Npower profits rise by 34% to £313m
Tuesday 06 March 2012
Big-six energy supplier Npower risked public anger today after it
unveiled a 34% leap in annual profits in a year in which it hiked its
average electricity and gas bills.
The company, which supplies more than six million customers in the UK, said profits were £313 million in 2011, compared to £232 million the previous year.
Npower, which is owned by German utility giant RWE, lifted average tariffs for gas by 15.7% and electricity by 7.2% last October - but has since lowered gas bills by 5%.
The company said the surge in profits was driven by improved income from its power generation assets, as well as higher cost savings, while it also invested nearly £1 billion in clean energy in the UK.
Volker Beckers, RWE Npower chief executive, said the company recognised that many people are "concerned" about rising energy costs and Npower would invest in new energy infrastructure to reduce the UK's exposure to volatile energy prices.
Npower, the fourth largest provider in the UK, blamed rising wholesale prices on the global market and a commitment to invest in future energy supplies when it hiked bills last year.
But the group said its 2011 profits amount to £4.17 a month per customer account and its bills remain below the current national average.
Furthermore, RWE's total investment in the UK since 2009 of £3.4 billion is now more than Npower's combined £2 billion profits since 2006.
The company recently invested £1 billion in a gas-fired power station in Pembroke due to be commissioned in 2012 and £650 million in a similar station in Staythorpe which became operational in 2011.
Parent company RWE reported an 18% drop in underlying earnings to 8.5 billion euros (£7.1 billion) as the cost of phasing out nuclear power in Germany and losses in its energy trading and wholesale gas business.
- 3 Russian girl takes her own life after parents find pornography on her computer
- 4 Ball pool for adults opens in London
- 5 Amal Clooney gives excellent response to fashion question at European Court of Human Rights
Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
Kim Kardashian on Bruce Jenner's 'story': 'We support him no matter what, and I think when the time is right, he'll talk'
Michelle Obama highlights harsh restrictions faced by Saudi women after meeting King Salman without wearing a headscarf
Russian girl takes her own life after parents find pornography on her computer
Ball pool for adults opens in London
9 reasons Greece's experiment with the radical left is doomed to failure
'We would evict Queen from Buckingham Palace and allocate her council house,' say Greens
Have we reached 'peak food'? Shortages loom as global production rates slow
Greece elections: Syriza and EU on collision course after election win for left-wing party
British Muslim school children suffering a backlash of abuse following Paris attacks
British grandmother Lindsay Sandiford faces execution by firing squad in Indonesia
iJobs Money & Business
£13000 per annum: Recruitment Genius: This Pension Specialist was established ...
£23000 - £26000 per annum + Benefits: Ashdown Group: Market Research Executive...
£25000 - £35000 per annum: Recruitment Genius: A Technical Report Writer is re...
Competitive salary & benefits!: MBDA UK Ltd: MBDA UK LTD Indirect Procurement...