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Highlights
- Centrica has appealed to the energy watchdog to ensure that all the providers are protecting the money of consumers.
- UK energy regulator Ofgem is all set to increase the price cap by 54% in April, which would further raise the energy bills.
Just a day after the UK energy regulator Ofgem announced two short-term measures to support the stabilisation of the UK energy market, British electric services firm Centrica appealed to the energy watchdog to ensure that all the providers are protecting the money of consumers. The recent measures announced by Ofgem also aim at protecting the consumers from further burden on their already soaring energy bills, as energy prices are all set to jump up in April with a 54% increase in the price cap.
Around 30 energy suppliers have gone bust last year due to skyrocketing prices, and since August 2021, 26 have gone bankrupt. On 17 February, Centrica said that over £500 million of UK consumers has been lost and it was its responsibility to protect the deposits of customers. Centrica said that it is dedicated to protecting customers' deposits worth £294 million, that it is currently holding in an individual bank account.
Let’s take a look at 5 of the UK energy utility stocks which may be impacted by the increase in the energy price cap.
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Centrica PLC (LON: CNA)
British global energy and services firm Centrica plc is a leading supplier of electricity and gas to the UK and Ireland. The current market cap of the FTSE250-listed firm stands at £4,559.33 million. Centrica plc’s shares closed trading at GBX 77.52 on 17 February 2022.
National Grid plc (LON: NG.)
Largest publicly traded utility company across the globe National Grid plc is involved in the transmission and delivery of electricity and gas across the UK. The current market cap of the FTSE100-listed firm stands at £39,394.20 million. National Grid plc’s shares closed trading at GBX 1,078.60 on 17 February 2022.
SSE PLC (LON: SSE)
Leading Scotland-headquartered energy firm SSE PLC operates across the UK and Ireland. The current market cap of the FTSE100-listed firm stands at £16,883.21 million. SSE PLC’s shares closed trading at GBX 1,605.50on 17 February 2022.
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Drax Group Plc (LON: DRX)
Engaged in energy generation from biomass, Drax Group Plc is a UK-based renewable energy firm that strives to become carbon negative by 2030. The current market cap of the FTSE250-listed firm stands at £2,453.25 million. Drax Group plc’s shares closed trading at GBX 614.50 on 17 February 2022.
ContourGlobal PLC (LON: GLO)
UK-based firm ContourGlobal plc is involved in wholesale power generation. The current market cap of the firm stands at £1,190.24 million as of 17 February 2022. ContourGlobal plc’s shares closed trading at GBX 183.80 on 17 February 2022.
Note: The above content constitutes a very preliminary observation or view based on industry 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.
