Centrica reports 65% increase in profits
Centrica, the parent company of British Gas, has today reported a 65% increase in first-half profits to £1.56 billion. However, it is the near doubling of profits at the company's British Gas residential offshoot which has caused most concern within government and consumer circles. British Gas reported a profit of £585 million for the first six months of 2010 which is of a staggering 98% increase on the same period last year!
While the company maintains that the increase in profitability at British Gas is down to a mixture of old customers returning as well as a very cold winter, is this all? Heating and gas usage increased by 8% and while the company did actually reduce the cost of gas in the UK there was a major surge in demand. This comes at a time when the UK utility sector is coming under more and more pressure from the government and consumers with the general trend in energy prices still moving higher.
A near doubling of profits at the residential arm at a time when the UK economy is still struggling and many consumers are on the edge of the financial abyss is not exactly what we want to hear. This comes hot on the heels of yesterday's announcement by the government which suggests that businesses in the UK will carry the can for future investment in alternative energy sources and the commitment to reduce the UK's emissions.
Share this..
Related stories
John Lewis announces a record sale day
John Lewis has today announced record figures for the first day of their sale with turnover up 7% to a massive £21.3 million. Companies such as John Lewis and some of the larger UK retailers have grabbed the attention of UK consumers who are looking for larger discounts and better bargains. The Christmas and New Year sales appear to have merged into one with consumers more eager than ever before...
Read MoreBarclays bank pays former head £161,000 a month
Frits Seegers, the former head of Barclays retail and commercial banking operation, is in line to receive almost $250,000 a month from the company until at least the year-end 2010 even though he left the business in November 2009. He was one of the more high-profile victims of a management and structure shake up although under his contract he is entitled to the above monthly payment until at least...
Read MoreBrown announces new energy plan
A new £910 million energy plan was unveiled today by prime minister Gordon Brown.Included in the new initiatives is payments for pensioners and young families to meet costs for heating if the weather gets very cold this winter.As part of its long-standing policy of improving energy efficiency to bring bills down, home insulation installation is also to be discounted by 50 per cent.Moreover, cavit...
Read MoreBritish Gas Profits rise 14pc
British Gas has reported a rise in profits of 14pc throughout 2012. It is though the company benefited from colder weather which saw consumers use more energy, as well as significant growth in the company’s oil and power generation business. Total profits for the year stood at a massive £2.74bn, while the British Gas residential energy supply arm, which raised prices for consumers in Octobe...
Read MoreSummer vets bills could soar
Pet owners will have to spend more on vets bills during the summer than the winter, the British Small Animal Veterinary Association (BSAVA) revealed.The fact that skin problems in animals are more likely to occur during the summertime means that pet owners could have to get vaccinations for their furry friends, particularly if they plan on putting them into a cattery or kennel while they go on hol...
Read More