Direct Energy Seeing Higher C&I Margins

With competitors pricing in additional risk into C&I contracts, Direct Energy has seen a "material increase" in sold unit margins for both gas and power C&I contracts during the first half of the year, Centrica said yesterday.

Sold Direct Energy Business gross margins in the first half of 2014 increased by 35% for gas and 33% for power compared to the second half of 2013, Centrica said.

Overall, Direct Energy operating profit was 75% lower for the first half of 2014, at £41 million, versus the first half of 2013, on margin pressures on sales made during the second half of 2013, plus the previously reported $110 million negative impact of the polar vortex.

EnergyChoiceMatters.com reported yesterday that Direct's residential energy customer count grew 3% during the first half of 2014 (click here for details).

Centrica also said that it is targeting 250,000 U.S. services protection plan customers and 100,000 bundled energy and services propositions by end of 2014

Direct Energy Business electric volumes for the first half of 2014 were 49,000 GWh, and natural gas volumes were 3,200 mmth, up 75% and 546% over the year-ago period, respectively, due to the acquisition of Hess Energy Marketing.