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Highlights:
- Energy bills are expected to hit £3,000 yearly in October when the new energy price cap revision takes place.
- To reduce the strain on the power grid, a utility firm is planning to reward people for not using their energy-intensive appliances during peak hours.
Millions of Brits are troubled by the soaring energy bills, which are expected to exceed £3,000 yearly in October from £1,971 at present. Several experts have warned that they'll reach £4,200 in January. Moreover, experts at energy consultancy Auxilione have claimed that the energy bill for the average UK household may hit a whopping £6,000 annually from next April.
While people are concerned about the imminent hikes, energy suppliers are coming up with innovative ideas to provide some relief from the soaring bills to the Brits during this winter. According to a news report, people could be rewarded for turning off their high-power appliances during peak times.
Image source: © Starush | Megapixl.com
According to reports, the National Grid Electricity System Operator (ESO) is planning to incentivise consumers for not using appliances such as dishwashers, tumblers dryers etc. between 5 pm and 8 pm. Notably, turning these appliances off during the period will significantly ease the strain on the power grid.
Consumers who have smart meters installed at their premises can save up to £6 per kilowatt hour (kWh). One kWh of electricity is equivalent to using a dishwasher for a little less than an hour. It is believed that National Grid will apply to UK's energy regulator Ofgem for approval. If everything goes well, the scheme could come into effect in late October.
In the wake of this news, let us explore some London-listed energy stocks and analyse their investment prospects.
National Grid Plc (LON: NG.)
Shares of the electricity and gas utility firm were up by 0.60% and were trading at GBX 1,175.50 as of 11:14 am GMT+1 on 22 August. The firm currently holds a market cap of £42,767.89 million, and it is a constituent of the benchmark FTSE 100 index. Over the past 52 weeks, the stock has provided a 20.17% return to investors, while its earnings per share stood at 0.65.
Centrica Plc (LON: CNA)
Shares of the British energy services and solutions firm were trading 0.90% higher at GBX 83.42 as of 11:17 am GMT+1 on 22 August. Witnessing an upward trend in price movement, the stock has appreciated 64.27% over the past 52 weeks, with its earnings per share standing at 0.21. Listed on the FTSE 100 index, Centrica holds a market cap of £4,884.41 million.
SSE Plc (LON: SSE)
SSE is another British multinational energy utility company, and its shares were trading at GBX 1,852.00, up 0.57%, as of 11:21 am GMT+1 on 22 August. SSE plc was enjoying a market cap of £19,661.47 million and has offered its shareholders a return of 11.05% over the past 12 months. Those who entered the stock five years ago have been provided with a return of over 30%. At present, SSE's earnings per share stand at 2.87.
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.
