E.ON Facing Mounting Debts

6 September 2009 (Last Updated September 6th, 2009 18:30)

German giant E.ON is facing bad debts as it awaits payments from industrial customers unable to pay gas and power bills, it has been revealed. The utility has stated that its debts, which amount to hundreds of millions of pounds, must be considered by power regulator Ofgem during its cu

German giant E.ON is facing bad debts as it awaits payments from industrial customers unable to pay gas and power bills, it has been revealed.

The utility has stated that its debts, which amount to hundreds of millions of pounds, must be considered by power regulator Ofgem during its current investigation into energy retail pricing by utilities.

According to E.ON it has not registered a profit in the British retail market since 2006. The company also said it does not expect to make any profit this year due to payments being expected by industry clients.

The company intends to invest £1bn every year over the next few years.

In August, German utility RWE in said its UK retail unit was negatively impacted by payment problems while profits were reduced due to bad debts and social obligation costs.