E.On’s price rise benefits melting away

Big six energy giant E.On reported virtually flat profits of £294 million for its UK gas and electricity supply business in 2014 as lower gas and electricity use in warm weather offset the benefit of price rises.

Revenues for German-owned E.On’s residential and business supply unit for the period came in at £7.43 billion, down 8% from the year before.

However, profit only dipped by £2 million after a 3.7% gas and electricity price increase in January last year improved margins.

“The milder winter months that we experienced had a direct impact on sales during the year, as our customers used less energy to heat their homes and businesses,” said E.On UK chief executive Tony Cocker.

The UK generation and oil and gas production unit profits increased by 5% to £406 million.