Energy supplier Npower has announced a 34 per cent increase in annual profits for its UK business.
Profits increased to £313 million from £232 million in a year when it announced big price increases for both gas and electricity. It defended the level of profit saying it represents “just” £4.17 a month per customer account.
On the 1st October, Npower raised gas prices by 15.7 per cent and electricity by 7.2 per cent. It subsequently cut gas prices by five per cent from the 1st February 2012.
Npower supplies six million UK customers and is owned by German utility company RWE.
The company says profits increased due to efficiency improvements, higher cost savings and income from power generation assets.
Volker Beckers, RWE npower CEO, said: “In these difficult times, we recognise that many people are concerned about rising energy costs, which is why it’s essential we continue to make strong investments in much needed, new energy infrastructure as these will help to reduce the UK’s exposure to volatile energy prices, while also making a valuable contribution to economic growth.”
The company highlights its investment in securing affordable power for UK consumers in the future and says its total investment in the UK since 2009 (£3,419m) is now more than npower’s combined profits since 2006 (£2,045m).
It points to a recent £1 billion investment in a gas-fired power station in Pembroke which will be commissioned this year. It also opened a similar power station in Staythorpe last year.
The announcement comes a week after a new report was published by fuel poverty expert Professor Christine Liddell of the University of Ulster that suggests deaths from cold weather in the UK are three times higher than the government had previously estimated.
A recent survey by uSwitch revealed that 98 per cent of people in the UK believe gas and electricity bills should be exempt from VAT. It is currently charged at five per cent.
07/03/2012 - myfinances.co.uk
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