British Gas reports huge profits
February 24, 2008
Over recent weeks cash-strapped consumers in the UK have been hit even harder after the major energy suppliers in the UK decided to increase their prices on gas and electricity usage, stating that the rise was necessary because of increases in the cost of wholesale energy. Average households are now paying around £1000 a year for their energy usage, and many are in danger of being pushed into fuel poverty as a result of these price hikes. The new about rising energy costs came at around the same time as the interest rate cut in December.
However, it is not just the level of the rise that has stung customers. British Gas, owned by Centrica, was amongst the energy firms to hike up prices by a considerable amount, increasing gas and electricity costs by 15%. However, to rub salt in the wound British Gas has now announced that its profits have increased five-fold, from £95 million last year to a whopping £571 million this year. As consumers struggle to keep up with payments on their bills fat cats from the energy firms are looking forward to huge bonuses.
One campaign official stated: ‘It’s quite sickening when companies make these huge profits while, at the same time, we are expecting 25,000 excess winter deaths as a result of people not being able to keep warm.’
Another industry official commented on the level of rise in profits, stating: ‘The first half-year profit was absolutely extraordinary. The money was just flowing through the door.’
A spokesperson from watchdog Energywatch said: ‘No one is going to argue that energy companies don’t need to make a profit. However, British Gas customers will want to tear their hair out when they hear the scale of these profits and compare them with their own rising bills.’
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