Calls for energy bill cuts as British Gas reveals record profits

Published on Thursday 25 February 2010 21:45

CALLS mounted for widespread cuts in energy bills after record profits at British Gas were revealed yesterday, up 58 per cent on the previous year.

The UK's biggest energy supplier delivered an all-time high of 595 million in operating profits last year, up from 376m in 2008.

Wholesale gas prices have plunged, leading to accusations that energy providers have failed to pass on cuts quickly enough to struggling consumers.

Energy Secretary Ed Miliband demanded a fairer deal for energy customers.

He said: "We want to see more reductions from British Gas.

"We want to see the full benefits of cuts in wholesale prices passed on."

Philip Cullum, deputy chief executive of Consumer Focus, said consumers should see immediate price cuts from all providers.

"Energy companies have no excuses for not cutting bills for their customers. It is clear the problems in the energy market are profound and that it requires fundamental reform.

"Energy companies have taken advantage this winter, while more than six million UK households live in fuel poverty and face a desperate struggle to keep warm."

Centrica, British Gas' parent company, said it realised 2009 was a "difficult year for many of our customers".

British Gas was the first of the big six energy providers to cut prices last year and also led the way recently with a seven per cent reduction in gas bills. However, the earnings figure for British Gas was far higher than most experts were expecting.

Industry watchdog Ofgem said this week that energy firms have boosted margins by 30 for each typical dual fuel customer in the last three months as wholesale energy costs fall.

British Gas said the average dual fuel customer paid 23 more last year.