British Gas expects energy bills to fall by £90 this year
The energy supplier’s parent company said profits from its retail branch are down 26%
British Gas estimates that household energy bills will fall by £90 (7%) this year.
The main reasons identified by the supplier for this drop are mild winter weather and its decision to freeze prices for the rest of the year.
The news follows a profit warning issued by the energy supplier in May, when it revealed it had lost 180,000 customers in the first five months of 2014.
Centrica: ‘Challenging market conditions’
Speaking on the group’s results, Centrica Chairman, Rick Haythornwaite, said: “The first half of the year has seen challenging market conditions across the group, both as a result of the weather and reflecting the wider political environment.
“We have continued our efforts to engage with our stakeholders, particularly our customers, working to restore their trust. And we are taking the steps to position the business for growth in 2015 and beyond.”
According to Centrica’s Interim Results 2014 announcement, British Gas expects to make a profit of £40 per household, or £51 before tax. This represents a drop of 20% compared to last yeat and is in stark contrast with recent declarations by Ofgem.
The energy regulator yesterday claimed that the big six energy suppliers were likely to see their per household profit margins double from £53 to £106 (pre-tax and interest) during the next year.