Tougher competition in the UK energy market is likely to hurt profits at npower this year, its German owner RWE has warned, adding to its woes as it struggles to compete with Europe’s burgeoning renewable energy sector.
RWE posted its first loss in more than 60 years in 2013 following a €5bn (£4bn) write-down to the value of its European power plants, which are losing out to fierce competition from renewable energy suppliers.
The company also said it expected profits at npower, its UK supply arm, to fall in 2014, due to increased competition among energy suppliers. RWE’s UK business brings in around 17pc of total revenues and 5pc of total profits.
RWE swung to a net loss of €2.76bn in 2013, from a profit of €1.31bn a year earlier, its year in the red since 1949.