- Energy bills have soared and are expected to rise further when the next energy price cap revision takes place in October.
- Several campaigners are calling on consumers not to pay their energy bills when they rise.
Millions of Brits have been troubled by soaring energy bills ever since the price cap revision came into effect in April. The revision raised the cap by 54% to £1,971 from £1,227, putting a huge squeeze on people's pockets. Those in the lower income group are the hardest hit, with some being forced to reduce their energy consumption even for necessities like heating.
This comes as energy firms have been hitting record profits in recent months. As a result, campaigners have been calling on consumers not to pay their energy bills when the next revision takes place in October.
Started by anonymous campaigners, the Don't Pay group already has support from 80,000 people to withhold bill payments. The group says it'll take action if one million people take the pledge to refuse to pay their energy bills.
Image source: © Andreypopov | Megapixl.com
However, UK charities have warned of 'serious consequences' if people don't clear their bills, saying the consumers may be forced to get a prepaid meter installed in such a situation. Energy firms may also threaten to disconnect the supply if a consumer doesn't pay the bill after 28 days.
Kalkine Media® looks at some energy stocks that may get affected due to the action.
National Grid Plc (LON: NG.)
The UK-based electricity and gas utility firm has operations in the UK and the US. With a market capitalisation of £40,950.11 million, the company's share value has appreciated by 21.15% over the last 12 months, while the year-to-date or YTD return stands at 7.61%. As of 1:32 pm GMT+1 on Monday, the stock traded at GBX 1,140.50, up 1.65%.
SSE Plc (LON: SSE)
Another UK-based multinational energy utility company is SSE Plc, which is listed on the blue-chip FTSE 100 index. It has a market cap of £18,924.77 million and has given a return of 15.69% to investors in the past 12 months. The stock has an earning per share of 2.87, and it was trading 0.93% higher at GBX 1,789.00 as of 1:42 pm GMT+1 on Monday.
ContourGlobal Plc (LON: GLO)
The company is engaged in power generation and has operations in 20 countries across the world. It is listed on the midcap-focused FTSE 250 index, and its stock value has jumped nearly 30% over the past 12 months. On a year-to-date basis, the stock price has climbed 34.17%, and the earnings per share is 0.02. Shares of ContourGlobal were trading at GBX 256.00, down 0.39% as of 1:52 pm GMT+1 on 8 August.
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