Telecom Plus Plc updated existing long-term energy supply contract with E.ON to ensure the sustainability of the agreement over the remaining 10 year term (until December 2033). This agreement underpins ability to deliver comfortable double-digit customer growth over the medium term by focusing on unique multi-service proposition, route to market and customer management expertise. E.ON remains responsible for wholesale energy market activities, weather-related balancing costs and seasonal working capital movements associated with growing energy customer base.

The agreement has been refined so that the amount they pay to E.ON for the wholesale services it provides is more closely matched to the wholesale cost components in the price cap (rather than using a proxy percentage of the total price cap). This improved approach is more accurate, reducing risk for both parties, and means both parties now benefit from the full price cap allowances which relate to the activities for which they are each responsible (e.g. customer bad debts in the case of UW). Importantly, the updated supply contract provides them with greater flexibility, enabling them to develop and launch a wider range of energy products - for example a broader set of attractively priced fixed tariffs to both the residential and small business markets.

The amended contract also provides a framework for UW to develop innovative 'time of use' tariffs (suitable for EV charging and home generation & storage). Looking ahead, it is clear there will be significant opportunities as the energy retail market evolves and continues its transition towards net zero. The updated energy supply agreement will provide the capabilities and flexibility required to take full advantage of these over time, and they therefore anticipate modestly increasing investment in the proposition from FY26 to further accelerate customer growth trajectory.