Utility company Northern Powergrid saw its profits fall by more than £10m last year despite increasing sales.
The electricity company saw its turnover jump £7m to £335.3m for the year ending December 31 2018, but it was hit by increased costs that affected its bottom line.
The cost increase meant that Northern Powergrid’s operating profit fell from £133.6m to £123.2m.
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In the company’s accounts, CEO Philip Jones said the dip in profits was caused by “higher depreciation, higher business rates and higher pension deficit payments offset by higher revenues”.
A spokeswoman for the firm said: “As part of our business plan we have a £3bn programme to improve the region’s power network for our customers.
“The investment we make has increased in recent years and the cost is financially spread over 45 years. The reduction in operating profit was in keeping with our long term plans and reflects the increased costs of our investment programme, rising faster than the prices we charge our customers.
“This investment is in line with our regulatory commitments and the promise we made to our customers in our current eight-year business plan to deliver improvements that will create a smarter grid to support the growth in low carbon technologies and meet the needs of future energy systems.”
Northern Powergrid’s headcount grew during the period with the firm increasing its staff roster by 37 to 1,109.
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During the year the company also invested £171.3m through its approved network investment strategy. The money was used to reinforce the primary network, refurbish transformers, and rebuild overhead lines, among other maintenance work.
Northern Powergrid is currently working on a number of projects designed to lower carbon emissions across the 海角视频.
Explaining some of the projects being carried out, Mr Jones said: “A partnership with Nissan is supporting new electric vehicle projects for the trialling of ‘vehicle to grid’ technology to enable car users to supply power to the electricity network.
“In addition, a new project is developing hybrid battery technology to expedite the restoration of the electricity supply following a power cut. Collaboration with Northern Gas Networks at the Integrel demonstrator site continues to assess the potential future benefits of integrating both gas and electricity energy systems.”
The group has also said that climate change will impact its business. To mitigate the risks, the firm is developing new vegetation management programmes, improved weather prediction, and is installing flood defences.