Household energy bills increased by 54% in April 2022 according to the Domestic Energy Price report. This was a record increase, and the worst part is that prices are likely to rise substantially again in October.
This ever-increasing rise in energy bills adds to the issue of rising costs of living. In addition, the 2021 Family spending in the UK report by ONS also showed that 18% of the UK household weekly expenditure goes to housing, fuel and power, which is the highest expense all households face.
This constant price increase led us to an interesting question – is this rise in costs affecting the energy companies supplying our energy too? UK Radiators used the list of licensed companies by Ofgem to gather all the Big 6 Energy companies that are licenced in the UK. We then got their official accounts from the UK’s companies house and calculated the total profit after tax for each of the years from 2016 to 2020.
To calculate the average household energy bill we used data published by Ofgem, the energy market regulator, showing that in September 2021 the average UK energy bill was £95 per month, or £1,138 a year.
Here is what we found:
The highest earning company was E.ON with 3.6 billion pounds in post-tax profit from 2016 to 2020.
The lowest earning Company SSE with 700 million pounds in post-tax profit from 2016 to 2020.
The Highest earning year was E.ON in 2019 where they earned over 2 billion British pounds in post-tax profit.
The lowest earning year was EDF in 2017 where they ended the year with a loss of over 500 million British pounds.
The total profit from all the companies was a combined 10.2 billion pounds in post-tax profit
Below is the breakdown of all the big 6 energy companies:
How Did The Big 6 Perform In The Last 5 Years?
E.ON’s Post Tax Profits (2016-2020)
E.ON made a total of £3.6 Billion in post-tax profit with their highest year being in 2019 when they made over 2 billion British pounds.
British Gas’ Post Tax Profits (2016-2020)
British Gas made a total of £1.6 Billion in post-tax profit with their highest year being in 2016 when they made just under 500 million British pounds.
EDF’s Post Tax Profits (2016-2020)
EDF made a total of £1.6 Billion in post-tax profit with their highest year being in 2016 when they made just under one billion British pounds.
Scottish Power’s Post Tax Profits (2016-2020)
Scottish Power made a total of £1.4 Billion in post-tax profit with their highest year being in 2019 when they made just under 800 million British pounds.
Npower’s Post Tax Profits (2016-2020)
Npower made a total of £1.3 Billion in post-tax profit with their highest year being in 2019 when they made over 1.6 billion British pounds.
SSE’s Post Tax Profits (2016-2020)
SSE made a total of £700 million in post-tax profit with their highest year being in 2018 when they made just over 200 million British pounds.
Find out more – https://ukradiators.com/advice-centre/do-energy-companies-suffer-too/
