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British Gas reveal large profit for 2015 at £574m

The largest “Big Six” supplier has seen an increase in profit of 31%

 

British Gas profit increase

Today, British Gas has revealed its pre-tax profit for 2015, within its residential energy supply arm, rose 31% to £574m; this is compared to £439m in 2014.

British Gas will now come under more scrutiny for not passing on such a large profit to its customers in the form of savings on their bills. The combination of small cuts, falling wholesale prices, and now profit increases are likely to leave British Gas customers feeling like they’re being treated unfairly.

British Gas’ three price cuts

Despite this profit news being hard to swallow for many consumers, British Gas are able to boast the most amount of price cuts from a Big Six supplier.

Supplier Cut Date

British Gas

Gas — 5%

February 2015

British Gas

Gas — 5%

August 2015

British Gas

Gas — 5.1%

February 2016

Within this same time period, the other Big Six suppliers have only committed to two rounds of cuts to standard gas prices — some being as little as 1.3%.

CMA investigation

When the Competition and Markets Authority’s (CMA’s) delayed investigation into the energy market is released, its likely even more pressure will be put onto suppliers to make cuts to their standard prices, and not just gas. With wholesale electricity prices also continuing to fall but no cuts in sight, suppliers should have leeway to make these further price drops.

uSwitch is urging the CMA to put forward bold recommendations to get more consumers shopping around for energy to increase competition, lower prices and improve customer service.

Ann Robinson, Director of Consumer Policy at uSwitch.com, says:

“British Gas has cut standard gas prices three times in the last past year, but it should now go further and reduce electricity bills too. We are still waiting for the big six to explain why they have continued to ignore standard electricity prices in recent price cuts.

“Seeing a major supplier report increased profits at a time of sustained low wholesale prices should strengthen the Competition and Markets Authority’s determination to fix the broken energy market.

“In the meantime, consumers should check to see if they could get a better deal by switching energy tariff or supplier.”

Poll

  • Jeff Williams

    Don’t forget that British Gas pre tax profit announcements are mad AFTER their shareholders have received their payout, which is usually about the same amount as the pre tax profits. I was working for them when they announced in November 2012 that they could not afford to give their staff a pay increase, six months later the shareholders received a dividend payout well in excess of £500m, at the same time they announced profits of £567m.

  • canalboat

    I wouldn’t use British Gas for my energy if there was no one else after 2 horrendous experiences at their hands in recent years. I even dumped the AA when Centrica got tyheir hands on it

  • Susan Yonan

    Ditto the last person. Have not been with BG since the market was opened up. Have saved thousands over the years. People who don’t switch must be mad – it only takes 10 mins and is no hassle. I feel it is a very unfair system for the elderly and people who have mental health problems though – they should have special assistance to make sure they receive a good deal. We now live in a society which punishes the vulnerable.

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