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Highlights
- UK energy regulator Ofgem has warned power companies to advance its services after 4,000 families suffered badly after Storm Arwen hit in November.
- Around £30 million in compensation have been paid to affected customers as redress payments by three network operators.
UK energy regulator Ofgem has warned power companies to advance its services after 4,000 families faced tough situation in November 2021 following a natural calamity. In a detailed report published by the regulator, it has been specifically mentioned that most companies were under prepared after Storm Arwen hit in November, which left the households without power for over a week.
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The industry regulator revealed that a total of £44 million would have been paid by power distribution firms as a result in failure in their response to disruption, poor communication with customers and for taking too much time to pay the compensation.
Around £30 million in compensation have been paid to affected customers as redressal by three network operators, including Scottish and Southern Electricity Networks, Northern Powergrid, and Electricity North West. They have also agreed to pay a further £10.3 million.
Further, the energy regulator has recommended electricity firms to stress-test their call centers and website for better communication with customers, so that they can reach out faster. Also, they should develop system to speed up compensation payments to affected customers.
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Let us look at some energy utility stocks.
- Centrica Plc (LON: CNA)
The shares of the international energy services and solutions company were up by 0.46% and were trading at GBX 81.40 at 8:20 AM (GMT+1) on 10 June 2022. The company has given its shareholders a return of 56.25% over the last one year, while its year-to-date return stands at 14.07%. The FTSE 250-listed company’s market cap stands at £4,840.64 million as of 10 June 2022.
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2. SSE Plc (LON: SSE)
With a market cap of £18,839.17 million as of 10 June 2022, the share of the FTSE 100-listed multinational energy company was trading at GBX 1,764.50, down by 0.34%, around 8:20 AM (GMT+1) on 10 June 2022. SSE Plc has given its shareholders a return of 13.88% over the last one year.
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- Drax Group Plc (LON: DRX)
The market cap of the renewable energy generation company stands at £2,744.64 million as of 10 June 2022. The company’s shares were trading at GBX 678.50, down by 0.95%, at 8:20 AM (GMT+1), on 10 June 2022. The FTSE250 company has provided its shareholders with a return of 52.67% over the last one year as of 10 June 2022.
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.
