Interim profits cut at NW power network operator
Stockport-based power network operator, Electricity North West, has seen its interim revenues and profits decline, during the six month period to September 30, 2023.
Its unaudited accounts reveal a fall in revenues, from £273.1m in 2022, to £268.1m for 2023.
The organisation said its turnover was consistent with revenue in the same period in the prior year.
It said the allowed revenue set by the regulator Ofgem is recovered against an estimated level of electricity demand across the network.
Given the difficulty of predicting this demand each year, the company said it ends up with either an over or an under recovery against planned revenue.
These over or under recoveries are reflected in the reported revenue for the period and will be corrected in future periods through the Ofgem price setting mechanism.
Electricity North West said the revenue for the half year to March 31, 2024 is expected to be higher than that in the half year to September 30, 2023, due to the seasonally higher volumes of electricity units distributed over the winter period.
A pre-tax profit of £82.7m was recorded, which compares with £189.9m in the prior year.
A pension surplus of £70m compares with a surplus of £96.7m in the same period a year ago, and a £42.6m surplus at March 31, 2023.
Net debt increased by £99.7m over the half year.
This was primarily due to a lower cash balance, resulting from the £87m accretion payment, and a £21.5m increase in the index-linked debt arising from RPI increases.
During the half year, the company paid dividends of £18.6m.
However, the directors do not propose an interim dividend for the year ended March 31, 2024.