E.ON has today provided details of its financial performance in 2012 showing where its customers’ money went. These figures are on the same basis as will be reported to Ofgem later in the year as part of its segmental accounts.
The company saw its profits from supplying businesses decline compared to a very good 2011. In its residential business that supplies around five million homes across the country customer numbers increased and costs were held almost flat. This was at a time when the costs of other parts of customers’ bills outside of the company’s control increased, for example network charges and the costs of government energy efficiency schemes. Overall, E.ON’s profit margin on supplying residential customers increased slightly from 2% to 2.3%.
Customer supply business (Residential):
- Estimated profit margin on supply of electricity and gas to domestic customers was 2.3% or just under £27 on an average weighted dual fuel residential bill (excl. VAT);
- E.ON operating costs (including metering costs and profit) are around 17% of an average weighted dual fuel residential bill (excl. VAT);
- E.ON reduced and held residential prices in 2012: Electricity cut by an average 6% in February 2012 and a price promise for 2012 put in place from May1;
- E.ON is working hard to improve the relationship it has with its residential and business customers. It was named as uSwitch customer satisfaction overall award winner, but knows that more still needs to be done.
Tony Cocker, Chief Executive, E.ON UK said: “Looking back at 2012 we worked hard to make sure that the choices we made were right for our customers and the efforts we made to freeze our prices and make our customer service better had a real and positive impact.
“As a result of the changes we have made, many of which were difficult and challenging, we were named by consumers and uSwitch as their ‘customer satisfaction overall winner’ for the first time. Our own feedback data also shows an improving picture. We still have a long way to go in terms of how we’d like our customers to view us, I’m heartened by the progress we’ve made by doing things differently.
“This progress is down to our actions – not just words. We listened to what our customers told us and made over 30 significant changes in 2012 as part of our Reset Review. These included offering our best deal to all our residential customers, having fewer, simpler tariffs for our domestic customers and a clear code of conduct for third parties who sell to our SME customers. We made our bills easier to understand by making them just one page long, and made it cheaper to contact us by introducing local rate numbers to call us on. We continue to invest in providing support to the people who need most help. There are many more examples which are united by one common theme, a focus on our customers’ needs.
“We continue to help our customers to control their energy use by providing them with smart meters. We believe we were also the first company to complete its Government CERT and CESP insulation schemes. We also undertook other major projects such as the construction of an energy centre at the Skypark in Exeter that will provide heat for homes and businesses in the area.”
