Owner of ‘Scottish Gas’ tops league-table of profits for Big Six energy providers

Big Six profit margins 2016 OFGEM chart
Big Six profit margins 2016 OFGEM chart

This OFGEM chart shows the dual-fuel gas and electricity pre-tax domestic supply margins of the six large suppliers in 2016.

It is based on information reported by the large suppliers to the UK energy market regulator in their annual Consolidated Segmental Statements.

Between 2015 and 2016, profits earned by the six large suppliers continued to vary substantially and showed an increase in the average combined gas and electricity pre-tax domestic supply margin from 4.1% to 4.5%.

Top of the pile – with pre-tax profit margin of 7.18% – is Centrica (which owns the ‘Scottish Gas’ and ‘British Gas’ brands (shown in orange, at top)

Close behind second-place is Perth-based utility SSE (shown in pale blue, second top) with a pre-tax profit margin of 6.95%

These are well above the average Big Six profit  margin of 4.48% (shown as dotted line, above)

Scottish Power (shown in dark blue, third from top) also generated a healthy pre-tax profit margin of 5.2% despite showing a decreasing trend.

However, EDF (shown in light blue, second from bottom) – the French-owned nuclear-cum-wind power generator made a loss of almost 1% while N.Power lost more than 6% (shown in  deep purple, at foot).

1 Sept 2017

Pixie Energy

Pixie logo Pixie Energy is an incubator and a facilitator of strategic research and project work, focusing on energy regulation, policy and markets at the local and national level. Find out more about Pixie Energy here.

Local Energy Matters: Scotland

Local Energy Matters: Scotland is a free-to-download brochure with a focus on energy tariffs in the two Scottish electricity distribution regions, as well news on local energy and low-carbon schemes.

Previous editions can be download here.

Scottish energy market overview

You can read an overview of the Scottish energy market here.

Scottish Government energy feed