Energia profits down

The cost of entering the residential electricity market last year contributed to pre-tax profits at Energia decreasing by 38.5% to €26.78m.

Accounts just filed by Energia show that the firm recorded the drop in profit as revenues declined by 7% from €926.9m to €861m in the 12 months to the end of March 31.

According to the directors’ report, revenues decreased by €65.9m “primarily reflecting lower customer consumption”.

The figures show that the firm’s volumes of electricity sales last year reduced from 4.3Twh to 4.1Twh, with gas volume sales reducing from 70.1m therms to 64.2m therms.

The directors state that arising from the firm’s entry into the residential electricity and gas market on January 30, 2014, it incurred a loss of €2.2m.

However, the firm reports that by the end of March last, the firm had 10,000 residential customers.

Separate figures from the Commission for Energy Regulation show the number of domestic market customers Energia had by the end of June last year had increased to 24,654 making it the largest net gain of domestic customers during the period.

The directors state that the firm’s operating profit last year declined from €46m to €29.1m reflecting costs of entering the residential electricity and gas market, lower contribution from renewable Power Purchase Agreements, lower sales volumes, reduced retail margins, and higher operating costs.

Aggregate remuneration for the three directors, Siobhan Bailey, Gary Ryan, and Garrett Donnellan, last year topped €1m, made up €513,000 in remuneration, including pensions, from Viridian Energy, with an additional €523,000 from other Viridian firms.