Increasing levels of bad debt hit returns for Drax-owned business energy suppliers Opus Energy and Haven Power.
The companies increased market share by 1 per cent, but margins were below target and the market remains challenging, said CEO Will Gardiner. Drax will continue investing in digital technology to lower cost to serve and improve retail margins, he added. Bad debt charges increased 72 per cent to £31m.
For the year ended 31 December, B2B energy sales increased from £1,999 million in 2017 to £2,242 million in 2018. B2B energy supply adjusted gross profit improved from £117 million in 2017 to £143 million.
Noting business risks for the year ahead, the company said it “remains vigilant to the risk” that Ofgem’s retail price cap “could be extended to some SMEs”.