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| Anger over £1bn Centrica profits | Anger over £1bn Centrica profits |
| (about 1 hour later) | |
| Consumer groups have expressed anger as British Gas owner Centrica revealed £5m-per-day profits, after announcing a record price hike on Wednesday. | Consumer groups have expressed anger as British Gas owner Centrica revealed £5m-per-day profits, after announcing a record price hike on Wednesday. |
| Centrica defended the price rise, and pointed to the high wholesale gas costs that had cut its profits by 20% to £992m during the first half of 2008. | |
| Energywatch said the size of Centrica's profits and Wednesday's 35% price hike by British Gas would outrage consumers. | |
| Age Concern warned that many pensioners would be unable to pay for winter fuel. | |
| Double prices | |
| Centrica said the rise was justified and was needed to offset higher costs. British Gas said it raised gas bills by 35% to restore "reasonable profitability". | |
| HAVE YOUR SAYWhy has BG made a 35% hike in prices when they have only taken a 20% hit to profits? Mike, ChesterSend us your comments | |
| Sam Laidlaw, Centrica's chief executive, said: "This is a business that has got a million shareholders - a lot of pension funds and people have got their savings invested in British Gas shares and we have to look after them". | Sam Laidlaw, Centrica's chief executive, said: "This is a business that has got a million shareholders - a lot of pension funds and people have got their savings invested in British Gas shares and we have to look after them". |
| Phil Bentley, British Gas managing director, told the BBC: "The price of gas for this winter, even though it's fallen a little bit, it's still double what was last year." | Phil Bentley, British Gas managing director, told the BBC: "The price of gas for this winter, even though it's fallen a little bit, it's still double what was last year." |
| Centrica said the results were "good" given the tough market conditions, and said it would raise its dividend to 3.9 pence a share from 3.35p. | Centrica said the results were "good" given the tough market conditions, and said it would raise its dividend to 3.9 pence a share from 3.35p. |
| Fuel poverty | Fuel poverty |
| A committee of MPs recently warned that higher gas and electricity bills would have serious consequences for millions of households. | A committee of MPs recently warned that higher gas and electricity bills would have serious consequences for millions of households. |
| The committee was worried that the UK's energy markets were not functioning "as efficiently as they should". | The committee was worried that the UK's energy markets were not functioning "as efficiently as they should". |
| Energy companies say they can't absorb wholesale price rises, but in light of their profits this will sound hollow Patrick South,Age Concern class="" href="/1/hi/business/7533389.stm">Record rise for British Gas bills | |
| After Centrica's results, a group of council leaders said energy suppliers should be subjected to a £500m annual charge to beat fuel poverty and cut carbon emissions. | After Centrica's results, a group of council leaders said energy suppliers should be subjected to a £500m annual charge to beat fuel poverty and cut carbon emissions. |
| Paul Bettision, chairman of the Local Government Association's environment board, said: "Energy companies are making massive profits at the expense of hard working families." | Paul Bettision, chairman of the Local Government Association's environment board, said: "Energy companies are making massive profits at the expense of hard working families." |
| Centrica's move to increase prices on Wednesday came after EDF Energy raised prices last week. Analysts say other firms are likely to follow suit. | Centrica's move to increase prices on Wednesday came after EDF Energy raised prices last week. Analysts say other firms are likely to follow suit. |
| 'Staggered' | |
| Adam Scorer, Energywatch's campaigns director, said households would be "staggered" at Centrica's profits. | Adam Scorer, Energywatch's campaigns director, said households would be "staggered" at Centrica's profits. |
| He added that customers would be outraged "to learn that while they ponder how to make ends meet, Centrica's shareholders are enjoying an increase in their dividends". | He added that customers would be outraged "to learn that while they ponder how to make ends meet, Centrica's shareholders are enjoying an increase in their dividends". |
| I'm not going to play a populist card saying profits are wrong when I know that profits are needed to invest in energy in the future to keep our lights on Malcolm Wicks,Energy Minister | |
| Patrick South, Age Concern's head of public affairs, said: "Energy companies say they can't absorb wholesale price rises, but in light of their profits this will sound hollow to the one-in-three pensioners likely to be in fuel poverty this winter." | Patrick South, Age Concern's head of public affairs, said: "Energy companies say they can't absorb wholesale price rises, but in light of their profits this will sound hollow to the one-in-three pensioners likely to be in fuel poverty this winter." |
| Energy Minister Malcolm Wicks told the BBC that Centrica's results needed to be seen in context. | |
| "I know as energy minister, we need massive investment in new energy infrastructure, power stations," he said. | |
| "A new power station recently being built by British Gas is costing £500,000. | |
| "I'm not going to play a populist card saying profits are wrong when I know that profits are needed to invest in energy in the future to keep our lights on". |