Centrica Share Discussion Threads

[grupo] 17/4/2022 11:47

Energy suppliers warned over direct debit hikes

Published

1 day ago



The energy regulator has said it has seen "troubling signs" that suppliers may have been increasing direct debit payments by "more than is necessary".

Ofgem said it was concerned that firms may be directing customers to energy deals that aren't in their "best interest".

It comes as households face significant increases in their energy bills.

On 1 April, yearly bills increased by an average of £693 for about 18 million households on standard tariffs.

And some 4.5 million prepayment customers saw an average increase of £708 - from £1,309 to £2,017.

Energy experts have encouraged customers to take and submit meter readings as the changes take effect, in an attempt to save cash.

Jonathan Brearley, chief executive of Ofgem, said the regulator had received information from consumer groups and the public about "bad practices" by some suppliers.

"We are also seeing troubling signs that some companies are reacting to these changes by allowing levels of customer service to deteriorate," he wrote in a blog post on Ofgem's website.

He added that they were also concerned about "the way some vulnerable customers are being treated when they fall into difficulties".

[grupo] 17/4/2022 10:54

Simplification drive

Centrica has attempted to simply its business model in recent years, but it remains a convoluted entity. It still has operations in oil and gas production despite attempting to focus on its core energy supply business. Simplifying Centrica’s operations could continue for some time and may end up weighing on the firm’s share price.

Uncertainty in energy supply

Centrica is looking to focus on its core energy supply business, but it’s not the most straightforward industry right now. With energy prices soaring and the introduction of cost caps, this might not be the most profitable sector for Centrica. In fact, many homes are simply opting for the cheapest tariff available due to the soaring prices. I also think household energy usage might be more elastic than some people think. Personally, I haven’t turned the heating on for weeks — according to meditation guru Wim Hof, being cold is good for me.

Furthermore, it’s entirely possible that the cost of living crisis, which includes soaring energy prices, may see the number of bad debts rise among the firm’s household and business customers.

Competitive marketplace

Energy is a competitive marketplace and amid soaring prices, it’s likely that customers will be hunting around for the best deal. That’s fine if a company has the best price and product, but not great if it hasn’t. Centrica has picked up new customers from ailing firms that went bust, but the company also saw energy supply customers fall in the first half of 2021. This was also seen in the energy services segment — the part of the brand that deals with boiler repairs among other things.

No dividend

In 2021, the group recorded an adjusted operating profit increase of 112% from £447m to £948m. While this is very positive growth, even if 2020 was an usual year for many companies, Centrica management is seemingly concerned about future growth. Despite the surge in profit, the board held off declaring a dividend for the period. I think this is indicative of the concerns the board has in the near term amid current energy price volatility.

Not for me

Centrica is definitely in an improved position after its bumper 2021, but I foresee some challenges ahead for this company and it may be a while before it returns a dividend to shareholders. I won’t be adding it to my portfolio any time soon.

[grupo] 17/4/2022 10:53

Simplification drive

Centrica has attempted to simply its business model in recent years, but it remains a convoluted entity. It still has operations in oil and gas production despite attempting to focus on its core energy supply business. Simplifying Centrica’s operations could continue for some time and may end up weighing on the firm’s share price.

Uncertainty in energy supply

Centrica is looking to focus on its core energy supply business, but it’s not the most straightforward industry right now. With energy prices soaring and the introduction of cost caps, this might not be the most profitable sector for Centrica. In fact, many homes are simply opting for the cheapest tariff available due to the soaring prices. I also think household energy usage might be more elastic than some people think. Personally, I haven’t turned the heating on for weeks — according to meditation guru Wim Hof, being cold is good for me.

Furthermore, it’s entirely possible that the cost of living crisis, which includes soaring energy prices, may see the number of bad debts rise among the firm’s household and business customers.

Competitive marketplace

Energy is a competitive marketplace and amid soaring prices, it’s likely that customers will be hunting around for the best deal. That’s fine if a company has the best price and product, but not great if it hasn’t. Centrica has picked up new customers from ailing firms that went bust, but the company also saw energy supply customers fall in the first half of 2021. This was also seen in the energy services segment — the part of the brand that deals with boiler repairs among other things.

No dividend

In 2021, the group recorded an adjusted operating profit increase of 112% from £447m to £948m. While this is very positive growth, even if 2020 was an usual year for many companies, Centrica management is seemingly concerned about future growth. Despite the surge in profit, the board held off declaring a dividend for the period. I think this is indicative of the concerns the board has in the near term amid current energy price volatility.

Not for me

Centrica is definitely in an improved position after its bumper 2021, but I foresee some challenges ahead for this company and it may be a while before it returns a dividend to shareholders. I won’t be adding it to my portfolio any time soon.

[norma_noog] 14/4/2022 17:26

Superb end to the week. CNA closing share price 78.62, down 0.92, minus 1.2%. And Saga up again. Superb🚗.

[norma_stitts] 14/4/2022 14:11

It may help if the author of that knew the difference between a smart meter and an energy usage monitor. Lazy journalism.

[disc0dave45] 14/4/2022 13:36

Not always the best source but he has touched on a few red flags that IMO hold true and ultimately says it's not for him:HTTPS://www.fool.co.uk/2022/04/13/centrica-shares-are-up-37-on-the-year-are-they-still-undervalued/

[disc0dave45] 14/4/2022 09:23

There's the 78, looks like 75 (or lower) is next.Lovely day for surfing those waves again :)

[norma_noog] 13/4/2022 18:59

CNA closing share price 79.54, down 0.16, minus 0.2%. Superb😂

[disc0dave45] 13/4/2022 10:47

HTTPS://www.manchestereveningnews.co.uk/news/cost-of-living/worked-home-day-how-much-23619757

[skinny] 13/4/2022 10:42

Barclays Overweight 80.46p 0.00p 112.00p Reiteration

[glenngladssilver] 13/4/2022 06:23

With potential bad debts and unpaid bills already accumulating, a poor income stream going forward, a high PE, no near-term dividend payments and very high costs to keep the business running, the future doesn't look too 'bright'. Sell/avoid. Ciao.

[discohenrypeaky] 12/4/2022 22:09

Diohohku, Fant1 has gone a bit quiet, don't you think?

[norma_noog] 12/4/2022 17:30

Superb start to the week. CNA closing share price 79.70, down 1.00, minus 1.24%. I wonder what purchase makes of it?😂

[disc0dave45] 12/4/2022 16:43

SMA50 is now 78, looks like it's heading back there....or 75.Still massively overvalued and st some point the market will readjust, all IMO and newbies DYOR.

[waldron] 12/4/2022 15:17

altenergymag

Centrica signs development deal for pipeline of grid-scale solar energy projects with Push Energy

Visit for further information

Centrica Business Solutions has signed a framework agreement with renewable energy developer Push Energy, to build a pipeline of solar farm projects in the UK.
04/11/22, 03:43 PM | Solar & Wind, Energy Storage & Grids | Centrica Business Solutions

It forms part of Centrica Energy Assets' ambitions to deliver 900MW of solar and battery storage by 2026.




Push Energy is renowned for its ability to develop, construct and operate high quality renewable energy assets, and has delivered 350MW of energy projects across grid-scale and roof top solar.

Centrica Energy Assets, a team established by Centrica Business Solutions to develop large scale, grid-connected solar and battery storage assets in the UK and Europe, will work with Push to take projects from site identification to commercial operation.

In addition, Centrica will use Push as a turnkey engineering, procurement, and construction (EPC) provider to build solar projects that are developed through a framework agreement between Centrica Energy Assets and Push.

Bill Rees, Director of Centrica Energy Assets, said, "This is an important relationship and a big step towards our aim to develop, build, manage and optimise a 900MW portfolio of Centrica-owned solar and battery projects, that will help provide our customers with clean energy."

Amit Oza, Chief Commercial officer of Push said, "Push is committed to helping the UK reach net zero by 2050, by developing and constructing sustainable solar farms that give back to the local community. Working with Centrica is an excellent opportunity which will help us accelerate this process."

Centrica has committed to reach Net Zero by 2045 and for its customers by 2050. Reducing the carbon content of the company's energy supply by supporting the expansion and take-up of clean energy is core to achieving Net Zero.

[silverstone_2] 11/4/2022 22:10

The questions I have is how the company will address the rather large pension deficit, how it will increase income going forward and when the next dividend will be paid? There will surely have to be a rights issue. If things get really bad, nationalisation is not out of the question. I've taken my profit from 51p and will not reinvest until these matters are addressed.

[discojulian45] 11/4/2022 18:46

'Well done Centrica'(pmsl). This was trading at over £2 5 years ago and Purchaseatthebottom1 bought near the top! Big mistake and CNA is clearly overvalued now. Stay clear.

[norma_noog] 11/4/2022 18:26

CNA closing share price 80.70, down 0.32, minus 0.39%. It's been an awful 5 years for Centrica, as diohohku160 knows so well. So glad I didn't buy at 160, that's a 50% loss. Ouch!!! Silly sausage!😂

[norma_noog] 11/4/2022 18:25

CNA closing share price 80.70, down 0.32, minus 0.39%. It's been an awful 5 years for Centrica, as diohohku160 knows so well. So glad I didn't buy at 160, that's a 50% loss. Ouch!!! Silly sausage!😂

[disc0dave45] 11/4/2022 12:05

Current PE over 20x, forward PE over 40x, massively overvalued and value will out in the end! Back to SMA50 or not?Lovely weather for surfing :)

[diohohku] 11/4/2022 10:05

Well done Centrica, share price up 140% over the last 2 years. It's good to see we are still on the rise!

[disc0dave45] 11/4/2022 08:50

HTTPS://www.examinerlive.co.uk/news/uk-world-news/big-power-switch-uk-april-23652500.amp

[disc0dave45] 10/4/2022 10:13

Nothing wrong with smart meters, when they work (see the article), it's a personal choice that's my point and not mandatory even if BG try to make out it is.Just set your own payments anyway, it's not rocket science, BG's estimations will always be higher, they need good payers to compensate for bad debt.

[4spiel] 09/4/2022 21:19

Well what is wrong with a smart meter? If you suddenly use more they could up your monthly payments but if you just send them a payment for the extra use they cannot do anything in the short term unless it becomes regular.