Energy and Utility Management Consultants

Ofgem analyses Supplier profits, Centrica strikes new foreign deal

April 2013

 

EDF Energy has claimed that it is not going to hurry to agree the price that they will receive for energy generated by the proposed £14bn Hinkley Point nuclear project. If the government offer does not reach EDF’s valuation, they are prepared to walk away from the project. Should EDF follow British Gas and abandon the project, the chances of finding further investment may be slim, with EDF warning that no other companies are likely to be interested.

Ofgem have analysed the 2011 financial statements of the Big Six energy suppliers, showing the profits made by each in their generation and supply divisions. In 2011, average profits of 3.1% were seen on the supply side (down from 3.8% in 2010), and 24.4% was made on generation (up from 18.4% in 2010). On the supply side Centrica made the largest % profit, but surprisingly, EDF Energy posted a loss.

Following recent news that Centrica are to partner with US company Cheniere Energy, the company has now entered a joint venture with Qatar to buy £650m of assets from Canadian company, Suncor Energy.  This includes 1m acres of undeveloped land in the Western Canadian Sedimentary Basin under which are huge volumes of petroleum and natural gas reserves.

Remember to get in touch to find out how our thorough account management and reporting processes can benefit you. We regularly identify significant potential savings including, but not limited to;

 - improving heating controls through comparing to degree day data
 - changing tariff structures, to ensure they best suit requirements
 - reviewing available capacities to avoid excess costs or penalty charges
 - analysing half hourly demand data to identify irregular usage patterns
 - transferring meter operator contracts to preferential rates
 - ensuring any power factor charges are legitimately applied, and not based on industry standard estimates, and recommending action where applicable

 

 

 

 

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