British Gas profits rise sharply on higher customer prices

31/07/2009

British Gas has announced an 80 per cent rise in residential profits for January-June 2009.

The nation's biggest gas and electricity provider's owners Centrica said that net earnings had hit £299 million over the six-month period, with the firm receiving a boost through 2008's price increases.

In January-June last year, profits were just £166 million.

Reacting to movements on the wholesale markets, British Gas has since cut costs for customers by around ten per cent this year.

However, Consumer Focus expressed disappointment with the profits news.

"Millions of consumers paying high energy prices will be disappointed, but sadly unsurprised, that energy firms are making such large profits," it said in a statement.

"Any business needs to make a profit but it must also give a fair deal to its customers. Wholesale energy prices have come down and remain low, so we believe that energy firms across the board should be making significant further price cuts."

Kevin Still, EuroDebt director, added: "EuroDebt has been pro-active in advising people in financial difficulty, often with serious debt problems, to get the best possible energy tariffs that suit their preferred payment methods. Using a free comparison tool and finding the best deals possible should be a routine event.

"Profit increases of the scale announced with regard to residential customers can be very emotive and people may vote with their feet. However, it may be the case that your existing supplier may have a better tariff on offer, for example Internet tariffs with payment by direct debit. EuroDebt now offers energy switching services to not only new and existing clients on Debt Management Plans, but also all UK residents."

British Gas retains over 15 million gas and electricity customers in the UK.

Tags; Housing Debt and Bills, Retirement Money Problems, Credit Card Lifestyle,

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