Four of the Big Six energy suppliers saw pre-tax profits in the black last year.
SSE, Scottish Power, E.ON, and Centrica all kept bottom lines in the positive during 2016.
EDF and npower both saw pre-tax domestic supply margins drop into the red.
Ofgem data shows that between 2009 and 2015, the average combined gas and electricity pre-tax domestic supply margin across the six large suppliers grew from around 1% to around 4%, with significant differences between the suppliers’ margins.
Between 2015 and 2016, profits earned by the six large suppliers continued to vary substantially and showed an increase in the average combined gas and electricity pre-tax domestic supply margin from 4.1% to 4.5%.
E.ON reported an increase in its domestic margins from 4.5% to 7.0%. SSE also showed a slight year-on-year increase from 6.2% to 6.9%.
Similarly, npower reported higher domestic margins year-on-year, despite making the biggest loss (-6.3%).
Centrica earned the highest domestic margins amongst the group (7.2%) despite reporting a slight decrease year-on-year.
EDF and ScottishPower also showed a similar decreasing trend.
Retail highlights August 2017
The Supplier Cost Index (dual fuel) was broadly flat between 1 May and 1 August 2017. This followed the 6% drop in the previous quarter. There was an increase in expected electricity costs offset by a reduction for gas, resulting in an increase of 0.9% for dual fuel.
The differential between the average price of the SVT offered by the six large suppliers and the cheapest tariff in the market reached a two-year low of around £230 in February 2017, but has shown an increasing trend since then and reached £300 in July, mainly as a result of the increase in the price of SVTs.
Between October 2016 and April 2017 the average proportion of customer accounts on SVT continued to fall, from 61% to 59%, for non-prepayment domestic customers.
Between 2015 and 2016, profits earned by the six large suppliers continued to vary substantially and showed an increase in the average combined gas and electricity pre-tax domestic supply margin from 4.1% to 4.5%.
Based on the information reported by the large suppliers in their annual Consolidated Segmental Statements, the average domestic dual fuel bill fell by 4% between 2015 and 2016 as a result of reductions to suppliers’ prices, which more than offset an increase in average consumption as a result of colder weather.
Electricity switching fell slightly between May and June 2017 to 380,000, which was the highest level in the month of June since 2011. Gas switching was also high, at 310,000, the highest level of gas switching in the month of June since 2009.
In Q1 2017 the proportion of satisfied and very satisfied customers stood at 69% for both gas and electricity, based on the responses to a new online consumer survey by GfK.
Wholesale highlights at July 2017
Following an increase at the end of 2016, wholesale energy prices fell and were less volatile in Q1 2017. See Wholesale Price Trends and Investment and Sustainability.
GB continues to receive its gas supplies from a diverse range of sources, including GB North Sea fields, Norway, LNG, interconnector flows and storage.
Coal’s share of the electricity generation mix in Q1 2017 remains low by historical standards. Gas’ share remained stable at 40%, while renewables contributed around 27% of the mix.
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