npower’s 2013 financial statement revealed that revenue from UK customers fell by 5% to £134m and a lower demand for electricity saw its power stations make a £65m loss.
The German-owned energy supplier did, however, see its business supply branch increase income by 23% to £112m.
Political pressure unlikely to ease up
In its report, the company stated: “We expect competition in the retail business to become tougher in the UK as well. Together with a tighter regulatory environment, this will probably cause earnings recorded by RWE npower to decrease moderately.”
The statement also discussed the pressure being applied by politicians and the British press: “Politicians and the media complaining about a lack of competition and making the energy companies’ quest for profits responsible for rising energy costs can therefore expect the public’s widespread approval.”
Price rises and cuts
npower was the third of the big six to raise its gas and electricity prices during winter and blamed rising wholesale costs, distribution expenses and government levies, for increase.
The company subsequently reduced its prices by about £50, following cuts to green levies, however, customers will still find themselves paying more for energy than they would have before the cuts.
Average big six energy bills:
|January 2013||31st December 2013||March 2014|
Based on a medium user consuming 3,200 kWh of electricity and 13,500 kWh of gas on a standard dual fuel tariff, paying quarterly by cash and cheque, with bill sizes averaged across all regions. *£1 difference due to rounding.