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British Gas sees profits rise for first half of year

August 16, 2012 at 10:14 am

British Gas recently announced that it had seen a large jump in profits. With energy prices a lot higher than they were 18 months ago, there are now calls for the company to reduce its bills so that hard-pressed customers do not suffer another long, cold winter.

British Gas saw a 23% rise in profits, up to £345 million, for the first six months of 2012. This is despite the fact that it increased its bills in December 2010 and again in August 2011. Even though bills went down slightly in January 2012, they are still a lot higher for the energy giant’s 15.8 million customers than they were a couple of years ago.

Fuel poverty is becoming an increasing problem in the UK as more households become less able to afford their heating. A household is said to be in fuel poverty when it spends 10% of its disposable income on heating, and currently about one-in-five households are in this situation.

The profit rises were criticised by the shadow energy secretary, Caroline Flint, who said that customers will not understand why they are having to pay so much when the company is making such a large profit.

However, the chief executive of Centrica, Sam Laidlaw, said that the profit was a “reasonable level”.

If it is still too high for you then you might want to consider switching providers. You can do this by visiting a comparison site to see if you can find a better deal.

Alternatively, consider reducing your bills by turning off your heating when you are out of the home or turning down the thermostat by even one degree which can cut bills significantly over the course of a year.

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One response to “British Gas sees profits rise for first half of year”

  1. Harry says:

    I think people are quite within their rights to question why their bills are rising when profits are doing the same thing. Surely the increase in prices is what is ultimately funding the profit increase?

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