Eneco Energy Trade bv – Consolidated Segmental Statement
Year ending 31 March 2024The Consolidated Segmental Statement (CSS) report is prepared in accordance with the “Guidelines published for preparing Consolidated Segmental Statements” and is submitted by Eneco Energy Trade bv to comply with the Standard Licence Conditions 19A of the Electricity and Gas supply licences.
The CSS report is based on the internal financial statements within the Eneco Group and prepared in accordance with the International Financial Reporting Standards (IFRS). The reporting period is 1/4/23 until 31/3/24. The scope of the report is the profit and loss items within Eneco Energy Trade BV concerning the supply of electricity to consumers in the United Kingdom.
Eneco Energy Trade BV (“EET”) is wholly owned by Eneco NV. EET holds an electricity supply licence (registration no. 30167836) and EET does not hold a gas supply licence. The Company supplies electricity to commercial consumers operating in the United Kingdom and off takes electricity (plus associated ROCs, REGOs) from independent renewable producers, and our own wind and solar assets, through power purchase agreements.
This report consists of the Consolidated Segmental Statement, the basis of preparation and the hedging policy adopted by EET bv.
The CSS report is based on the internal financial statements within the Eneco Group and prepared in accordance with the International Financial Reporting Standards (IFRS). The reporting period is 1/4/23 until 31/3/24. The scope of the report is the profit and loss items within Eneco Energy Trade BV concerning the supply of electricity to consumers in the United Kingdom.
Eneco Energy Trade BV (“EET”) is wholly owned by Eneco NV. EET holds an electricity supply licence (registration no. 30167836) and EET does not hold a gas supply licence. The Company supplies electricity to commercial consumers operating in the United Kingdom and off takes electricity (plus associated ROCs, REGOs) from independent renewable producers, and our own wind and solar assets, through power purchase agreements.
This report consists of the Consolidated Segmental Statement, the basis of preparation and the hedging policy adopted by EET bv.
| Financial Year ending 31/3/24 | Unit | Electricity supply | Gas supply | ||
| Domestic | Non Domestic | Domestic | Non Domestic | ||
| Total revenue | £'M | 0.0 | 187.7 | 0.0 | 0.0 |
| Revenue from sale of electricity | £'M | 165.0 | |||
| Other revenues | £'M | 22.7 | |||
| Total operating costs | £'M | 0.0 | 187.7 | 0.0 | 0.0 |
| Direct fuel costs | £'M | 108.9 | |||
| Direct costs: | £'M | ||||
| Transportation costs | £'M | 20.5 | |||
| Environmental and social obligations costs | £'M | 53.0 | |||
| Other direct costs | £'M | 0.0 | 4.6 | 0.0 | 0.0 |
| Indirect costs | £'M | 0.0 | 0.3 | 0.0 | 0.0 |
| EBITDA | £'M | 0.0 | 0.4 | 0.0 | 0.0 |
| Depreciation and amortisation | £'M | 0.0 | |||
| EBIT | £'M | 0.0 | 0.4 | 0.0 | 0.0 |
| Volume | TWh | 0.7 | |||
| WACO E/G | £/MWh | 265.0 | |||
| Meter Points | 000s | 0.3 |
2. Basis of Preparation
RevenueSupply revenues are from the sale of electricity to non-domestic customers plus third party charges (see transportation, environmental and social obligation costs). Other Revenue represents the sale of REGO certificates, also to non-domestic customers.
Direct costs
These costs relate to the purchasing of power via power trades from the market as well as from generators under Power Purchase Agreements (PPAs). This also includes the cost of imbalance and other shape-related discounts as appropriate and the costs of working capital.
Transportation costs
These consist of DUoS, TNUoS and BSUoS and AAHEDC charges.
Environmental and social obligations costs
These costs are associated with collecting the following levies from customers in order to meet our obligations; Renewables Obligation (RO), including any stabilisation costs; Feed In Tariff (FIT) including any levelisation costs; Renewable Energy Guarantees of Origin (REGO) costs; Climate Change Levy (CCL), Contracts for Difference (CfD) and Capacity Market (CM) as issued to suppliers by Low Carbon Contracts Company (LCCC).
Other direct costs
These consist primarily of metering costs (MOPs and MAPs), costs to be paid to Elexon for running our Trading Units and Data Collection and Aggregation (DCDA).
Indirect costs include handling fees that are designed to recover some staff costs, some IT and software costs, some marketing and communications costs and some professional fees. No additional costs from within the wider Eneco organisation are included in these figures.
EBITDA/EBIT
EBITDA is earning before interest, tax, depreciation and amortisation, calculated by subtracting the total operating costs from revenue. EBIT is earnings before interest and tax, calculated by subtracting depreciation and amortisation from EBITDA but in this case there is no depreciation and amortisation. There is no depreciation because there are no physical assets on the balance sheet for the UK supply segment of EET, the costs for the use of IT infrastructure are reported as indirect costs.
Other statistics
During this period EET supplied of the order of 0.7TWh to business customers. The Weighted Average cost was approx. £265/MWh and this shows the total revenue of just over £187.7m. The total number of metering points (MPANs) was about 300.
3. Hedging Policy
The EET hedging policy is centred on the customer. All of our customers sign up to a flexible tariff meaning that the customer chooses their own moments to hedge their consumption. To this extent, EET is offering an execution-only service. Liquidity is then an issue for customers as EET will only provide process and execute when there is sufficient liquidity in the market.We do not provide price advice, customers are typically advised by a consultant or broker. EET does not fixed power price or non-commodity costs and so all costs other than hedged power is passed through to the customer ie. EET does not offer fixed price contracts to our non-domestic customers.
On the purchasing side most of our PPAs with independent generators are on a market-based (floating) basis. They are also usually short-term, <5 years.
As a trader EET is constantly monitoring its own positions and those of its customers in the market and so we are aware of any mark to market exposures on our books relating to the demand volumes of our customers. This is one risk we take and manage, the over and underconsumption of our customers.