Generation and Supply Profit Figures 2011

Amidst all the furore over retail prices over the past few weeks, a significant set of information about the Big-6 energy supply companies has become available which seems to have been overlooked by the media and industry commentators.

 Last week, each of the Big-6 was required, by Ofgem, to publish ‘Consolidated Segmental Reports’ on their UK generation and energy supply operations in the year ending March 2011. This reporting has been happening for a couple of years but, for first time last week, the Reports were published in a consistent fashion – which is useful for those of us who want to compare and contrast.

*In calculating profit margin, I used the stated earnings before interest, tax, depreciation and amortisation (EBITDA) so as to eliminate differences in tax allowances and non-cash accounting procedures between individual companies.

A few quick observations -

The average profit margin on selling electricity to domestic customers is very low - average 1%

The average profity margin on selling electricity to businesses is only 4%

The average profit margin on generating electricity is massive - 38%

There is a significant variation in the 'buying' cost of energy between suppliers (5.78p Edf vs 7.82p Scottish Power) yet the average prices sold to customers has much less variation.

I believe further investigation by the government and OFGEM into the workings of the electricity market is necessary.

 

 

Fixed Tariffs Ending? -Get a New One!

October 25, 2012

Switch to a Fixed Rate Tariff Now

ENERGYLINX: As energy suppliers continue to announce the implementation of looming price increases, customers must remain alert regarding how they may be affected.

Within the next several weeks, 3 of the nation's largest suppliers - all of which have already announced price increases - will remove 5 fixed tariffs from the market. These tariffs are as follows:

Price Promise October 2012 from British Gas

Price Promise October 2012
Distribution Area	British Gas	British Gas	Impact on 31/10/2012		Termination Fees
	Price Promise October 2012	Clear and Simple	£	%	Electric	Gas	Date
Eastern Electricity	£1,043.69	£1,184.28	£140.59	13.47%	£50.00	£50.00	31/10/2012
East Midlands Electricity	£1,047.13	£1,168.34	£121.21	11.58%	£50.00	£50.00	31/10/2012
London Electricity	£1,069.03	£1,198.17	£129.14	12.08%	£50.00	£50.00	31/10/2012
Manweb	£1,061.07	£1,211.51	£150.44	14.18%	£50.00	£50.00	31/10/2012
Midlands Electricity	£1,043.84	£1,210.92	£167.08	16.01%	£50.00	£50.00	31/10/2012
Northern Electric	£1,046.78	£1,180.53	£133.75	12.78%	£50.00	£50.00	31/10/2012
Norweb	£1,031.08	£1,183.31	£152.23	14.76%	£50.00	£50.00	31/10/2012
Scottish Hydro	£1,060.61	£1,187.15	£126.54	11.93%	£50.00	£50.00	31/10/2012
Scottish Power	£1,055.34	£1,175.61	£120.27	11.40%	£50.00	£50.00	31/10/2012
Seeboard	£1,058.04	£1,203.68	£145.64	13.77%	£50.00	£50.00	31/10/2012
Southern Electric	£1,072.15	£1,205.59	£133.44	12.45%	£50.00	£50.00	31/10/2012
SWALEC	£1,074.09	£1,201.98	£127.89	11.91%	£50.00	£50.00	31/10/2012
SWEB	£1,069.46	£1,220.90	£151.44	14.16%	£50.00	£50.00	31/10/2012
Yorkshire Electricity	£1,008.43	£1,170.14	£161.71	16.04%	£50.00	£50.00	31/10/2012

Online Saver 4 from British Gas

Online Saver 4
Distribution Area	British Gas	British Gas	Impact on 31/10/2012		Termination Fees
	Online Saver 4	Clear and Simple	£	%	Electric	Gas	Date
Eastern Electricity	£1,133.80	£1,184.28	£50.48	4.45%
East Midlands Electricity	£1,118.46	£1,168.34	£49.88	4.46%
London Electricity	£1,146.91	£1,198.17	£51.26	4.47%
Manweb	£1,159.92	£1,211.51	£51.59	4.45%
Midlands Electricity	£1,159.21	£1,210.92	£51.71	4.46%
Northern Electric	£1,130.05	£1,180.53	£50.48	4.47%
Norweb	£1,132.77	£1,183.31	£50.54	4.46%
Scottish Hydro	£1,136.41	£1,187.15	£50.74	4.46%
Scottish Power	£1,125.31	£1,175.61	£50.30	4.47%
Seeboard	£1,152.33	£1,203.68	£51.35	4.46%
Southern Electric	£1,154.12	£1,205.59	£51.47	4.46%
SWALEC	£1,150.62	£1,201.98	£51.36	4.46%
SWEB	£1,168.78	£1,220.90	£52.12	4.46%
Yorkshire Electricity	£1,119.98	£1,170.14	£50.16	4.48%

Discount Saver 2012 from British Gas

DiscountSaver 2012
Distribution Area	British Gas	British Gas	Impact on 31/10/2012		Termination Fees
	DiscountSaver 2012	Clear and Simple	£	%	Electric	Gas	Date
Eastern Electricity	£1,133.62	£1,184.28	£50.66	4.47%	£30.00	£30.00	31/10/2012
East Midlands Electricity	£1,118.37	£1,168.34	£49.97	4.47%	£30.00	£30.00	31/10/2012
London Electricity	£1,146.92	£1,198.17	£51.25	4.47%	£30.00	£30.00	31/10/2012
Manweb	£1,159.76	£1,211.51	£51.75	4.46%	£30.00	£30.00	31/10/2012
Midlands Electricity	£1,159.03	£1,210.92	£51.89	4.48%	£30.00	£30.00	31/10/2012
Northern Electric	£1,129.85	£1,180.53	£50.68	4.49%	£30.00	£30.00	31/10/2012
Norweb	£1,132.81	£1,183.31	£50.50	4.46%	£30.00	£30.00	31/10/2012
Scottish Hydro	£1,136.24	£1,187.15	£50.91	4.48%	£30.00	£30.00	31/10/2012
Scottish Power	£1,125.10	£1,175.61	£50.51	4.49%	£30.00	£30.00	31/10/2012
Seeboard	£1,152.27	£1,203.68	£51.41	4.46%	£30.00	£30.00	31/10/2012
Southern Electric	£1,154.06	£1,205.59	£51.53	4.47%	£30.00	£30.00	31/10/2012
SWALEC	£1,150.58	£1,201.98	£51.40	4.47%	£30.00	£30.00	31/10/2012
SWEB	£1,168.78	£1,220.90	£52.12	4.46%	£30.00	£30.00	31/10/2012
Yorkshire Electricity	£1,120.01	£1,170.14	£50.13	4.48%	£30.00	£30.00	31/10/2012

Sign Online 23 from nPower

Online Fixed Saver November 2012
Distribution Area	Scottish Power	Scottish Power	Impact on 31/10/2012		Termination Fees
	Online Fixed Saver November 2012	Standard	£	%	Electric	Gas	Date
Eastern Electricity	£1,113.74	£1,152.85	£39.11	3.51%	£30.64	£20.42	31/10/2012
East Midlands Electricity	£1,110.68	£1,150.03	£39.35	3.54%	£30.64	£20.42	31/10/2012
London Electricity	£1,135.90	£1,176.33	£40.43	3.56%	£30.64	£20.42	31/10/2012
Manweb	£1,164.07	£1,205.87	£41.80	3.59%	£30.64	£20.42	31/10/2012
Midlands Electricity	£1,117.44	£1,157.27	£39.83	3.56%	£30.64	£20.42	31/10/2012
Northern Electric	£1,115.07	£1,154.76	£39.69	3.56%	£30.64	£20.42	31/10/2012
Norweb	£1,119.43	£1,159.53	£40.10	3.58%	£30.64	£20.42	31/10/2012
Scottish Hydro	£1,151.62	£1,193.23	£41.61	3.61%	£30.64	£20.42	31/10/2012
Scottish Power	£1,123.52	£1,163.96	£40.44	3.60%	£30.64	£20.42	31/10/2012
Seeboard	£1,118.59	£1,158.49	£39.90	3.57%	£30.64	£20.42	31/10/2012
Southern Electric	£1,132.13	£1,172.36	£40.23	3.55%	£30.64	£20.42	31/10/2012
SWALEC	£1,152.73	£1,194.06	£41.33	3.59%	£30.64	£20.42	31/10/2012
SWEB	£1,152.03	£1,193.67	£41.64	3.61%	£30.64	£20.42	31/10/2012
Yorkshire Electricity	£1,100.67	£1,140.42	£39.75	3.61%	£30.64	£20.42	31/10/2012

Online Fixed Saver November 2012 from ScottishPower

Sign Online 23
Distribution Area	nPower	nPower	Impact on 06/11/2012		Termination Fees
	Sign Online 23	Standard	£	%	Electric	Gas	Date
Eastern Electricity	£955.05	£1,143.51	£188.46	19.73%	£20.00	£20.00	06/11/2012
East Midlands Electricity	£967.76	£1,130.93	£163.17	16.86%	£20.00	£20.00	06/11/2012
London Electricity	£980.55	£1,150.53	£169.98	17.34%	£20.00	£20.00	06/11/2012
Manweb	£989.10	£1,163.57	£174.47	17.64%	£20.00	£20.00	06/11/2012
Midlands Electricity	£983.93	£1,168.70	£184.77	18.78%	£20.00	£20.00	06/11/2012
Northern Electric	£975.66	£1,144.05	£168.39	17.26%	£20.00	£20.00	06/11/2012
Norweb	£971.19	£1,150.13	£178.94	18.42%	£20.00	£20.00	06/11/2012
Scottish Hydro	£990.83	£1,129.31	£138.48	13.98%	£20.00	£20.00	06/11/2012
Scottish Power	£964.45	£1,129.83	£165.38	17.15%	£20.00	£20.00	06/11/2012
Seeboard	£987.06	£1,138.87	£151.81	15.38%	£20.00	£20.00	06/11/2012
Southern Electric	£991.88	£1,153.72	£161.84	16.32%	£20.00	£20.00	06/11/2012
SWALEC	£1,023.07	£1,164.11	£141.04	13.79%	£20.00	£20.00	06/11/2012
SWEB	£1,009.05	£1,174.56	£165.51	16.40%	£20.00	£20.00	06/11/2012
Yorkshire Electricity	£965.60	£1,144.28	£178.68	18.50%	£20.00	£20.00	06/11/2012

The expiration of said tariffs will precede the price increases of suppliers by a window of only 2-3 weeks. nPower is set to increase bills by an average of 8.8% for gas and 9.1% for electricity, to take effect on 26 November 2012. Meanwhile, British Gas has warned customers to prepare for a 6% increase for both their gas and electricity bills as of 17 November 2012. ScottishPower will be implementing their price increase from 3 December.

Energylinx would strongly advise all customers who are currently participating in any of these expiring tariffs - the Price Promise October 2012, Online Saver 4 and Discount Saver 2012 from British Gas, the Sign Online 23 from nPower and Online Fixed Saver November 2012 from ScottishPower - to consider switching tariffs immediately in order to avoid being dumped onto ever-increasing standard tariff rates.