E.ON announces company split to focus on renewable energy

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Big Six energy supplier E.ON has announced record losses last week which has led to talks of splitting off the fossil fuel business, which is slipping deeper and deeper into trouble.

The German power group claimed that this fall in revenue was a direct reflection of the poor state that both the German and British energy markets are in. E.ON’s chief financial officer Klaus Schafer commented on the figures saying:

“Considering the continued difficult market environment in many countries, we’re generally satisfied with our 2014 results.”

But, despite this optimism, Schafer did go onto admit that many separate factors, such as the price of oil and changing currency rates were all culminating into an adverse effect on the business.

In an attempt to drag the energy giant back on track, E.ON announced that it intends to split the company in two over the next six months, with E.ON focusing on renewable energy efforts, and a new rebranded division heading up the fossil fuel side of the operation.

 Experts have suggested that the planned split by E.ON is just the tip of the iceberg and as the energy market continues to change we can expect to see many more German and British suppliers follow suit.

UKPower.co.uk’s energy expert Scott Byrom had this to say:

“There is definite change in the air for the UK energy industry. Consumers are becoming more and more environmentally conscious when it comes to how and where their energy is sourced. This is certainly something that energy suppliers will need to take into consideration in the future.”

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