British electricity distribution companies are generating “huge” profit margins of up to 39 per cent and some are paying investors dividends of more than a third of turnover, according to a new report. The Energy & Climate Intelligence Unit, a think-tank supported by MPs and academics, found the six electricity distribution network companies that operate in the UK mainland, which include SSE and ScottishPower, made an average profit margin after tax of 32 per cent a year between 2010 and 2015. According to the ECIU, this equates to £10bn over six years, or £27 per home per year. In the same period, their shareholders have received an average of 15 per cent a year of company turnover in dividend payments. This amounts to Â£5.1bn over six years, the ECIU said, roughly half the net profit generated, or about £13 per household per year.
FT 5th Sept 2017 read more »