News Column

E.ON's profits melt in mild winter

August 14, 2014

Jennifer Rankin

UK profits have slumped by a third at energy firm E.ON after a mild winter caused lower demand for heating.

The German-owned company, which supplied power to 4.8 million UK households and 500,000 businesses in 2013, also said it was concerned about the political crisis in Ukraine and reported a sharp fall in profits from its Russian division.

Britain accounts for 9% of E.ON's earnings but energy sales fell by 10% in the first half of 2014, compared with the previous year when the UK endured a big freeze and a delayed start to summer. Tony Cocker, UK chief executive, said: "The first six months were actually considerably warmer in comparison to the same period in 2013. This has meant customers have used less energy."

UK profits, measured as earnings before interest, taxes, depreciation and amortisation, fell to pounds 188m in the first six months of 2014, against pounds 273m the previous year.

E.ON is one of the big six energy companies under fire from politicians and consumer watchdogs for alleged profiteering. Officials at the Competition and Markets Authority have embarked on the largest-ever investigation of the energy market.

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Source: Guardian (UK)

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