The big six supplier has announced plans to sell its stake in a number of renewable projects including windfarms, and part of a biomass energy plant.
According to The Guardian, npower’s staff, as well as local councils, are going to be offered shares in green projects as the energy supplier looks to tackle its debts and growing uncertainty in the UK energy sector.
npower’s parent company, RWE, recently announced it would no longer be investing in the construction of the Atlantic Array. The latter was set to be one of the biggest windfarms on earth.
npower ‘still committed’ to green projects
Speaking on the recent announcement, Chief Operating Officer of RWE npower Renewables Paul Coffey said the company would still work toward delivering a number of renewable projects in the UK. He did, however, add that RWE’s strategy of investing large stakes in offshore windfarms was likely finished as the company would now focus on ‘value not volume’.
Coffey said further details would be revealed at an upcoming annual briefing on 4 March.
£40 increase needed to keep suppliers’ profitability intact
A new study by Barclays revealed that due to a fall in energy consumption and increasing distribution costs, energy companies are likely to see their profit margins fall. According to the report, a £40 increase in bill size would be needed to for energy companies to keep income levels in line with the past few years.
Despite this news, it is unlikely that price rises will take place in the run up to the General Election. In addition, all of the big six have said they will hold prices as they are, unless factors outside of their control, such as wholesale prices or distribution charge increases, until 2015.