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| Version 3 | Version 4 |
|---|---|
| Cost rises cut British Gas profit | Cost rises cut British Gas profit |
| (about 5 hours later) | |
| Energy group Centrica has said profits at its British Gas residential arm fell 34% last year to £379m, following a big rise in the cost of wholesale gas. | Energy group Centrica has said profits at its British Gas residential arm fell 34% last year to £379m, following a big rise in the cost of wholesale gas. |
| The fall in profit came even though British Gas, which trades as Scottish Gas in Scotland, raised its gas prices by 35% in 2008. | The fall in profit came even though British Gas, which trades as Scottish Gas in Scotland, raised its gas prices by 35% in 2008. |
| Centrica's overall operating profit was £1.94bn, down 0.4% on a year ago. | Centrica's overall operating profit was £1.94bn, down 0.4% on a year ago. |
| The firm added it would create 1,500 new jobs in the UK, in areas such as energy efficiency and wind farms. | The firm added it would create 1,500 new jobs in the UK, in areas such as energy efficiency and wind farms. |
| Parent company Centrica's Chief executive Sam Laidlaw. | Parent company Centrica's 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. | "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. |
| Centrica also announced that it was buying a majority stake in the Baird gas field in the North Sea, which is to be developed as a storage facility. | |
| The scheme will cost about £1.2bn and Centrica said it would help to tackle the lack of storage capacity in the UK. | |
| 'Tough times' | 'Tough times' |
| 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. |
| With the recession biting and wholesale prices continuing to tumble the public will soon be looking for more [price cuts] Mark Todd, Energyhelpline This had risen to £882 by January 2009, but dropped again to £794 when the latest price cut came into effect on 19 February. | With the recession biting and wholesale prices continuing to tumble the public will soon be looking for more [price cuts] Mark Todd, Energyhelpline This had risen to £882 by January 2009, but dropped again to £794 when the latest price cut came into effect on 19 February. |
| Earlier this month, British Gas cut its standard tariff gas prices by 10%. | Earlier this month, British Gas cut its standard tariff gas prices by 10%. |
| 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. | 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. | 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." | "With the recession biting and wholesale prices continuing to tumble the public will soon be looking for more." |