News / bristol energy
Bristol Energy reports £11.2m loss
The energy company owned by Bristol City Council has posted a loss of £11.2m for the 2017/18 financial year.
While the figure no doubt represents the latest in a string of bad news stories for Bristol Energy, the firm has quadrupled its turnover for the same period, from £13.6m to £52.4m.
The company insists that it continues to deliver social value in the city, but within the report it states that “the Directors do not believe that there is sufficient certainty that the Company will make taxable profits in the foreseeable future”.
is needed now More than ever
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Read more: Bristol City Council drops own energy company
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Hailed a force for good when it launched in 2016, Bristol Energy has made headlines with its focus on fuel poverty and pioneering environmental initiatives, such as using human waste to power homes.
But the company – which is wholly owned by the council but operates on the open market – also faces flagging public confidence as it continues to operate at a loss.
It was dropped by Bristol City Council in favour of one of the ‘Big Six’ firms following a procurement process in April 2018 and managing director Peter Haigh announced his departure in December.
Peter Haigh stood down in December 2018
Responding to the accounts, published by Companies House on Friday, a spokeswoman for Bristol Energy said: “During the financial year 2017/18, Bristol Energy’s residential customers on supply grew by over 62,000 customers.
“We doubled our business customers supply volume, turnover increased nearly four-fold and the company’s gross margin grew by over £3m.
“The losses outlined in our latest accounts are in the range of what was expected as we continue to build on the solid position we’ve established within the sector.
“It has been a tough 12 months for the energy retail market due to market and regulatory conditions, with wholesale energy prices hitting a 10-year high this year.
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The spokeswoman added: “Despite these challenges we’re continuing to attract new customers and grow our business sustainably – thousands are joining us every month – and we’re helping to tackle fuel poverty in the city with our Fuel Good Fund.
“We’re building an energy business that continues to deliver social value in our home city of Bristol while delivering value and choice for customers across the UK.
“We also recognise there’s an opportunity to work with our shareholder, Bristol City Council, to further develop our business. We’re redefining the company, to enable a business model which will deliver a variety of projects aimed at providing sustainable and resilient energy platforms for the city.
“This aligns with the founding principles of the company to help people in our local communities while supporting Bristol in achieving our shared ambition of becoming a carbon neutral city.”
Portsmouth City Council decided to cut its losses and pull the plug on plans to launch its own energy company before it was even operational in August of last year.
Bristol City Council has invested some £27m in Bristol Energy to date and has been approached for comment.
Read more: Bristol Energy is open for business
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