Household energy firms could rack up eye-watering £1.74billion in profits over next year

HOUSEHOLD energy suppliers could rack up £1.74billion in profits in the next 12 months from consumer bills.

Profits have surged in the last six years as the amount suppliers can make on the average variable tariff climbed from £27 in spring 2017 to £130 in early 2023. It currently sits at £60.

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The £1.74billion prediction from the Warm This Winter Tariff Watch excludes any profits suppliers can get from Ofgem’s Covid and Ukraine allowances, which recently boosted profits for British Gas and Scottish Power.

Simon Francis, coordinator of the End Fuel Poverty Coalition, said: “This report exposes the murky depths of our broken energy system.

“Without fundamental overhaul of the energy grid and tariffs, households will continue to lose out while suppliers will profit.”

The report also highlighted unfair regional variations in the cost of energy.

London, for example, has the lowest standing charge for electricity at 41.9p per day, while Manweb — which covers Merseyside, North Wales and parts of Cheshire — is highest at 65.8p. Bethan Sayed, from Climate Cymru, said: “Regional variations in energy prices are one of the most unjust parts of the system.”

Meanwhile the Centre for Policy Studies said the energy price cap is preventing customers from accessing lower energy tariffs and should be abolished.

Energy expert Dillon Smith, of the Centre for Policy Studies, said: “Utility firms are actively discouraged from offering more affordable deals to customers because of state interventions in the energy market. Competition has all but disappeared.”

Bearing up well

MOOD BEARS, a British female-founded toy brand which won backing from all five investors on TV’s Dragons’ Den is set to go global.

Toy giant TOMY has acquired the worldwide rights to future manufacturing, sales, and distribution of the teddy bears, which come in different colours to reflect different moods.

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Mood Bears founder Joanna Proud bagged £20,000 from Deborah Meaden, and her fellow Dragons for 25 per cent of her firm earlier this year.

She said: “Working with Tomy, our passion to ‘make the world smile’ will thrive.”

Swift hit on July splurge

CONSUMER spending growth eased in July as shoppers thought twice about splurging.

While spending on plastic cards climbed by 4 per cent over the year to July, research by Barclays said that was down from the previous month’s 5.4 per cent growth.

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The bank found nine out of ten shoppers are concerned about rising food prices, with seven in ten looking for ways to reduce weekly shopping costs.

However, sales of concert tickets helped to boost plastic card spending — as well as shelling out on pubs and clubs.

Spending on non-essential items climbed 5.6 per cent compared with a year ago, with bars, pubs and clubs showing 7.6 per cent growth.

And the entertainment sector saw a 15.8 per cent growth, boosted by popstar Taylor Swift’s plans to tour the UK.

Barclays’ Esme Harwood said: “Entertainment enjoyed a huge boost, largely thanks to pre-sales for Taylor Swift’s and Foo Fighters’ stadium tours.”

DROP Jobs firm 45% drop

RECRUITMENT firm Page Group said profits fell 45 per cent to £63million in the past six months, with workers reluctant to accept permanent jobs.

Chief exec Nicholas Kirk said: “Temporary recruitment outperformed permanent, as clients sought more flexible options.”

The temporary jobs part of the firm saw a 15.3 per cent rise. Revenue leapt 5.8 per cent to just over £1billion for the six months to the end of June.

Price of house down £1k

THE average UK house price fell by nearly £1,000 in July.

The typical home now costs £285,044, compared with a peak of £293,992 last August, according to the Halifax.

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The average price fell by 2.4 per cent over the year to July and dropped 0.3 per cent over the month.

 Halifax Mortgages director Kim Kinnaird said: “Prospects for the housing market remain closely linked to the performance of the wider economy.

“Several factors are providing support — notably strong wage growth running at around 7 per cent annually.”

Despite the falls, house prices remain a fifth above pre-Covid levels, meaning the average is still £45,000 higher than it was four years ago.

The Halifax said activity among first-time buyers had been holding up. Some prospective homebuyers are searching for smaller homes to offset higher borrowing costs.

The Bank of England has raised interest rates 14 times — to 5.25 per cent last week,

Nicky Stevenson, of estate agents Fine & Country, said: “Smaller homes in affordable locations are the biggest draw”.

Property firm dips

SHARES in property services firm LSL Property Services slumped 10 per cent yesterday after it issued a profit warning.

It said the group’s annual profit will be “substantially lower” than previously forecast because of subdued activity in the mortgage market.

The business, which owns estate agent Reeds Rains and surveyor E.Surv, said: “Market conditions have been challenging and recently have become more difficult.”

Analysts at Peel Hunt said the company’s full-year profit could drop to £9million — less than half of the previously expected £21million.

An £11m pension

THE UK’s biggest pension pot stands at around £11million, according to an FOI request.

Wealth manager RBC Brewin Dolphin said for the largest pension, an 18-year-old would have to invest £49,260 every year until the age of 68.

Data showed that 929,000 savers have pensions worth between £1million and £2million, with 46,000 in the £3million or higher bracket.

“Money saved regularly over long periods can produce dramatic results,” said Rob Burgeman, investment manager at RBC Brewin Dolphin.

WAITROSE is introducing dedicated areas for low-alcohol and no-alcohol drinks in 253 shops. Research by beverage giant Diageo found sales of such drinks have grown by 20 per cent in one year, with sales of no-alcohol beer growing fastest.

Allsaints pay

LEATHER jacket fashion brand Allsaints said sales jumped by a quarter in the year to the end of January to £391million, up from £313million the previous year.

The London-based premium brand has about 240 shops, concessions and outlets globally with over 2,000 staff. AllSaints opened its first Chinese mainland store in Shanghai earlier this year.

Sales were also helped by backing in a digital platform.

Boss Peter Wood said: “These results are a huge credit to our fantastic team.”