British Gas profits up 501%

Thursday, 21 February 2008 12:00

Profits at British rose 501 per cent last year to £571 million.

The high profit rise for the firm owned by Centrica came as British Gas increased energy prices by 15 per cent last month, following other suppliers as wholesale oil and gas prices increase.

Centrica said the high profits came from lower gas prices and operating costs in the first half of 2007 - when profits of £533 million were made.

British Gas now has ten million gas and six million electricity customers, bringing in revenue of £6.4 billion.

Centrica as a whole saw profits rise 40 per cent to £1,949 million.

Centrica chairman Roger Carr said energy price hikes were necessary to maintain profits.

He said: "Wholesale energy prices remain extremely volatile and the high gas price at the start of 2008 has squeezed retail supply margins in the UK.

"In these circumstances retail price increases have been necessary in order to restore reasonable margins. We will, however, continue to take all possible actions to minimise the impact to our customers."

Campaigners are now calling for greater regulation of the energy markets as nearly all the major gas and electricity providers have increased prices.

"Britain's domestic energy market is proof that without firm regulation, large companies exploit consumers," said Chris Gilchrist, editor-in-chief of EveryInvestor.

"Despite a torrent of customer complaints the regulator appears powerless to influence its behaviour."

He added the only way for consumers to keep their energy bills low was to chop and change between providers.

"Consumers prefer to manage their finances and major bills without hassle. But if they want to get the best deals, they now have to become full-time guerrilla shoppers engaged in continual war against the large utility and telecom companies," Mr Gilchrist said.

"It's time politicians called regulators to account for permitting this situation to develop."

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