Jump to content
House Price Crash Forum
Sign in to follow this  
interestrateripoff

Late Payers Put Squeeze On E.on’s Profitability

Recommended Posts

http://business.timesonline.co.uk/tol/busi...icle6823986.ece

One of Britain’s biggest energy suppliers is facing a mountain of bad debt as its industrial customers put off paying their electricity and gas bills to solve cashflow problems.

E.ON said that its bad debts in the UK were running at the level of “hundreds of millions of poundsâ€, a burden that the utility argues must be taken into account by Ofgem in its investigation into current retail energy pricing.

“We have not made a profit [in the UK retail market] since 2006. We will not make a profit this year,†an E.ON spokesman said. “We have a problem with industry paying their bills.â€

In August RWE, the Germany utility that owns npower, warned that its UK retail business was affected by payment problems. “Social obligation costs, as well as bad debt, reduced our earnings significantly,†the company said, indicating that npower’s results would be lower this year and affected by public policy. “[uK] governmental programmes in 2009 are expected to cost up to €100 million [£87 million] more than last year,†RWE said.

The recovery is well and truly under way. The more late payers we have the stronger the recovery.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   295 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.