E.ON UK Q3 Supply Activities: Sales up significantly but supply profit falls when compared with H1 level (EBITDA Q3 2013: £236m / H1 2013: £273m)

By AndrewBarrow

E.ON UK has today (WED) announced details of its financial performance for the first nine months of 2013. E.ON operates the different parts of its activities separately in the UK, and they are individually reported below.

UK Supply Activities (i.e. Residential, SME and Corporate Supply)

E.ON UK Chief Executive, Tony Cocker said: "Our turnover has increased significantly compared to last year, and we have also seen a very small increase in what we have earned compared with the same period. It is also notable that we have been running our supply business at a loss of around £37m¹ for the last three months.

"The costs we control, such as running our contact centres, have fallen but the costs we don't control such as networks and government schemes have risen and are set to continue into next year. According to Ofgem's recently released figures² we have already delivered ahead of the industry towards our ECO targets and have done so as efficiently and as cost effectively as possible. However it is also clear that we are not just being asked to do more but also to complete more complex home improvements.

"Whilst we will not comment on speculation, it is fair to say that we are being put in a position where it is increasingly likely that we will need to pass on some of these increases in costs to our customers. This is always a last resort and, as was the case last year, we are holding back any increase for our customers for longer than any of the other large energy suppliers. We will also seek to minimise any increase whilst making sure we maintain a sustainable supply business in the UK. That is right for our colleagues and right for our customers."

E.ON UK Q3 Generation, Upstream and other activities in the UK:
Profits down by 47% but investment remains almost double amount earned

Generation, Upstream and other activities operating in the UK:

Commenting on the results seen across E.ON's other activities in the UK, Tony Cocker said: "The lower EBITDA for E.ON's other activities in the UK for the year so far is attributable to a number of factors including the closure of Kingsnorth power station under the LCPD and the fact that gas power stations remain barely profitable.

"This year we have seen increased costs through government policies such as the Carbon Price Floor which is simply a tax that artificially inflates the end price for consumers, provides revenue for the Exchequer and acts as a subsidy to operators of existing nuclear plants. We believe it should be scrapped. However, if it is not scrapped, the money it raises should be used for energy efficiency. This is why we support the Energy Bill Revolution, which is calling for the Carbon Price Floor revenues to be reinvested to improve the energy efficiency in UK homes."

E.ON's investment levels in the UK continue to outstrip profit levels significantly. Capacity will continue to be built through projects such as the state-of-the-art biomass power station, Blackburn Meadows, Humber Gateway offshore wind farm and by securing energy supplies for the future by exploring the North Sea. Most notably, in the last quarter E.ON E&P UK Ltd, along with its partner Dana Petroleum, gave details of a significant gas discovery in the Tolmount field.

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Notes to editors:

1 = H1 2013, data published on 13^th August 2013. http://pressreleases.eon-uk.com/blogs/eonukpressreleases/archive/2013/08/13/1959.aspx

2 = https://www.ofgem.gov.uk/ofgem-publications/84352/ecocomplianceupdate-october2013quarterlyannexv1.pdf

For more information contact:

Scott Somerville (02476 183 438 or 07540 817 936)
Victoria Blake (02476 181 304 or 07738 143 903)
Roxanne Postle (02476 195 785 or 07815 494 468)

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‘E.ON Energy Action Fund' launched to fuel projects

By NaomiTroy As part of its commitment to helping communities better manage their energy consumption, energy company E.ON is launching a second round of funding to support worthwhile causes and is calling on members of the public to submit nominations.

Local community centres which need to improve their energy efficiency and schools or charities looking to add a spark to the area through energy education, can all apply for funding.

Applications for the E.ON Energy Action Fund can be submitted for a range of energy related improvements and activities, from appliances and insulation to educational events. Priority will be given to projects focused on reducing energy use and renewable energy.

Successful projects will receive anything from £50 up to £2,000, from E.ON to power their plans for a more efficient future.

Amy Cross, at E.ON, said: "This is a great opportunity for local organisations to take charge of their energy usage and it is our way of showing our support for local communities. E.ON's first Energy Action Fund, which ran earlier this year, was a great success and we look forward to supporting more energy related projects, which will help save money and reduce energy use across the community.

"We're keen to help as many people as possible across the area but funding is limited so applications should be made early."

The fund is open for applications from now until Friday 6th December. Interested parties should visit www.eonenergy.com/energyactionfund to apply and for terms and conditions.

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Notes to editors:

• E.ON is one of the UK's leading power and gas companies - generating electricity, retailing power and gas, developing gas storage and undertaking gas and oil exploration and production. It is part of the E.ON group, one of the world's largest investor-owned power and gas companies. E.ON employs around 12,000 people in the UK and more than 72,000 worldwide;


• In the UK, E.ON supplies power and gas to around five million domestic, small and medium-sized enterprise and industrial customers. E.ON also offers innovative energy services and technologies tailored to meet its customers' needs, and is helping customers become energy efficient by encouraging them to insulate their homes, moderate their energy usage and even generate their own power;


• E.ON has been voted Britain's best energy supplier for the second year running in the uSwitch.com Customer Satisfaction Awards. The independent report and awards are published annually and are based on a YouGov poll of over 5,000 energy customers;

For more information contact:

Naomi Troy at E.ON on 02476 180 523 or naomi.troy@eonenergy.com