Introduction
There are a wide range of contributions to utility financial performance - the type and location of customers as well as the mix of meters and tariffs. The impact of these factors on the overall performance of each residential supplier are detailed in this report to allow both analysis of past financial performance and forecasts of likely future behaviour under different market conditions.
Scope of this report
- Data on the costs of 6 UK utilities - Centrica, Powergen, SSE, ScottishPower, npower and EDF Energy
- Financial analysis of the origins of their profitability - cost-to-serve, network charges, S&M spend, renewable compliance as well as wholesale costs
- Knowledge about the portfolio of fuels and accounts held by suppliers and how this translated into return
- History of price rises and its relationship to changes in account numbers held by suppliers
Research and analysis highlights
Tier 1 customers were the most profitable for suppliers, regardless of fuel, giving suppliers who had high proportions of them the greatest profitability
The suppliers that have stayed with their ex-monopoly fuel to the greatest extent achieved the greatest profitability
A rising gas wholesale market forced short utilities to make losses in gas to protect valuable Tier 1 electricity accounts
Key reasons to read this report
- Identify which suppliers make a margin and where they make it
- Plan future marketing drives and scope their likely affect on profitability
- Understand the strengths and weaknesses of competitor portfolios and strategy
There are a wide range of contributions to utility financial performance - the type and location of customers as well as the mix of meters and tariffs.