What caused E.On's biggest financial slump?

9 March 2016

eon energy bulb E.On has reported their biggest ever annual financial loss. They announced a £5.4 billion net loss for 2015, in the same week Npower reported that they'd been having a lousy time of it too.

These drops are announced just before the Competition and Markets Authority publish their report, which is going to announce new measures which are aimed at sorting out the energy market, which has been overcharging everyone for years.

Of course, E.On and the AgeUK charity came under a lot of scrutiny recently, after it emerged that pensioners were being flogged energy deals that weren't actually the cheapest on the market. The deal between the two has since been suspended.

This overcharging will be one of the reasons there's very little sympathy for E.On, and the rest of the Big Six energy providers should they post similar results.

E.On have said that this financial slump was because of a collapse in commodity values, and a drop in European wholesale electricity prices. The UK subsidiary of E.On said that they'd seen flat profits, despite a 9% fall in earnings to £267m from their supply business.

One of the things that is concerning the Big Six is a push toward non-fossil fuels, as well as the rise of small independent energy suppliers like First Utility and Ecotricity.

TOPICS:   Utilities

1 comment

  • Bonobo
    If you choose to go with First Utility, good luck with trying to get through. Even if you joined online you'll still find yourself on the phone for hours waiting for them to un-fuck-up your application.

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