British Gas urged to freeze prices as profits rise by 3%
British Gas Residential reports 3% increase in year-on-year profits – operating profits up from £345 million for H1 last year to £356 million for H1 this year
The company says that the increased revenue from higher gas demands has been offset by rising commodity costs and network and environmental charges
British Gas hiked its gas and electricity prices last winter (16th November) by 6% or £80, taking its average dual fuel bill up from £1,260 to £1,340 a year
In its Interim Management Statement in May, British Gas said that it would use any benefit from the extended winter to maintain its price competitiveness, but stopped short of actually announcing a price freeze
With further profits announced today, Uswitch.com urges British Gas to help customers ahead of winter by announcing a price freeze for the rest of the year.
Tom Lyon, energy expert at Uswitch.com, says: “The fact that British Gas has absorbed increasing costs so far this year will be of cold comfort to consumers who may be fearing the worst – especially with rumours of price rises. Profits are up from last year, so we would urge British Gas to help quell customer’s fears and go one step further from its May pledge and commit to a price freeze for the rest of the year.
“People are already starting to worry about next winter and the cost of their energy bills and high energy prices have a big impact on consumers. Last winter, almost seven in ten households (69%) went without heating at some point to keep their energy costs down. 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.
“This is why we would urge suppliers to reduce the pressure on consumers by guaranteeing that they won’t hike prices this winter – and it would be great to see Britain’s biggest supplier, British Gas, taking the lead.
“But if consumer’s worst fears are confirmed and we see energy prices rocket again, many will fear the coming winter more than ever. Unfortunately there is little to suggest that consumers will be protected from price hikes so it’s vital that they act now to ensure that they are paying as little as possible for their energy bills. For those concerned about ever-increasing prices, a fixed price plan could offer the peace of mind that’s needed as we head into winter. And with some fixed plans costing less than standard ones consumers can not only enjoy protection from further increases but actually cut their bills.”
Source: Uswitch.com
Annual bill sizes based on a medium user profile on a standard plan. Customers using 3,300 kWh and 16,500 kWh gas, paying on receipt of bill with bill sizes averaged across all regions. *After price cut came into effect on 12th January.
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Notes to editors
Centrica announcement Wednesday 31st July, 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.
Centrica IMS issued 13th May, 2013.
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.’
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