npower announce increased profits, but say investment is key

Energy supplier npower today announced increased profits of £313 million for 2011- a rise of 34%. The company, which has more than six million customers, said the profits were “a […]

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By Tom Gibson

Energy supplier npower today announced increased profits of £313 million for 2011- a rise of 34%. The company, which has more than six million customers, said the profits were “a result of efficiency improvements and income from power generation assets.”

While some have criticised the firm’s relatively large profits (earnings before tax were 606m euros for 2011), npower said the earnings are being pumped back into the UK through major investment projects. In 2011 RWE claims it invested £968m in an on-going programme which has included power stations at Pembroke and Staythorpe.

RWE claims the total investment in the UK since 2009 (£3.41bn) is now more than npower’s combined profits since 2006 (£2.05bn).

Volker Beckers, RWE npower CEO said: “We’re working hard to make sure our business performs well and to see that our investors and customers are offered the best possible value.

“In these difficult times, we recognise that many people are concerned about rising energy costs, which is why it’s essential we continue to make strong investments in much needed, new energy infrastructure as these will help to reduce the UK’s exposure to volatile energy prices, while also making a valuable contribution to economic growth.”