Responding to EDF Energy’s results today Audrey Gallacher, Director of Energy at Consumer Focus, said:
‘EDF Energy’s UK profits1 have risen despite lower energy use in the milder winter. This will leave many customers wondering whether energy prices can, and should, be cut further. SSE also revealed a similar picture earlier this month with a predicted profit rise despite falls in consumption.2
‘We need successful, profitable companies. But consumers need to know big profit margins are not being made needlessly at their expense. The issue is not how much money is made over one year, it’s whether the market is working as a whole, pricing is fair, and if suppliers are providing enough transparency.
‘We know many consumers don’t trust their supplier, and getting greater clarity over pricing and profits is key to rebuilding faith in this market. Ofgem must act on the recommendations of the firm which recently scrutinised the energy suppliers’ accounts – to make sure information is fully transparent, comparable, and includes profit and trading information from across the whole of their business.’
ENDS
Notes to editors:
- EDF reported UK EBITDA of €1,912 million in 2011 up from an adjusted figure of €1,790 million in 2010. Sales fell 8%. It said the most significant factors in the rise in profits were the increase in their UK nuclear output and the movement in wholesale prices.
- SSE profits were predicted to be up by 2%, despite a slump in gas consumption of over a quarter and a 50,000 fall in customer numbers.
- The average annual energy bill will be £1,258 when all of the price cuts announced recently have come into effect.
