E.ON reports record annual loss – and it’s all because of plunging wholesale costs

By Energy Company Numbers on March 20, 2015 in Uncategorized
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Not a fan of the big six’s dominance of the UK energy market? Then read this news with a wide, Cheshire cat grin on your face – E.ON has announced a record annual loss, and it’s blamed plunging wholesale electricity prices and very low oil prices.

How can a company like eon lack the foresight to predict wholesale costs spiralling? That’s unclear, however the company is taking action; it plans to spin off its troubled fossil fuel business. Importantly, plunging wholesale costs are only half the picture – Tony Cocker, the chief executive of E.ON UK, said milder weather and improved energy efficiency in British homes were behind the fall in power use, hitting sales.

The true cost of E.ON’s dip in performance

As you might expect, spinning off its troubled fossil fuel business comes at a cost – jobs. The Grimsby Telegraph reports that E.ON is going to pull the North Killingholme power station in a move that puts around 50 jobs at risk. And not fat cat jobs or anybody who’ll receive a bumper payout and likely stay at e.on within another role – the jobs of the working class, people who go to work every day to put food on the table and simply get by.

This move has now been confirmed by E.ON, however it’s likely that if there are any job cuts, it will be normal working folk who are first in line for the chop. It’s a horrible move, but e.on you’ve got to remember is a business – a gigantic, profit-making business.

“”The reality, however, is that the market conditions for gas-fired power stations are extremely difficult and without support from the SBR contract, permanent closure is a real and present risk to Killingholme.

“Over the last few years we have invested billions in the UK’s energy infrastructure but there is no doubt that the challenging operational environment continues to provide uncertainty and risk that must be addressed.”

Tony Cocker, E.ON UK CEO.

eon contact phone number

Here’s hoping that any measures e.on takes to reduce costs and increase profits don’t come at the expense of customers as well as workers. The eon contact number we have will be ringing off the hook if that’s the case. If you have any concerns about E.ON’s dip in performance, we invite you to contact eon customer service to enquire as to whether or not it will have a direct impact on you.

In other news…

E.ON isn’t getting any slack lately – they’ve been largely criticised for their response to Ed Milliband’s demands for further price cuts to drive down household bills.

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Energy Company NumbersView all posts by Energy Company Numbers
Energy Company Numbers is a telephone number directory service dedicated to helping UK consumers keep in touch with their energy suppliers.

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