Home Business News E.On earnings impacted over Ofgem’s price cap

E.On earnings impacted over Ofgem’s price cap

by LLB Reporter
13th May 19 3:06 pm

E.On’s UK earning have been dragged down over the impact of the energy price cap and has also blamed “keen competition.”

The energy provider has said the increase over the level of the new default tariff price cap has caused UK earnings to nosedive by £77m.

The UK’s customer solution business “remained under considerable pressure” after posting a £173m drop in UK sales in the three months to March 2019.

E.On reported for the same period a “reduction in power and gas volumes” and the decline follows Centrica’s announcement on Monday.

Sales for the period were up by 4.5% year-on-year to £7.9bn due to growth in their renewable segment.

Adjusted earnings before interest and tax dropped by 8% to £1.44bn, the retail unit had a 44% fall in profits.

Marc Spieker, E.On chief financial officer, said: “Aside from the special case of the United Kingdom, our core businesses delivered a solid performance.

“We can therefore unequivocally reaffirm our forecast for the 2019 financial year.”

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