Financial Reports

At Champion Energy, we embrace transparency and accountability. As part of this commitment, we are publishing our Consolidated Segmental Statement, a comprehensive financial report that details the performance of various segments within our company covering the period November 2022 to October 2023.

This statement breaks down revenue, expenses, and profitability, providing clear insights into our overall financial position. By sharing this information, we aim to build trust with our stakeholders, promote accountability, and support informed decision-making.

	Unit	Business Electricity Supply
		FY2023
Total revenue	£M	2.2
Revenue from sale of electricity	£M	2.2
Other revenues	£M	0.0
Total operating costs	£M	2.0
Direct fuel costs	£M	1.0
Direct costs:
Transportation costs	£M	0.2
Environmental and social obligations	£M	0.1
Other direct costs	£M	0.2
Indirect costs	£M	0.5
EBITDA	£M	0.2
Depreciation & amortisation	£M	0.0
EBIT	£M	0.2
Volumes	TWh	0.0
WACO E/G	£/MWh	178.5
Meter Points	000s	0.0

All figured are rounded to one decimal place

Supporting Commentary

The following comments refer to the Consolidated Segmental Statement (CSS) covering the period November 2022 to October 2023.

Introduction

This supporting commentary accompanies the Consolidated Segmental Statement (CSS) submitted to Ofgem based on the financial data taken from financial information covering the period November 2022 to October 2023 included in the statutory accounts. This CSS has been produced in line with our unaudited accounts following UK GAAP – there are no items to reconcile.

Farringdon Energy Limited, trading as Champion Energy, is a licensed electricity supplier focused on the non-domestic market segment in the UK. The CSS and this commentary have been prepared in accordance with Ofgem’s “Consolidated Segmental Statements Guidance” (March 2024).

Champion Energy does not own or operate any generation assets and is not involved in vertically integrated energy operations. All revenue is derived from electricity supply to non-domestic customers only.

This statement has been prepared to comply with the requirements of Ofgem's Standard Licence Condition 19A of the Gas and Electricity Supply Licenses. The financial results have been included for all UK activities which require a supply licence.

Notes

• WACOE is reported to the nearest pence in E/MWh - WACOE E/G means direct fuel costs divided by Volume, shown as E/MWh or p/th
• Volumes for electricity are reported to one decimal place in TWh
• All revenue and costs are entered as positive values.
• EBITDA represents earnings before interest, tax, depreciation and amortisation. It is calculated by subtracting total operating costs from total revenue.
• EBIT represents earnings before interest and tax and is calculated by subtracting depreciation and amortisation from EBITDA.
• EBIT Margin as a percentage is calculated by dividing EBIT by total revenue and multiplying by 100.
• Meter points are based month end numbers of Meter Point Administration numbers for electricity and are shown in 000s and are reported to one decimal point.

Basis of Preparation

This statement has been prepared in accordance with SLC19A of the Electricity supply Licence.

Revenues and Costs

Revenue costs and profits of Farringdon Energy have been defined below:

Revenues

• Non-domestic revenue from sales of electricity is defined as the amount of electricity supplied during the year to non-domestic customers.
• Revenue is subject to a degree of estimation for units supplied between the date of a customer's last meter reading to year end - this estimate is based on external data supplied by the electricity settlement process and internal data where settlement data is not available.
• Initial payments of the EBRS scheme were included into revenues for 2023
• All income from non-domestic customers for the supply of electricity is net of VAT
• Revenues are reduced by broker's costs and sales commissions as they are considered direct selling costs
• Other revenues included small amounts of paid interest

Direct Fuel Costs

• Electricity wholesale costs, including any balancing charges, settlement costs including Elexon costs
• Non-domestic fixed prices are hedged based on anticipated demand for the duration of the contract
• The Licensee - Farringdon Energy Limited bears the volume risk should actual consumption differ from the anticipated volume used to price the contract.

Environmental & Social Obligation Costs

Includes pass-through costs such as RO, FiT, CfD and Climate Change Levy (CCL).

Transportation Costs

• Electricity transmission and distribution network charges
• No cost allocations are done as Champion Energy focuses on one segment / channel of non domestic customers.

Other Direct Costs

Data services and metering costs are included and other direct costs for other operational service providers associated

Indirect Costs

Overheads not directly attributable to a single meter point or unit of electricity. Includes staffing, IT, billing, customer service, marketing, and general admin, consultancy/advisory and legal services.

Hedging Disclosures (Sections 1.24–1.26)

• Products Used: Farringdon Energy did not use financial hedging instruments (e.g. forwards, options, CFDs) during the period. Energy was procured via fixed-price wholesale contracts from third-party trading partners.
• Duration: Where applicable, fixed-price contracts were typically secured on a short- to medium-term basis (ranging from 1 to 3 months), aligned with contracted customer demand.
• Cost Allocation: As Champion Energy operates solely as a supplier with no generation activity, there is no allocation of hedging costs between segments. All costs are fully allocated to the supply segment.

Conclusion

Champion Energy remains focused on providing energy services to UK businesses with simplicity, transparency, and cost control. The CSS and this supporting commentary have been prepared in good faith in line with Ofgem’s published guidance.