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Npower profits surge by 11%

Npower profits surge by 11%

Category: Gas and electricity

Updated: 15/08/2013
First Published: 15/08/2013

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Npower today revealed a 11% surge in UK gas revenues for the first half of this year.

The news comes just days after another of the "big six" energy suppliers, E.On, announced profit growth in the UK of almost 15% for the first six months of 2013.

Npower's German parent company, RWE, said UK gas supply revenues had reached £1.1 billion in the six months, only eight months after raising household prices by 8.6%.

However, it reported operating profits were 3% down on last year's figure, at £176 million, blaming the fall on new Government regulations that mean energy suppliers have had to simplify tariffs as well as pay for energy efficiency measures in customers' homes.

E.On, meanwhile, announced earlier this week that its operating profit increased to £273 million in the UK during the first half of this year – up 14.7% on last year's figure. It also increased its prices by an average 8.7% at the beginning of this year.

However, the firm, which is Germany's biggest energy supplier, said results for the group overall revealed operating profits fell 15% to £3.7 billion, which it blamed on subdued demand in Europe's struggling economies.

In a further blow to those consumers perhaps hoping for a respite from rising prices on the back of impressive UK profits, energy price comparison website energyhelpline estimates that fuel bills will rise by 5% in January due to increasing wholesale prices.

Director of energyhelpline, Mark Todd, has urged consumers worried about rising prices to consider switching now to a competitive fixed price tariff.

"Consumers need to be vigilant as there are good deals popping up on the web all the time. If they sign up to these during the summer they can save themselves a lot of money and misery when the winter sets in," he said.

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