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Helping you make sense of the energy and water sectors

Market research & Insight

Issue 29b

November 2017 in brief Challenges facing the large suppliers The interim results published for five of the large suppliers show a common theme of static or falling profitability, with Scottish Power and npower noting customer loses and both EDF Energy and E.ON UK reporting lower non-domestic volume sales. Furthermore, npower explicitly stated that it was facing lower margins in new customer acquisition in its B2B segment. The trading update released by Centrica on 23 November noted considerable customer losses in its domestic business and less than expected profit in its business segments. This contributed to its share price falling 15% in one day. SSE was the only large supplier to report growth in its retail business with operating profit for this part of the business up £9.8mn compared to 2016. However, the supplier is likely to have challenging times ahead with the proposed creation of a “new independent energy supply company” with the merger of SSE’s household retail division with that of npower’s domestic and non-domestic retail businesses. Batteries and EVs taking charge November saw a number of electric vehicle (EV) and battery storage announcements from several suppliers, reflecting the growing interest from businesses and consumers in the emerging technologies. On the EV side, EDF Energy launched a new SME-focussed EV product, with a discount available for the first 1,000 customers that take up the offer. E.ON UK and Ecotricity announced a renewed focus on EV users, with both suppliers arguing that convenience will be ...

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