Energy companies have a reputation for charging customers highly inflated prices for energy while generating huge profits for the business and their shareholders. But is this a myth or reality?
A recent Ofgem report stated that energy companies were making around £125 profit per customer. However, a snapshot of profits every few months doesn't provide a realistic picture of the average profits over a year of companies in the sector.
Earlier this year, the energy industry was making just £1.50 on every £100; and between 2004 and 2009 Ofgem’s own figures show that the energy industry was making a loss on the average customer.
These are not the figures associated with an industry that is profiteering or uncompetitive, and despite this challenging financial climate, RWE still managed to invest over £1 Billion into new, more efficient energy infrastructure for the UK in each of the last three years - that's £3 RWE has put back into UK energy for every £1 npower has received as profit over the same period.
Energy markets are likely to be tested over the coming years and considerable investment is needed to keep the UK's lights on. The pressure is on for us to provide affordable, sustainable and secure supplies - while continuing to meet our low carbon obligations. Around 25% of the UK's power stations will soon close and the resulting energy gap will have to be filled - and pretty quickly!
http://www.rwe.com/web/cms/en/294304/rwe-npower/about-us/our-businesses/new-power-stations/
www.decc.gov.uk/en/content/cms/what_we_do/uk_supply/uk_supply.aspx
