British Gas profits soar by 98%
30th July 2010
The UK's biggest energy firm has announced almost double first-half profits as a result of the soaring cost of gas and electricity during last winter's big freeze.
Centrica said British Gas's residential arm posted a surplus of £585 million - 98% ahead of last year - following the coldest winter for three decades.
Across the country, shivering families stayed indoors and turned the heating dial to maximum in a bid to keep warm - a move which saw gas usage rise 8%.
However, a gas price cut introduced in February also attracted 223,000 new customers looking for cheaper gas and electricity prices - indicating that the snow was not solely to thank for the increase in profits.
Centrica pushed up overall operating profits 65% to £1.56 billion.
Centrica said its price cuts - plus increased energy efficiency measures - meant average bills for its 16 million customers were slightly lower last winter despite the fierce cold.
Audrey Gallacher, head of energy policy at Consumer Focus, said: "Millions of customers struggled to afford high energy prices over one of the coldest winters in recent years and for British Gas and other companies the result is massive returns. Such huge supplier profits will sound alarm bells, yet again, over wholesale price cuts not being fairly passed onto consumers."
Copyright © Press Association 2010
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