The º£½ÇÊÓƵ branch of energy titan Eon has seen its turnover drop by over £800m due to a decrease in wholesale commodity prices, according to recent revelations.
The Coventry-based division of the German group reported a turnover of £2.5bn for 2024, a significant decrease from the £3.3bn it achieved in 2023, as reported by .
Despite the slump in sales, Eon's pre-tax profit saw an increase over the same 12-month period, rising from £49m to £52m, thanks to gains made through a series of disposals.
However, due to the fall in turnover, the division shifted from making an operating profit of £20m to a loss of £58m, as per new accounts filed with Companies House.
These latest results follow the º£½ÇÊÓƵ arm of Eon returning to profitability for the first time since 2020 in its previous financial year.
Over the course of the year, the average number of people employed by Eon in the º£½ÇÊÓƵ rose from 795 to 905.
Mixed news for º£½ÇÊÓƵ energy bill payers
The results were released on the same day that energy prices for 21m households in England, Scotland and Wales decreased under regulator Ofgem's latest price cap.
This adjustment will result in a typical household's gas and electricity bill dropping by £11 a month.
However, there are ongoing 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 reduce energy costs for thousands of businesses.
The government's proposed plans aim to reduce the bills of electricity-intensive manufacturers by up to £40 per megawatt hour from 2027, potentially benefiting over 7,000 companies.
Energy-intensive industries like glass and steel will also gain from an increased discount on electricity network charges, rising from 60 per cent to 90 per cent.
However, Ofgem has approved an initial investment of £24bn to upgrade the º£½ÇÊÓƵ's energy infrastructure, a move that will increase network charges on household bills by more than £100.
