Outrage at British Gas owner's £144m dividend

Published on Thursday 31 July 2008 22:16

THE owner of British Gas provoked fury yesterday when it announced half-year profits of £992 million – only a day after hitting millions of customers with a record increase in bills.

Parent firm Centrica announced a 144.6 million dividend pay-out for its shareholders while customers were still reeling from the news their gas bills were to jump by 35 per cent.

Adam Scorer, Energywatch campaigns director, said: "Customers will be outraged to learn that while they ponder how to make ends meet Centrica's shareholders are enjoying an increase in their dividends."

Stewart Maxwell, Holyrood communities minister, said although he refused to condemn the company for making money, the price hikes will "just make things much worse" for those already struggling with fuel poverty.

Royal Dutch Shell yesterday recorded a surplus of almost 8 billion for six months trading thanks to surging wholesale prices.

Sam Laidlaw, Centrica's chief executive, defended the dividend as a "purely mechanical" pay-out based on the company's strong performance during the previous year. He said the group had to reflect shareholder interests as well as customers'.