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Highlights
- The UK households fear a further rise in energy bills during the winter season driven by high energy prices in the country.
- High household energy bills have contributed substantially to the inflation in October 2021, which rose to 10 years high to 4.2%.
The UK households fear a further rise in energy bills during the winter season driven by high energy prices in the country. Domestic electricity and gas prices have risen significantly in the last few months because of the rise in wholesale crude oil prices in the international market leading to a jump in household energy bills.
The UK energy regulator, Ofgem, which regulates the energy prices, updated the energy cap in October 2021 to ensure current energy prices are reflected in the country, which led to a rise in household energy bills. As per energy experts, UK households are spending over 10% of their total income on fuel products, leading to fuel poverty in the country. Also, the welfare benefits provided by the UK government, which temporarily increased during the lockdown, has been restored to pre-pandemic levels, which has put low-income families under financial crisis.
Should you buy these 3 utilities stocks for the long term?
High household energy bills have contributed substantially to inflation in October 2021, which rose to 10 years high to 4.2%, well above the central bank’s target of 2%. Also, inflation is expected to surge further to over the 5% mark due to a rise in food prices and supply chain disruption.
Let us look at 3 FTSE listed utility stocks that are likely to remain in limelight.
National Grid Plc (LON: NG.)
FTSE100 listed company transmits and distributes electricity and natural gas to UK households. The company reported a 55% surge in operating profits at £1,492 million, while its profit before tax was £1,083 million for the six months ended 30 September 2021. The company expects to deliver solid full-year performance with higher earnings per share (EPS) and operating profits.
National Grid Plc currently trades at GBX 983.50, up by 0.87% on 18 November 2021 at 11:15 am GMT+1 with a market cap of £35,266.5 million.
Centrica Plc (LON: CNA)
The company provides electricity and gas to residential customers. It operates in the UK, Norway, North America, and many other countries. The company took over domestic customers of Zebra Power Limited and Bluegreen Energy Services Limited in November 2021 after the two suppliers went bust due to rising gas prices in the UK.
Centrica Plc currently trades at GBX 68.52, up by 1.39% on 18 November 2021 at 11:15 am GMT+1 with a market cap of £3,974.1 million.
Contourglobal Plc (LON: GLO)
The company operates as a power generator having its businesses in Europe and Latin America. It generates electricity from natural gas, diesel, and coal. The company reported a 46% rise in revenue at USD 1,484 million, while its net profit was USD 75 million for the nine months to 30 September 2021. The company expects to generate USD 780 to 810 million in adjusted EBITDA for the whole year with a 10% rise in annual dividend per share.
Contourglobal Plc currently trades at GBX 191.40, down by 0.31% on 18 November 2021 at 11:15 am GMT+1 with a market cap of £1,259.79 million.
