Energy News

British Gas profits up

Thursday, 25 February 2010

By Daniel Barnes- daniel@consumerchoices.co.uk

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More customers switching energy providers and falling wholesale prices are pushing up profits at British Gas.

British Gas has announced a 58% rise in profits from its residential business.

British Gas-owner Centrica reported a total profit of £1.86bn – down 7% - with profits from households standing at £595 million.

Demand for energy dropped as homes became more energy efficient, but the fall in wholesale energy prices bolstered British Gas’s profits, along with the recent cold weather.

Centrica chairman Roger Carr warned gas and electricity prices may rise again in 2010.

“In 2009, energy was once again never far from the headlines,” he said.

“Wholesale UK gas and electricity prices both declined sharply from the levels seen during 2008 and… the forward curve indicates that they will rise again during 2010.”

British Gas is now looking to increase the number of products available and it is pushing more bundled gas and electricity packages to customers.

Over 2009, British Gas signed up 164,000 customers to take energy and services such as boiler insurance HomeCare, so now over 2 million people now receive gas, electricity and other services from the firm.

Overall British Gas has 15.7 million customers and the firm is looking to push this further following a 7% cut to energy prices.

The firm also reported the success of EnergySmart, where customers are encouraged to text, email or call in meter readings.

British Gas claims 90% of bills are now based on actual meter readings with 75,000 submitting their usage online.