Main content

npower Full Year 2016 Results

Operating Result

FY 2014
£M

FY 2015
£M

FY 2016
£M

Change
£m

Change

%

 

£183

-£99

-£90

+£9

10

Revenues

FY 2014
£M

FY 2015
£M

FY 2016
£M

Change
£M

Change

%

 

£7,866

£7,025

£6.103

-£922

-13%

Customer Accounts

FY 2014

FY 2015

FY 2016

Change

Change

%

Domestic
SME
Industrial & Commercial

5.13m
0.21m
0.21m

4.78m
0.20m
0.23m

4.71m
0.18m
0.23m

-0.07m
-0.02m
0.00m

-1%

-1%

+0%

Customer Service

FY 2014

FY 2015

FY 2016

Change

Change %

Incoming Complaints

1,481,054

695,637

339,636

- 356,001

- 49%

 

Paul Coffey, CEO npower commented:

“In 2016 we took the first strides forward in changing the course of npower in an intensely competitive and difficult market environment.  That environment won’t get easier, so we absolutely need to carry on getting better.

“We made clear operational improvements that enabled us to both save money and to improve our overall performance.  From being a consistent outlier on subjects like complaints, we are now ranked in the middle of the table.   The recovery plan we outlined a year ago has enabled us to make substantial savings already, and we expect considerably more to come in 2017.

“As the regulator has acknowledged, there were considerable increases in wholesale costs in 2016, particularly later in the year.  Added to this were the increasing combined effects of policy and regulatory costs, each of which is important for Britain’s energy future, but together are adding to energy supply company costs. These expenditures masked the operating cost improvements implemented last year and therefore we partially reflected these increased costs in the price increase we announced in February.

“Our hard work, determination and the investment in our business processes are having a positive impact on how we work with our customers.  Customer satisfaction has begun to improve and is the highest in three years, introducing greater pricing flexibility has meant that customer account losses significantly reduced compared to last year and we lost the fewest customers of any of the Big Six.  We have also halved the number of complaints we received and are now back at the level before we changed our customer service systems.  The year-end Ofgem figures show we now receive the third fewest complaints per 100,000 customers among the Big Six, and we plan to reduce them still further.  This has been accomplished in a year when we also cut operating costs and arrested three years of decline in company performance.

“All this is just a start.  We are in a much stronger place than 12 months ago to respond and compete within the current uncertain environment and numerous challenges within the energy market in Britain.”

 (ENDS)