Household energy firms could rack up eye-watering £1.74billion in profits over next year

HOUSEHOLD energy suppliers could make £1.74 billion in profit over the next 12 months from consumer bills.

Profits have increased over the past six years as the amount suppliers can earn on average variable tax increased from £27 in spring 2017 to £130 in early 2023. It stands at £60 now. .

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The £1.74 billion projection from this Warm Winter Tariff Track does not include any profits suppliers may receive from Ofgem’s Covid and Ukraine subsidies, which recently increased profits for British Gas and Scotland Power.

Simon Francis, coordinator of the End Fuel Poverty Coalition, said: “This report reveals the murky depths of our broken energy system.

“Without fundamental grid reform and tariffs, households will continue to lose while suppliers will reap profits.”

The report also highlights unfair regional differences in energy costs.

For example, London has the lowest electricity charge of 41.9p a day, while Manweb – which includes Merseyside, North Wales and parts of Cheshire – is the highest at 65.8p. Bethan Sayed, from Climate Cymru, said: “Regional disparities in energy prices are one of the most unfair parts of the system.”

Meanwhile, the Center for Policy Studies says the energy price cap is preventing customers from accessing lower energy tariffs and should be abolished.

Energy expert Dillon Smith, of the Center for Policy Studies, said: “Utilities are actively discouraged from offering more affordable contracts to customers because of state intervention in the market. energy. The competition is almost gone.”

bear well

MOOD BEARS, a toy brand founded by women in the UK that has won backing from all five investors on TV’s Dragons’ Den is set to go global.

Toy giant TOMY has acquired worldwide rights to the production, sale and distribution of future teddy bears, which come in different colors to reflect different moods.

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Mood Bears founder Joanna Proud raised £20,000 from Deborah Meaden and her Dragons friends to buy 25% of her company earlier this year.

“Working with Tomy, our passion for ‘making the world smile’ will flourish,” she said.

Swift achieved success in July

CONSUMER spending growth eased in July as shoppers weighed in on splurging.

While spending on plastic cards grew 4% in the year to July, Barclays research said that was down from 5.4% growth the previous month.

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The bank found that nine out of ten shoppers are concerned about rising food prices, with seven out of ten looking to reduce the cost of their weekly shopping.

Still, concert ticket sales have helped drive plastic card spending — as well as expanding business in pubs and clubs.

Spending on non-essential items increased 5.6% from a year ago, with bars, pubs and clubs up 7.6%.

And the entertainment sector saw 15.8% growth, boosted by pop star Taylor Swift’s UK tour plans.

Barclays’ Esme Harwood said: “Entertainment has taken a big step forward, thanks in large part to pre-selling of Taylor Swift and Foo Fighters stadium tours.”

Company DROP 45% off

RECRUITMENT firm Page Group says profits have dropped 45% to £63m over the past six months, as workers are reluctant to accept permanent work.

“Temporary hiring outperforms permanent hiring, as customers seek more flexible options,” said CEO Nicholas Kirk.

The company’s portion of temporary employment rose 15.3%. Revenue rose 5.8 per cent to more than £1 billion in the six months to the end of June.

House prices down £1k

The average house price in the UK fell by almost £1,000 in July.

According to Halifax, a typical home currently costs £285,044, compared with a peak of £293,992 last August.

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Average prices were down 2.4% in the year to July and down 0.3% for the month.

“The housing market outlook remains tied to the performance of the broader economy,” said Halifax Mortgages director Kim Kinnaird.

“A number of factors are supporting – notably, strong wage growth at around 7% annualized.”

Despite the drop, house prices are still a fifth above their pre-Covid levels, meaning the average is still £45,000 more than four years ago.

Halifax said first-time buyer activity has increased. Some potential homebuyers are looking for smaller homes to offset higher borrowing costs.

The Bank of England raised interest rates 14 times – to 5.25% last week,

“Smaller homes in affordable locations are the biggest draw,” said Nicky Stevenson, of estate agent Fine & Country.

Real estate companies fall

Shares of property services company LSL Property Services fell 10% yesterday after issuing a profit warning.

It said the group’s annual profit would be “significantly lower” than previously forecast due to subdued activity in the mortgage market.

“Market conditions are challenging and have become more difficult recently,” said real estate agent owner Reeds Rains and surveyor E.Surv.

Analysts at Peel Hunt say the company’s full-year profit could fall to £9m – less than half of the £21m previously expected.

£11 million pension

At the request of the FOI, the UK’s largest pension fund is around £11 million.

Asset management firm RBC Brewin Dolphin says for the biggest pension an 18-year-old would have to invest £49,260 a year until 68.

The data shows 929,000 savers have a pension worth between £1m and £2m, with 46,000 in the £3m or more bracket.

“Money saved regularly over the long term can produce impressive results,” said Rob Burgeman, chief investment officer at RBC Brewin Dolphin.

WAITROSE is introducing dedicated areas for low- and non-alcoholic beverages at 253 stores. Research by beverage giant Diageo shows that sales of such drinks have grown by 20% in a year, with sales of non-alcoholic beer growing the fastest.

Allsaint pays

Coat fashion brand DA Allsaints said sales rose by a quarter in the year to the end of January to £391 million, up from £313 million the year before.

This London-based luxury brand has approximately 240 stores, franchises and dealerships globally with more than 2,000 employees. AllSaints opened its first store in mainland China in Shanghai earlier this year.

Sales are also supported by support in a digital platform.

“These results are a huge credit to our amazing team,” said boss Peter Wood.