Power surge as profits leap at Electricity North West
ELECTRICITY North West, which owns and operates the region’s power networks, serving around five million customers, has reported a surge in revenues and profits.
The formed Norweb business which was sold in 2007 by United Utilities for £1.1bn to a consortium of infrastructure funds controlled by First State Investments Fund Management, said operating profit had increased 19% to £225m in the year to the end of March as a result of an increase in allowed revenues and rising inflation.
Revenues in the year rose 15% to £468m and pre-tax profits more than doubled from £55m to £176m.
Chief executive Steve Johnson said: “The financial year ended 31 March 2013 has been another strong year for the company, characterised by robust operational and financial performance against a background of preparation for the 2015- 2023 regulatory price review.
“We’re now three years into a five-year £1.4bn investment programme for the North West and have just seen the biggest direct investment ever in the region’s network. Our role is to keep the lights on, and as everyone uses more electricity, we’ve got to make sure that the network has the capacity to meet demand.
“Our investment plan for the network spans tens of years, so although our profit may rise or fall from one year to the next, the overall impact is a steady increase which allows for reinvestment in the network over a much longer period.
The company said it had begun building a new £2m training academy for new recruits and existing engineers at Whitebirk, in Blackburn.
Spend on key operational assets – the equipment that makes up the physical network to transport power – rose 14% from £185.7m in 2011/12 to £211.3m in 2012/13. Overall capital expenditure in the year was £217m, slightly below the £224m the previous year.
Electricity North West increased its net debt has increased by £41m
as a result of capital investment and dividends paid exceeding its net operating cash flows. Total net debt now stands at £1.044bn.
