Prices up, profits down

British Gas owner Centrica has revealed a £571m profit haul from its residential energy arm for 2013, months after hiking gas and electricity prices.

It marks a 6% drop on the £606m the year before but is unlikely to calm public anger over rising energy costs.

My word, perhaps there was some reason for the price rises other than unadulterated profiteering?

3 comments on “Prices up, profits down

  1. Also, Centrica itself showed reduced profits from increased turnover – £2.7bn from £26.6bn (10.1%), as opposed to £2.74bn from around £24bn (11.25%) last year.

    (I say “around £24bn” because I’m quoting from the BBC, and they say that this year’s £26.6bn is an 11% increase on last year so I’ve calculated from that).

    So… is 10p in the pound really profiteering?

  2. £571m profit from what? 9 million customers? Thats £63 per household in profit. Call it a fiver a month.
    If average bill is £1300 and profit is £63 on that, figure around 5% profit.
    Wow, big deal.

  3. British Gas did actually explain at the time that they were *losing* money on residential supply for several months prior to the price rise. This information was in the email message sent to customers.
    It appears the price rise was delayed because a cold start to the year resulted in British Gas making much higher sales than expected and consequently more profit than they had planned so they subsidised customers for two or three months. “unadulterated profiteering” is not actually a good long-term strategy but lefty journalists and Ed Davey do not seem to understand that

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