British Gas Residential Supply reports 11% increase in year-on-year profits – operating profits up from £544 million to £606 million
British Gas hiked its gas and electricity prices this winter (16th November) by 6% or £76 taking its average dual fuel bill up from £1,260 to £1,336 a year
At the time of increasing its prices, British Gas blamed rising wholesale prices, as well as higher costs to upgrade the national grid and to deliver the Government’s policies for a clean, efficient Britain – it also warned of a further £60 to be added to bills this year
Almost seven in ten households (69%) have gone without heating at some point this winter to keep their energy costs down, while over a third of people (35%) say that cutting back on energy usage is affecting their quality of life or health
Uswitch.com is urging British Gas to help customers out by cutting its prices again.
Ann Robinson, Director of Consumer Policy at Uswitch.com, says: “Asking customers to swallow a 6% winter price hike and then unveiling a 11% increase in profits is tantamount to waving a red rag at a bull. Yes there is a huge amount of investment required to keep the lights on over the next ten years, but there has to be a balance between energy companies making healthy profits and people going cold for fear of the cost of turning their heating on. While British Gas makes a strong case about future investment, jobs and security, I suspect there will be little sympathy, especially amongst those who have shivered at home this winter.
“Almost seven in ten households (69%) have gone without heating at some point this winter to keep their energy costs down – almost two in ten (17%) are doing this regularly. At the same time, over a third of people (35%) say that cutting back on energy usage is affecting their quality of life or health. While we welcome news of job creation and the positive benefits that a company like British Gas can bring, we would also urge it to remember the impact of high prices on its customers and to bring its prices down again.
“As Britain’s biggest supplier it would be great to see British Gas take the lead. However, consumers should help themselves too. There are two steps that everyone should now take to protect themselves from the high cost of energy – use less energy by making homes more energy efficient and pay less for what you do use by moving to a more competitive plan. There is currently almost £250 difference between the cheapest and most expensive tariffs on the market – households can easily achieve a valuable saving just by moving to dual fuel, paying by direct debit and signing up to a competitively priced deal.”
Centrica announcement issued Wednesday 27th February, 2013.
Based on a medium user customer using 3,300 kWh of electricity and 16,500 kWh of gas, on a British Gas standard dual fuel plan, paying quarterly by cash or cheque with bill sizes averaged across all regions.
http://www.centrica.com/index.asp?pageid=29&newsid=2588 British Gas pricing announcement 12th October, 2012. In the section ‘Why prices are rising’ it says: “There are other costs behind energy bills, and these are also increasing. Britain’s national grid requires a major upgrade, which is being funded through energy bills, and the costs of the Government’s policies that will ensure a clean, energy-efficient Britain, are also rising. Together, these have added around £50 to the cost of supplying the average customer’s home this year, and are expected to add nearly £60 to the cost of supplying the average customer’s home next year.”
Research conducted with the Uswitch.com Consumer Opinion Panel amongst 2,099 respondents in January 2013. In response to: ‘Have you gone without heating this winter to keep your energy costs down?’ 50.6% said ‘occasionally’, 16.5% said ‘regularly’, 1.7% said ‘always’. This adds up to 68.8% who went without heating at some point this winter.
Research conducted with the Uswitch.com Consumer Opinion Panel amongst 2,099 respondents in January 2013. In response to: ‘Do you think you’re achieving the right balance this winter between keeping your home warm and managing costs?’ 34.9% said ‘No – the cutbacks I’m making are affecting my quality of life and/or health.’
Based on a medium user customer using 3,300 kWh of electricity and 16,500 kWh of gas – E.ON’s standard cash and cheque price from 18th January, 2013 is £1,370 a year on average while SSE’s Discount Energy Bonus May 2014 (with paperless billing) costs £1,134 a year on average – a saving of £236 a year.
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