Eon: UK sales suffer £800m slump as prices fall
Turnover at the UK arm of energy giant Eon has slumped by more than £800m thanks to a fall in wholesale commodity prices, it has been revealed.
The Coventry-headquartered division of the German group, has reported a turnover of £2.5bn for 2024, down from the £3.3bn it achieved in 2023.
But despite the fall in sales, Eon’s pre-tax profit increased over the same 12-month period from £49m to £52m as a result of gains made through a series of disposals.
However because of the fall in its turnover, the division went from making an operating profit of £20m to a loss of £58m, according to new accounts filed with Companies House.
The latest results come after the UK arm of Eon returned to the black for the first since 2020 in its prior financial year.
During the year the average number of people employed by Eon in the UK increased from 795 to 905.
Mixed news for UK energy bill payers
The results have been published on the day energy prices for 21m households in England, Scotland and Wales fell under regulator Ofgem’s latest price cap.
The move will see the bill for a household using a typical amount of gas and electricity is drop by £11 a month
However, there remain concerns that bills will still have a significant impact later in the year despite the seven per cent cut.
Last week, the government’s long-awaited industrial strategy included plans to cut energy costs for thousands of businesses.
Under the proposals, the government said it is aiming to decrease the bills of electricity-intensive manufacturers by up to £40 per megawatt hour from 2027.
The government said this could benefit more than 7,000 companies.
Energy-intensive firms such as glass and steel will also benefit from an increased discount on electricity network charges from 60 per cent to 90 per cent.
However, Ofgem has given the go-ahead to an initial £24bn of investment to upgrade UK energy infrastructure, but revealed the move will push up network charges on household bills by more than £100.