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Highlights
- According to Energy UK, around 12 million UK households spend nearly 10% of their income on energy bills.
- Energy regulator Ofgem pointed out that customer calls to suppliers and support calls have increased by 300%.
Millions of British households have been rocked due to the skyrocketing energy bills amid the spiralling cost of living crisis over the year. Even though the Energy Price Guarantee has managed to ease some of the burdens on households, a household with typical energy usage will still have to shell out £2,500 a year for their energy.
Currently, the per unit rate for electricity under the scheme is 0.34p kwh and a standing charge of 0.46p. The Energy Price Guarantee scheme is expected to remain in place until April 2023. However, according to Energy UK, some energy services are openly defying the rules set by the energy regulators, forcing around 12 million households to spend over 10% of their income on energy bills.
Energy UK’s chief executive Emma Pinchbeckreportedly said it’s time that energy regulator Ofgem should penalize such energy services for overpricing. She further pointed out that customer calls to suppliers and additional support calls have increased by 300%.
Regulator Ofgem recently announced that it is reviewing the checks and balances the energy firms have followed when placing customers on pre-payment meters. It further warned if found liable, and then it would take legal action against those who are not following the rules set by them. Ofgem officials hinted that it intends to root out the overpricing of customers.
In the wake of this, Kalkine Media® explores some FTSE-listed energy stocks.
National Grid Plc (LON: NG.)
National Frid Plc is one of the world’s leading, publicly listed energy and gas transmission and distribution companies. The London-based firm boasted a market cap of £37,682.57 million as of 1 February 2023. With an EPS of 0.65, the NG. stock hasn’t had the best of time amidst the rising energy crisis, giving negative returns of -5.06% over the past 12 months. National Grid Plc’s shares were trading at GBX 1,023.00, down by 0.20% as of 10:39 am (GMT) on Wednesday.
Drax Group Plc (LON: DRX)
On Wednesday, the British electrical production organization Drax Group was seen trading at GBX 651.50, up by 0.85% as of 10:39 am (GMT). The FTSE-250 constituent held a market cap of £2,590.66 million and an EPS of 0.2. The DRX stock, too, had decreased by 8.11% YTD at the time of writing. Over the past year, the Drax Group surged by 7.49%.
Centrica Plc (LON:CNA)
The international energy services and solutions company Centrica Plc holds a market cap of £5,864.61 million as of 1 February. Centrica Plc, on Wednesday, was trading at GBX 101.90 and was up by 1.14% at 10:39 am (GMT). The stock has given its investors 39.2% and 4.38% on a one-year return and a YTD basis.
Note: The above content constitutes a very preliminary observation or view based on market trends and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.
