The six large energy suppliers are complex businesses. They generate electricity and buy gas to supply energy to homes and businesses, as well as trade between different parts of their businesses, both in Great Britain and abroad. Since 2009 we’ve required the large energy suppliers to produce an annual Consolidated Segmental Statements (CSS) to show the costs, revenues and profits for the different segments of their generation and supply businesses. We’re leading the way in making this information easily accessible.
We require the large suppliers to have their CSS independently audited. This is so consumers can have confidence that information on reported profits is accurate and robust. The large suppliers must publish their CSS no later than four months after the end of their financial year.
Following our referral in 2014, the Competition and Markets Authority (CMA) launched a full investigation of the energy market. On 24 June 2016 the CMA issued its final report. It has made a number of recommendations relating to financial reporting requirements – including adding a requirement for the energy companies to provide information on their balance sheets. Following these recommendations, we will be engaging with stakeholders about potential changes to the reporting requirements.
How much profit did suppliers make in 2018?
Total domestic supply profits aggregated across the six firms, measured as earnings before interest and tax (EBIT), decreased by 35%, compared to the 10% reduction between 2016 and 2017.Half of the six large suppliers, British Gas, E.ON and SSE, showed a year-on-year decrease in profit margins in domestic supply. In non-domestic supply half of the six large suppliers, E.ON, nPower and SSE showed a year-on-year decrease in profit margins.
Select from the charts below to see interactive summaries of some of the data provided by the companies in their statements. You can refine and expand chart views as well as download data and graphics based on your selections.
Adjustments
To ensure consistency with our guidelines on the treatment of exceptional items, we have adjusted published CSS figures in our summary analysis. The adjustments we have made mostly relate to the generation segment whereas the overall level of materiality in the retail segment remains low (below 3%). For ‘as reported’ figures please see the large suppliers’ individual published statements. Our adjustments are:
Centrica 2013
- Reduced ‘Indirect costs’ by £11 million for ‘Electricity Generation – Renewable’ in respect of net losses on the sale and impairment of assets.
- Reduced ‘Indirect costs’ by £10 million for ‘Gas Supply – Domestic’ in respect of impairment losses.
- Reduced ‘Indirect costs’ by £8 million for ‘Electricity Supply – Domestic’ in respect of impairment losses.
Centrica 2014
- Reduced ‘Other revenue’ by £16m and reduced ‘Indirect costs’ by £32.6 million for ‘Electricity Generation – Renewable’ in respect of the write off of investments and the profit on the sale of assets.
- Increased ‘Indirect costs’ by £20.8 million for ‘Electricity Generation – Nuclear’ in respect of profit made on revaluation of contingent valuation rights.
- Reduced ‘Indirect costs’ by £1.4 million for ‘Gas Supply – Domestic’ in respect of impairment losses.
- Reduced ‘Indirect costs’ by £1.0 million for ‘Electricity Supply – Domestic’ in respect of impairment losses.
- Increased ‘Depreciation and Amortisation’ by £58.0 million for ‘Generation – Nuclear’ in respect of depreciation of fair value uplifts relating to the strategic investment in Lake Acquisitions Limited. This was originally excluded from 2014 but has been added back to make it comparable with the 2015 figures which now include depreciation of these assets.
Centrica 2015
- Increased ‘Indirect costs’ by £19.6 million for ‘Generation – Nuclear’ to exclude profit from the revaluation of contingent valuation rights.
- Reduced ‘Indirect costs’ by £4.0 million for ‘Generation – Nuclear’ in respect of impairment losses.
- Reduced ‘Indirect costs’ by £3.3 million for ‘Generation – Nuclear’ in respect of impairment losses.
Centrica 2016
- Increased ‘Indirect costs’ by £20.9 million for ‘Generation – Nuclear’ to exclude profit from the revaluation of contingent valuation rights.
- Increased ‘Indirect costs’ by £1.8 million for ‘Generation – Thermal’ in respect of reversing impairment losses.
- Increased ‘Indirect costs’ by £6.4 million for ‘Generation – Thermal’ in respect of reversing profit on disposal.
- Increased ‘Indirect costs’ by £0.5 million for ‘Electricity supply – non-domestic” in respect of fines for delays smart meter roll-outs, and by £6.3 in respect of fines for billing failures.
- Increased ‘Indirect costs’ by £3.2 million for ‘Electricity supply – domestic” in respect of fines for billing failures.
Centrica 2017
- Increased ‘Indirect costs’ by £17 million for ‘Generation – Nuclear’ to exclude profit from the revaluation of contingent valuation rights.
- Decreased ‘Indirect costs’ by £3.9 million for ‘Generation – Nuclear’ in respect of impairment losses.
Centrica 2018
- Increased ‘Indirect costs’ by £9.7 million for ‘Generation – Nuclear’ to exclude profit from the revaluation of contingent valuation rights.
E.ON 2013
- Reduced ‘Depreciation and amortisation’ by £122 million for ‘Electricity Generation’ in respect of impairment write offs on the Ratcliffe power station.
- Increased ‘Indirect costs’ by £15 million for ‘Electricity Generation’ in respect of a gain on the disposal on the London Array onshore sub-station.
E.ON 2014
- Reduced ‘Depreciation and amortisation’ by £1,121million for ‘Generation – Conventional’ in respect of impairment write-offs on the generation portfolio.
- Reduced ‘Indirect costs’ by £20.9 million for ‘Generation – Conventional’ in respect of restructuring costs.
- Reduced ‘indirect costs’ by £6.7 million for ‘Gas Supply – Domestic’ in respect of restructuring costs.
- Reduced ‘indirect costs’ by £0.3 million for ‘Gas Supply – Non-domestic’ in respect of restructuring costs.
- Reduced ‘indirect costs’ by £10.1 million for ‘Electricity Supply – Domestic’ in respect of restructuring costs.
- Reduced ‘indirect costs’ by £1.1 million for ‘Electricity Supply – Non-domestic’ in respect of restructuring costs.
E.ON 2015
- Reduced ‘Indirect costs’ by £15.6 million for ‘Generation – Conventional’ in respect of restructuring costs.
- Increased ‘Depreciation and Amortisation’ by £56.0 million for ‘Generation – Conventional’ in respect reversal of impairment charges.
- Reduced ‘Indirect costs’ by £2.5 million for ‘Gas Supply – Domestic’ in respect of restructuring costs.
- Reduced ‘Indirect costs’ by £0.3 million for ‘Gas Supply – Non-domestic’ in respect of restructuring costs.
- Reduced ‘indirect costs’ by £1.7 million for ‘Electricity Supply – Domestic’ in respect of restructuring costs.
- Reduced ‘indirect costs’ by £0.1 million for ‘Electricity Supply – Non-domestic’ in respect of restructuring costs.
E.ON 2016
- Reduced ‘Indirect costs’ by £10.4 million for ‘Generation – Conventional’ in respect of restructuring costs.
- Reduced ‘Depreciation and Amortisation’ by £334.6 million for ‘Generation – Conventional’ in respect of impairment charges.
- Reduced ‘indirect costs’ by £5.2 million for ‘Aggregate Supply’ in respect of restructuring costs. Of these costs £2.896 million relates to ‘Electricity supply – domestic’, £1.908 million relates to ‘Gas supply – domestic’, £0.311m relates to ‘Electricity supply – non-domestic’ and £0.084 relates to ‘Gas supply – non-domestic’.
E.ON 2017
- Reduced ‘Depreciation and Amortisation’ by £21.5 million for ‘Generation – Renewable’ in respect of impairment charges.
E.ON 2018
- Reduced ‘Depreciation and Amortisation’ by £43.1 million for ‘Generation – Renewable’ in respect of impairment charges.
- Reduced ‘Depreciation and Amortisation’ by £1.4 million for ‘Aggregate Supply’ in respect of impairment charges. Of these charges £0.782 million relates to ‘Electricity supply – domestic’, £0.520 million relates to ‘Gas supply – domestic’, £0.076m relates to ‘Electricity supply – non-domestic’ and £0.020m relates to ‘Gas supply – non-domestic’
- Reduced ‘Indirect costs’ by £28.4 million for ‘Aggregate Supply’ in respect of restructuring costs. Of these charges £15.879 million relates to ‘Electricity supply – domestic’, £10.566 million relates to ‘Gas supply – domestic’, £1.543 million relates to ‘Electricity supply – non-domestic’ and £0.410 million relates to ‘Gas supply – non-domestic’
EDF 2013
- Reduced all figures for Nuclear by 20% to represent the 80% share relating to EDF.
EDF 2014
- Reduced all figures for Nuclear by 20% to represent the 80% share relating to EDF.
EDF 2015
- Reduced all figures for Nuclear by 20% to represent the 80% share relating to EDF.
EDF 2016
- Reduced all figures for Nuclear by 20% to represent the 80% share relating to EDF.
EDF 2017
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Reduced all figures for Nuclear by 20% to represent the 80% share relating to EDF.
EDF 2018
- Reduced all figures for Nuclear by 20% to represent the 80% share relating to EDF.