E.ON UK supply activities: Interim III (January-September) 2015 Financial Update

By AndrewBarrow

Q315 Supply
  • Turnover and profit fall due to competitive market
    environment particularly in B2B sector

  • Investment increases due in
    part to a continued focus on smart meter installations

E.ON
has today (WED) announced details of its interim financial performance for
January to September 2015.

E.ON
has reported a £300 million fall in turnover from January to September, due to
a continuing competitive market environment in the business to business sector
and the decrease in its standard gas prices in January. However, profit has
remained relatively stable, decreasing by £2 million compared to the same
period last year, largely due to reduced spend from the successful delivery of
energy efficiency obligations ahead of schedule.

E.ON
UK Chief Executive Tony Cocker
said: “Increasing competition within
the energy market means we’re working even harder to provide the services that
our customers want, as well as ensuring our business runs as efficiently and
sustainably as possible.

“As is always the case, our focus
has remained on helping our customers manage their energy use and bills. We
demonstrated in January
that we
fundamentally believe in doing the right thing for our customers and cut the
price of our standard gas tariffs.
More recently, we offered, for a
limited period, a collective switch tariff which was one of the cheapest energy
deals on the market, in conjunction with uSwitch[1].

“Providing our customers with the
tools to help them use and spend no more than they need has also remained a key
priority for us. Our Saving Energy Toolkit, which allows our customers to
compare their energy use to that of similar homes, has been viewed by more than
a million customers to date, and by more than 380,000 so far this year. We
continually encourage customers to use our Best Deal For You service to help
find our best deal in just a few minutes – online or by speaking to one of our
advisors.

“Investment
in our supply business has increased by £2 million, with £17 million being
spent on our smart metering programme from January to September. We believe
that smart meters will be
transformational for the UK energy industry
and will help solve some of the frustrations energy customers have today.

“We’ve been installing smart
meters for over four years now and so far we’ve fitted more than half a million
in our customers’ homes and businesses. A
s well
as setting up a Smart Metering Centre of Excellence in Nottingham with
specially trained advisors dedicated to helping customers with smart meters,
we’ve
continued to invest in our IT systems and processes to help ensure we
have the capabilities we need to ensure an efficient mass rollout.”

Generation, Upstream and other
activities in the UK: Interim III (January-September) 2015 Financial Update

  • Renewable assets in the UK
    contributed £182 million to overall profit

  • Significant investment continues but overall figure has
    fallen due to the completion of Humber Gateway Offshore Wind Farm

Q315Gen

Commenting on the results across E.ON’s other
activities in the UK, Tony Cocker said
: “Our
renewable assets in the UK contributed £182 million to overall profit from
January to September. We’ve continued to support the transition to low carbon
energy generation and currently have around
1369MW of installed capacity in the UK.

“In
September our Humber Gateway Offshore Wind Farm was officially opened by the
Minister of State for Energy and Climate Change, Andrea Leadsom MP. This
opening marked a significant achievement for E.ON as Humber Gateway became our
fifth operational offshore wind farm in the UK. At a local level, we’ve created
47 full-time roles based at the wind farm’s Operations and Maintenance site, up
to 10 apprenticeship roles over the next two years, and we’ll continue to
support local communities close to the wind farm through our £2 million
Community Benefit Fund.

“Despite a decrease in investment
compared to last year, largely due to the completion of Humber Gateway, we’re
continuing to invest substantially in our generation and renewable portfolios.
Between January and September this year we spent £206 million on renewable
assets and we’ve commenced w
ork on the
£1.3 billion Rampion Offshore Wind Farm which will be situated 13km off the
Sussex coast.

“We’ll
continue to diversify our investment in new and existing plant as we firmly
believe that it’s important to have a broad range of generation assets as we
move to lower carbon technologies. Our efforts are helping the UK to maintain
the necessary generation mix so that the country can have secure energy,
affordable energy and sustainable energy in the long term.”

Ends

Notes to Editors:

1. The
national average price was
£803 per year based on Ofgem average
consumption for dual fuel with payment by fixed monthly Direct Debit. The
tariff was available through uSwitch between 30 September and 3 November 2015

For more information contact:

Roxanne Postle: 02476 195 785 / roxanne.postle@eon-uk.com

Scott
Somerville: 02476 183 438 /
scott.somerville@eon-uk.com

The information (including any
forecasts or projections) contained in this press release (the
“Information”) reflects the views and opinions of E.ON on the date of
this press release. The Information is intended as a guide only and
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E.ON makes no warranties,
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E.ON accepts no liability whatsoever for any
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release is the property of E.ON and you may not copy, modify, publish, repost
or distribute it. © E.ON 2015

Source:: E.ON UK supply activities: Interim III (January-September) 2015 Financial Update