest series of price rises, which has re-opened the debate about whether the big six make "fair" profits.Ofgem said rising prices, rather than lower costs, were a factor in the profit increase.
"There is some evidence of rising profit margins. This rise has been due to a combination of higher prices and volumes rather than lower costs," said the regulator.
Ofgem said rising profits from consumer supply were partly were down to higher demand for gas during the exceptionally cold winter of 2012, but added that it was too early to say whether this upward trend would continue.
Between 2009 and 2012 the big six saw their revenues grow 50% faster than costs. In 2011, when the country experienced a milder winter, energy company revenues and the average customer bill both fell by around 5%.
Although energy companies have been making more money from supplying households, overall profits were down 3.4% in 2012 on the previous year, as margins on generating power were squeezed.
The power generation business of the big six yielded £2.1bn profits in 2012, compared to £2.6bn the previous year – as firms were hit by depreciation costs and declining profitability from their gas-fired power stations.
theguardian.com
Ofgem released the data on the eve of a protest by anti-poverty campaigners against RWE npower, British Gas and other gas and electricity suppliers.
The figures show that the big six made £53 profit per customer in 2012, providing an average profit margin of 4.3%. This was up from £30 profit per customer in 2011 when the profit margin was 2.8%.
In 2009 – the first year Ofgem required this data to be published – three of the big six made losses on supplying energy to consumers, with the average profit per customer just £8.
The big six – British Gas, npower, SSE, Scottish Power, E.ON and EDF – have faced a chorus of condemnation, led by Labour leader Ed Miliband pledging a price freeze and former prime minister Sir John Major, who has called for a windfall tax on profits.
The criticism reached a new height after energy companies announced inflation-busting increases to the average customer bill for this winter.
The data released on Monday does not cover profits related to the latest series of price rises, which has re-opened the debate about whether the big six make "fair" profits.Ofgem said rising prices, rather than lower costs, were a factor in the profit increase.
"There is some evidence of rising profit margins. This rise has been due to a combination of higher prices and volumes rather than lower costs," said the regulator.
Ofgem said rising profits from consumer supply were partly were down to higher demand for gas during the exceptionally cold winter of 2012, but added that it was too early to say whether this upward trend would continue.
Between 2009 and 2012 the big six saw their revenues grow 50% faster than costs. In 2011, when the country experienced a milder winter, energy company revenues and the average customer bill both fell by around 5%.
Although energy companies have been making more money from supplying households, overall profits were down 3.4% in 2012 on the previous year, as margins on generating power were squeezed.
The power generation business of the big six yielded £2.1bn profits in 2012, compared to £2.6bn the previous year – as firms were hit by depreciation costs and declining profitability from their gas-fired power stations.
theguardian.com
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