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.
Newcastle winger is in Argentina having chemotherapy
Returning to the stage after 20 years makes actress feel 'nauseous'
Man's attempt to avoid being impounded heavily criticised
- 1 Scottish independence: Ireland since 1919 is a lesson for Scotland in what a Yes vote means
- 2 A bottle of wine a day is not bad for you and abstaining is worse than drinking, scientist claims
- 3 Grandmas keep accidentally tagging themselves as Grandmaster Flash on Facebook
- 4 Daniele Watts: Django Unchained actress detained by Los Angeles police after being mistaken for a prostitute
- 5 Kanye West halts concert after two fans don't stand up - doesn't realise one is in wheelchair and the other disabled
Islamic State: Pope is 'being targeted by Isis', Iraqi ambassador to the Holy See warns
Jennifer Lawrence and Kate Upton nude pictures exhibition cancelled after artist concedes photos were 'stolen property'
Scottish independence referendum: A nation divided against itself
John Travolta addresses former pilot's gay romance allegations publicly for the first time: 'That was the lowest I'd ever felt'
Richard III: Two years after his body was found scientists discover how he died
Daniele Watts: Django Unchained actress detained by Los Angeles police after being mistaken for a prostitute
The political class is doing what Hitler couldn’t – destroying Britain
Scottish independence: Nationalist leader Jim Sillars threatens pro-union companies with 'day of reckoning' after independence
Scottish independence: Yes campaign feels the heat as Alex Salmond's NHS claims come under furious attack
Portuguese academic says British are 'filthy, violent and drunk'
£23m Birmingham cycle scheme is attacked by Tory councillor for not catering to the elderly
iJobs Money & Business
£20000 - £25000 per annum + OTE £35,000 first year: SThree: The SThree group i...
£20 - 24k (Uncapped Commission - £35k Year 1 OTE): Guru Careers: We are seekin...
£20 - 24k + Benefits: Guru Careers: This is a great opportunity for an enthusi...
£280 - £320 per day: Ashdown Group: The Ashdown Group have been engaged by a l...