British Gas has announced a surge in profits for the first half of 2015 from its residential energy supply arm. £528m, up from £265m last year, is the forecasted profit for the first half of 2015.
This revelation will continue the pressure on British Gas and the rest of the big six to slash prices and become more competitive, following the CMA’s provisional report published this month.
“The news that British Gas is predicting a surge in profits will be a hard pill to swallow for its customers – many of whom went cold last winter to cope with sky-high bills” says Ann Robinson, Director of Consumer Policy at uSwitch.com
British Gas however, is the only big six supplier to have dropped its prices twice since the beginning of 2015. Accumulatively, their price drops have cut an average of 6% off a customer’s annual bill (excluding fixed tariffs).
Calls for further cuts
Consumers are still holding out for EDF Energy, E.ON, npower, ScottishPower and SSE to follow British Gas’ lead and make further reductions to their prices too.
The average dual fuel energy bill is now £700 a year higher than that of 2005, yet wholesale prices have dropped to their lowest level in five years. Suppliers are constantly being called on to pass on these savings, and cut more money off their customers’ bills.
Customers are now seeing an average saving of £292 from switching to a cheaper energy supplier, larger than any cuts currently put forward by big six suppliers.