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 2023 to October 2024.

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
    FY2024
Total revenue £M 4.2
Revenue from sale of electricity £M 4.2
Total operating costs £M 2.0
Direct fuel costs £M 2.0
     
Direct costs:    
Transportation costs £M 0.5
Environmental and social obligations £M 0.5
Other direct costs £M 0.5
Indirect costs £M 0.7
     
EBITDA £M 0.0
Depreciation & amortization £M 0.0
EBIT £M 0.0
     
Volumes TWh 0.0
WACO E/G £/MWh 142.14
Meter Points 000s 1.0

All figured are rounded to one decimal place

Supporting Commentary

The following comments refer to the Consolidated Segmental Statement (CSS) covering the period November 2023 to October 2024.

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 2023 to October 2024 included in the statutory accounts. This CSS has been produced in line with our unaudited accounts following UK GAAP. There is no necessary reconciliation.

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 License Condition 19A of the Gas and Electricity Supply Licenses. The financial results have been included for all UK activities which require a supply license.

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 License.

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 2024
  • 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

Direct Fuel Costs

  • Electricity wholesale costs, including any balancing charges, settlement costs including Elexon costs
  • The majority of anticipated demand was hedged for Non-domestic fixed prices 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 to hedge the vast majority of Farringdon Energy’s demand.
  • Duration: Where applicable, fixed-price contracts were typically secured on a short- to medium-term basis (ranging from 1 to 3 month periods but across the financial year), 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.

Reconciliation to Statutory Accounts

Number Item Unit Revenue EBIT
  CSS Supply Farringdon Energy Ltd £M 4.173 0.025
  Adjustments: £M    
1 Non-licensed activities £M    
2 Mark-to-market adjustments £M    
3 Restructuring costs £M    
4 Impairment charges £M    
5 Profit/(loss) on disposal £M    
  Farringdon Energy Limited Statutory Accounts £M 4.173 0.025

Farringdon Energy had no requirements to make further adjustments.

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.

Glossary of Terms

EBIDTA: Earnings before interest, tax, depreciation and amortisation

EBIT: Earnings before interest and tax

MPANS: Meter Point Administration Numbers (electricity

MPRNS: Meter Point Reference Numbers (gas)

WACOE: Weighed average cost of electricity

WACOG: Weighted average cost of gas

TWh: Terawatt hours

m Therms: Million therms

BSUoS: Balancing Service Use of System

DUoS: Distribution Use of System

TNUoS: Transmission Network Use of System

RBD: Reconciliation by Difference

This document has been prepared in accordance with standard License Condition 19A of the Gas and Electricity supply Licenses and Ofgem Guidance.