30/07/2008

Energy Firm Reports Massive Profits

British Gas has announced that soaring wholesale energy prices have forced it to increase tariffs for domestic gas and electricity, despite its parent group Centrica reporting a massive £992 million profit to 30 June.

Although it is a 19% drop on last year, British Gas is blaming wholesale gas prices increasing by 89% on the previous winter. Wholesale electricity prices have also increased by 72% over the same period.

British Gas Managing Director, Phil Bentley, said: "We very much regret that we have had to make this decision at a time when many household budgets are already under pressure. The simple fact though, is that we have entered an era of unprecedented high world energy prices. The only answer to cope with higher energy prices, I'm afraid, is for all of us to be more energy efficient and we will be contacting all our British Gas customers to show how they can save energy to try and offset these price rises."

The retail price increases, averaging 25% or 72p per day for a dual fuel customer, will come in with immediate effect.

Commenting on the results Chief Executive of Centrica, Simon Laidlaw said: "We produced a good set of results in tough market conditions and against a record first half in 2007. Through the rest of 2008 and beyond we will continue to concentrate on improving customer service in British Gas, driving inefficiencies out of our entire business, moving in a disciplined manner towards a greater level of vertical integration and pursuing value-adding growth opportunities in all of our businesses."

(CD/JM)

Related UK National News Stories
Click here for the latest headlines.

31 July 2008
Centrica Posts £1 Million In Profits - To Consumers Anger
British Gas owner Centrica has posted half-year profits of almost £1 billion - much to the anger of consumer groups. Centrica maintain that it has been "absolutely necessary" to raise household gas prices as profits were down 20% in the first six months of this year to £992 million - down from £1.23 billion in 2007.
09 September 2005
Gas and electricity prices to rise by over 14%
British Gas prices are set to rise by 14.2% for residential customers later in September. The company blamed the increase on soaring oil and gas prices. The rise follows on recent similar price hikes by Powergen and EDF Energy. The company said that the 14.
04 February 2010
Energy Supplier Slashes Gas Price
British Gas has today cut its standard gas prices by an average 7%. The price cut, which will benefit 8 million households, takes effect immediately and makes British Gas, on average, the cheapest supplier of standard gas and electricity right across Britain - no matter which way customers choose to pay.
24 June 2005
Gas prices could rise again
British Gas has warned customers that gas prices could be increased again. Centrica, which owns British Gas, said that the price rises were being introduced because of expectations of an increase in wholesale prices. The price rises would follow a 12.4% increase in September last year and a further rise of 5.9% in January.
12 October 2012
British Gas Price Rise
British Gas is to hike its domestic gas and electricity prices by an average of 6% on 16 November 2012. As a result, annual dual fuel bills for British Gas customers with average consumption will increase by around £80. British Gas knows that this £1.