Deloitte has picked up a second major energy audit client after its recent win at BP, and will be taking over at Centrica from PwC following the conclusion of a formal tender process, ending a 20-year relationship
In a statement Centrica said the board has approved the proposed appointment of Deloitte as the company's auditor for the financial year commencing 1 January 2017. The appointment remains subject to approval by shareholders at the annual general meeting to be held on 8 May 2017.
PwC has been Centrica’s auditor since the demerger in 1997, and in its 2015 annual report the company indicated it intended to put the audit out to tender in line with new UK and EU regulations on auditor rotation.
The statement announcing the change of auditor said: ‘The board of Centrica plc extends its appreciation to PricewaterhouseCoopers for its services as auditor and confirms that there are no matters in connection with PricewaterhouseCoopers LLP’s prospective resignation as auditor following the 2016 audit that need to be brought to the attention of shareholders.’
According to the company’s annual report, Centrica paid a total of £9m in fees to PwC in 2015, of which £6.7m related to the audit of the parent company and subsidiaries. PwC also received £2.3m for tax advisory and corporate finance services.
Earlier this week it was announced that Deloitte was replacing EY as auditors at BP, where audit fees were $41m (£33m) in 2015.
