British Gas and E.ON report falling profits amid customer losses

Both British Gas and E.ON, two of the UK’s “Big Six” suppliers, have reported recent financial results that reflect falling profits, and industry changes in the UK domestic market.

British Gas and E.ON report falling profits amid customer losses

Both British Gas and E.ON, two of the UK’s “Big Six” suppliers, have reported recent financial results that reflect falling profits, and industry changes in the UK domestic market.

Both suppliers have been disrupted by the rise of challenger suppliers, and recent government changes, including the introduction of the price cap.

British Gas’ parent company Centrica reported a one-off £70m negative impact in the first quarter, and E.ON reported a €90m (approx. £78m) decline in earnings. In addition, British Gas has reported customer losses of 234,000.

Iain Conn, Centrica Group Chief Executive, said:

“…external factors have presented challenges for Centrica during the first four months of 2019, in the form of the default tariff cap, warm weather, and falling gas prices…However, we continue to focus on those things we can control and as a result we expect to achieve our 2019 cash flow and net debt targets.”

E.ON CFO Marc Spieker said:

“Aside from the special case of the United Kingdom, our core businesses delivered a solid performance.”

Victoria Arrington, Spokesperson for energyhelpline.com said:

“As switching picks up in popularity, the Big Six are losing customers across the board.

Small and mid-tier suppliers now control around 25 per cent of the market (up from 1 per cent only 7 years ago), which means that customers are clearly shifting. But it’s not all bad news – British Gas and E.ON have both boasted good customer service, and also have begun investing in new innovations such as smart home technologies. Hopefully these factors, along with energy deals, can be positive steps in ensuring they remain competitive in a changing and evolving marketplace.

However at the end of the day, if consumers feel their prices are too high, Big Six players will continue to lose customers. It’s clearly never been easier or quicker to switch and save. With dozens of deals out there, customers can seek out whichever deal best suits them - and their pocketbook.”

 

 

 

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