The Ofgem information published today aims to provide a snapshot of the margin energy suppliers receive on a typical standard tariff customer. However, the figures fail to take into account a range of factors that affect margins, such as discounts that we offer and volatility in the energy market.
Our 2010 segmental statement shows that we made no margin on supplying gas and electricity to domestic customers, resulting in a loss of £4m for that segment. Looking back over the 2009 and 2010, the years for which segmental accounts exist, we made an average annual profit from domestic supply of approximately £10 per dual fuel customer, far lower than other retail sectors. This is at a time when ScottishPower is looking to invest £3 billion in the UK energy system between 2010 and 2012.
We are committed to working constructively with the regulator and we look forward to engaging with them further over the coming weeks in order to ensure that the market works effectively and in consumers’ interests.
Media information: Simon McMillan 0141 566 4875/ 07753 622 257