Consolidated Segmental Statement

Scope and Application

This Consolidated Segmental Statement (CSS) represents the gas supply activities of OSSO Energy Plc for the reporting year ended 31 December 2023. It has been prepared in accordance with Ofgem’s licence requirements and accompanying guidance to provide transparency over the profitability and cost structure of the company’s licensed supply operations.

The CSS covers only the licensed gas supply segment. The figures presented are prepared on a segmented basis, using appropriate allocation methodologies to ensure consistency with the statutory accounts where relevant.

Revenue from Sale of Gas
This includes income derived from the supply of gas to non-domestic customers under both fixed-rate and flexible commercial contracts. Revenue is recognised based on actual or estimated consumption in line with contractual terms, and reflects charges for commodity, capacity, and other applicable components as invoiced to end users.

Other Revenue
‍Includes non-commodity income such as rebates and support received from the UK Government, including energy bill relief schemes and other applicable grants or subsidies.

Direct Fuel Costs
‍Primarily includes wholesale gas purchases.

Transportation Costs
Includes the cost of delivering gas to end users.

Environmental and Social Obligations Costs
Includes costs associated with the Climate Change Levy and Green Gas Levies

Other Direct Costs
Comprises brokerage fees, market participation charges.

Indirect Costs
Indirect costs represent OSSO Energy’s internal operational expenditure not directly attributable to energy procurement or customer acquisition. This includes costs such as staff salaries, IT infrastructure and software development, office accommodation, regulatory compliance, and general administrative overheads incurred in the day-to-day running of the business.

Volumes
‍Volumes reported are actual supply volumes delivered to metered sites.

WACOG
This is calculated by dividing direct fuel costs by total volume supplied.

Meter Points
The number of non-domestic meter points represents the monthly average.

Hedging Policy
‍OSSO Energy adopts a prudent and risk-managed hedging strategy to ensure price stability and protect both the company and its customers from wholesale market volatility. Our approach aligns with our risk appetite and broader business objectives, and reflects the following core principles:

1. Volume Forecasting: Hedging volumes are based on forward-looking demand forecasts using historical consumption data, seasonality, and customer portfolio composition. Adjustments are made as new contracts are signed or exited.
2. Layered Purchasing Strategy: We follow a layered hedging approach, gradually securing positions over time to mitigate exposure to adverse market movements and reduce timing risk. This avoids concentration at any single price point.
3. Counterparty Risk: Trades are executed with approved counterparties and clearing arrangements to manage credit risk effectively. We maintain a robust credit and collateral framework to ensure ongoing liquidity and compliance.
4. Governance and Oversight: Hedging activity is overseen by a risk committee and follows an established hedging policy approved by senior management. The policy is reviewed regularly to reflect market conditions and company objectives.
5. Regulatory Alignment: Our hedging practices are consistent with Ofgem’s principles of prudent risk management. We do not undertake speculative trading, and our hedging activity is limited strictly to covering our physical supply obligations.
6. Stress Testing: Hedging scenarios are periodically stress tested to ensure resilience under extreme market conditions and to validate margining and cash flow adequacy.

Through this prudent hedging approach, OSSO Energy ensures stability of supply pricing,
protects customer value, and maintains a strong financial position in line with regulatory
expectations.

Reconciliation to Statutory Accounts
A reconciliation of the financial values reported in this Consolidated Segmental Statement (CSS) to those published in OSSO Energy PLC’s 2023 statutory accounts is provided below. This reconciliation ensures transparency and alignment between the segmented regulatory reporting and the audited financial statements submitted to Companies House.

Accounting Basis
This CSS has been prepared using IFRS.