National Grid makes 38% profit
2nd June 2016 | Residential Energy
National Grid, the company responsible for the network supplying gas and electricity to UK homes, made £6.8 billion, of which £2.8m was profit.
Essentially a monopoly, so theoretically able to charge what it likes, its prices are overseen by Ofgem, the energy regulator. The cost to transport electricity makes up about 20% of the average household energy bill, which gas makes up 18%, most of which is charged by National Grid.
38% is very high and compares favourably with Google (20%), British Gas and SSE (5%) and Sainsburys (4%). Few companies have higher profit levels: Apple has a 40% margin. Perhaps Ofgem could force National Grid to charge less, and reduce prices to some of those most hard up.
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