One of Britain’s biggest energy suppliers could be wound down after failing to stem heavy losses, its owner has said. Germany’s Innogy said it was considering all options for Npower, which supplies gas and electricity to about 2.5 million UK households, after the collapse of its proposed merger with SSE last year. Bernhard Guenther, Innogy’s chief financial officer, said one such option was “selling the customer book and winding down the operations of the business”, which employs about 6,000 people in the UK. Such a move would cost Innogy hundreds of millions of pounds. Innogy was also open to offers to buy all of Npower, he said, or could still transfer it to rival Eon as part of a wider deal, which had been its expected fate. Npower is the smallest of Britain’s Big Six energy suppliers and has been loss-making for the past four years despite restructuring efforts and heavy job cuts. Losses deepened to €72 million in 2018 from €63 million a year earlier, Innogy said yesterday, as the supplier lost almost 660,000 customer accounts.
Times 14th March 2019 read more »
A pair of German-owned Big Six energy suppliers have plunged to a loss as the cap on standard energy bills takes it toll on supplier profits. The owners of Npower and E.ON UK both revealed losses for their British supply arms, which also face unprecedented competition from a growing number of nimble new entrants. Innogy said it has been forced to cut its dividend after taking a €1.5bn (£1.29bn) writedown on Npower, which lost 650,000 customers last year. In a seperate set of financial results, E.ON UK plunged to a loss of €1m for 2018, down from a €108m profit the year before, due to “persistently challenging market conditions”. Innogy warned investors that its UK supply business would continue to drag on profits in the year ahead after failing to offload Npower in a spin-off deal with SSE in 2018.
Telegraph 13th March 2019 read more »