Two of the leading energy providers in the UK have seen their profits surge in the past year, amounting to a combined total of almost £3 billion. With many small, medium and a number of larger organisations having to face ever increasing energy prices, the news will come as a shock.
Spanish-owned Scottish Power announced profits of £1.2 billion for 2012; an increase of 12 per cent in the year. Meanwhile, EDF saw its profits up by 7.5 per cent, posting annual totals of just below £1.7billion.
The lion’s share of these profits was made before both companies pushed their prices up in December too.
Both firms were adamant that the profits were fair, despite some customers only being able to meet their commitments by changing their strategy to commercial finance. Scottish Power CCO Keith Anderson said:
“We need to make money in order to invest for decades to come.”
The firm will invest more than £1.3 billion this year. Such investment figures can only be dreamt of by many other firms in Scotland, though some are managing with well-executed invoice finance facilities, such as factoring and discounting.
The chief executive of French-owned EDF, Vincent de Rivaz, also cited high levels of spending on the future, saying:
“these earnings represent a fair return.”
However, the mention of fairness by EDF will no doubt anger many consumers. Just days before the firm announced its huge profits, it was named as the UK’s most complained about supplier in the last quarter of 2012.