Direct Energy Parent: Margins in Texas Reduced due to "Intensified" Competition

Centrica, the parent of Direct Energy, released an interim management statement yesterday which said the following regarding Direct Energy:

"In Direct Energy Residential, the number of energy accounts is down slightly since the half year, including the impact of the Bounce Energy acquisition which completed in September. We have benefitted from the full year impact of acquisitions in the US North East, but this has been offset by reduced margins in Texas as competition has intensified."

"In Direct Energy Business, power volumes were up 16% and gas volumes were up 14% in the first ten months compared to 2012, but power margins have been tighter. The acquisition of the Energy Marketing business of Hess Corporation, which completed at the start of November, substantially increases our scale and capabilities in business energy supply, and gives us a better balance between gas and power. In Direct Energy Services, we completed the acquisition of the US-based home services business America's Water Heater Rentals in October. This transaction added 80,000 customers and further expands our product range in North America."