EdF have posted a €3.2bn profit, and Centrica have posted a £1bn profit, RWE are next week expected to post equally high numbers and have stated that they will exceed their profit forecast. This is in a year when margins have supposedly been tight in supply as most players have increased prices to reflect the rise in wholesale prices, often on the back of either an emissions push or a fundamental fuel push. So the out out suppliers have nursed some bad numbers and the spate of small suppliers going bust is a testament to this situation. But the generation side of the business has had a boom not seen since the Pool days.

With the competition commissioner breathing down these companies throats, and with industry lobbying and with Chancellors threatening windfall taxes, one would expect the profits to be more subtle. There is no doubt that these numbers will be as low as they could possibly accountingly get away with. It may not be a bad thing to have a slight decline in prices so that the city does not think that they are on for a sure thing. There is no doubt that the fuel conversion rates (spark and dark) have increased significantly to take into account an emissions market which prices 95% of new assets at the marginal 5% cost. In due course some will look to manage this, more carefully and do not be surprised if the energy leviathans sympathies fall on the regulators deaf ears.