Business Performance Highlights 2019
Centrica Business has built enhanced energy and services across a range of activities, including distributed energy, route-to-market services and energy optimisation.
We have delivered cost efficiencies to position ourselves competitively, while maintaining competitive and our customer satisfaction levels have improved.
We are the largest energy supplier to SME customers in the UK and retain a significant presence in the Industrial & Commercial market, where we focus on on customers who want business services and solutions, as well as energy supply. In North America, we are the second largest supplier of gas and power to business customers and we have significant wholesale and optimisation positions. We have major global route-to-market and demand response optimisation positions, managing around 25 gigawatts of route-to-market capacity and 2.5 gigawatts of optimisation capacity across the UK, North America and Continental Europe.
Customer stability and volume growth
• UK Business delivered growth in small and medium enterprise (SME) energy supply customer accounts.
• We have refocused our sales and retention activity on higher value, higher consuming customers. Total gas volumes were up 10%, reflecting this focus and the full year impact of small bolt-on acquisitions completed during 2018.
Improving returns in North America Business
• Following a review of our business energy supply and optimisation we announced structural interventions to improve returns.
• Post-tax economic returns improved to 9% in 2019 from 6% in 2018.
• For 2020 we are targeting to achieve post-tax economic returns of 10-12%.
Growing Business solutions
• We are targeting £1 billion of revenue by 2022 and EBITDA break-even by 2021.
• Our order book has increased by 19% compared to the end of 2018 and revenue in 2019 was up 36%.
• We acquired SmartWatt in July 2019, adding significant new capabilities to our business, including energy efficiency, lighting retrofits, HVAC, building automation, and water conservation.
Expanding our global LNG footprint
We signed a landmark LNG sales and purchase arrangement in February. Tokyo Gas and Centrica will jointly purchase 2.6 million tonnes per annum until the early 2040s.
Our global total route-to-market capacity is 25.0 Gigawatt (GW), 9% higher than at the start of 2019.
Back to 2019 Annual Report