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| Version 1 | Version 2 |
|---|---|
| Profits decline at British Gas | Profits decline at British Gas |
| (about 1 hour later) | |
| British Gas made a profit of £379m in 2008, down 34% on the previous year, according to its owner Centrica. | British Gas made a profit of £379m in 2008, down 34% on the previous year, according to its owner Centrica. |
| The decline in profit was due to the rise in the price of wholesale gas last year, the company said. | The decline in profit was due to the rise in the price of wholesale gas last year, the company said. |
| British Gas, which trades as Scottish Gas in Scotland, raised its gas prices by a record 35% in 2008. | British Gas, which trades as Scottish Gas in Scotland, raised its gas prices by a record 35% in 2008. |
| Earlier this month, British Gas cut its standard tariff gas prices by 10%, a move the firm said would cut £84 from the average annual gas bill. | Earlier this month, British Gas cut its standard tariff gas prices by 10%, a move the firm said would cut £84 from the average annual gas bill. |
| Centrica said it made a total operating profit of £1.94bn in the year to 31 December - down 0.4% on the previous year - across its businesses, but a tax increase meant it paid out about £1bn. | Centrica said it made a total operating profit of £1.94bn in the year to 31 December - down 0.4% on the previous year - across its businesses, but a tax increase meant it paid out about £1bn. |
| Job vow | Job vow |
| "Whilst the overall economic climate in 2009 is clearly very challenging, the operational and structural progress we have made over the last two years has strengthened the group and positioned us well to continue to invest for our customers and our shareholders," said Centrica chief executive Sam Laidlaw. | "Whilst the overall economic climate in 2009 is clearly very challenging, the operational and structural progress we have made over the last two years has strengthened the group and positioned us well to continue to invest for our customers and our shareholders," said Centrica chief executive Sam Laidlaw. |
| With the recession biting and wholesale prices continuing to tumble the public will soon be looking for more [price cuts] Mark Todd, Energyhelpline | |
| This investment would include the creation of 1,500 new engineering and "green" jobs in the UK, in areas such as energy efficiency and wind farms. | This investment would include the creation of 1,500 new engineering and "green" jobs in the UK, in areas such as energy efficiency and wind farms. |
| He said Centrica was also putting £1bn towards a new gas storage project. | He said Centrica was also putting £1bn towards a new gas storage project. |
| Wholesale price fluctuations meant that British Gas made some significant changes to prices for domestic customers in the last year. | Wholesale price fluctuations meant that British Gas made some significant changes to prices for domestic customers in the last year. |
| Figures from watchdog Consumer Focus showed that the typical annual gas bill for a customer paying quarterly by cash or cheque stood at £568 at the start of 2008. | Figures from watchdog Consumer Focus showed that the typical annual gas bill for a customer paying quarterly by cash or cheque stood at £568 at the start of 2008. |
| This had risen to £882 by January 2009, but dropped again to £794 when the latest price cut came into effect on 19 February. | This had risen to £882 by January 2009, but dropped again to £794 when the latest price cut came into effect on 19 February. |
| More cuts? | More cuts? |
| Mr Laidlaw told the BBC that if wholesale prices continued to fall, they might be able to do more to cut domestic bills. | Mr Laidlaw told the BBC that if wholesale prices continued to fall, they might be able to do more to cut domestic bills. |
| "However, it is too early to tell," he said. | "However, it is too early to tell," he said. |
| "This is tough times and we continue to do more than other suppliers." | "This is tough times and we continue to do more than other suppliers." |
| Price cuts from three of the other "big six" UK energy companies come into effect at the end of March. | Price cuts from three of the other "big six" UK energy companies come into effect at the end of March. |
| Scottish & Southern will cut the price of electricity by 9% and gas by 4% from 30 March. | Scottish & Southern will cut the price of electricity by 9% and gas by 4% from 30 March. |
| EDF Energy has announced it is cutting electricity bills by an average of 8.8%, and E.On has announced a 9% cut. However, both their gas tariffs will remain unchanged. | EDF Energy has announced it is cutting electricity bills by an average of 8.8%, and E.On has announced a 9% cut. However, both their gas tariffs will remain unchanged. |
| Mr Laidlaw said that British Gas profits equated to £1.40 per customer per month and more investment was needed as the UK continued to import more gas. | Mr Laidlaw said that British Gas profits equated to £1.40 per customer per month and more investment was needed as the UK continued to import more gas. |
| Ann Robinson, director of consumer policy at price comparison website uSwitch.com, said that price cuts were "highly likely" later in the year although they would not be very large. | |
| And Mark Todd, director of Energyhelpline, said: "If British Gas continues to lead the way with price cuts then most of the public will stay onside. | |
| "With the recession biting and wholesale prices continuing to tumble the public will soon be looking for more." |