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| Version 1 | Version 2 |
|---|---|
| Profits down at British Gas owner | Profits down at British Gas owner |
| (about 6 hours later) | |
| The owner of British Gas saw operating profits fall 5% last year despite the impact of higher fuel bills. | The owner of British Gas saw operating profits fall 5% last year despite the impact of higher fuel bills. |
| Operating profits at Centrica fell to £1.44bn following one-off costs, but profits at its British Gas residential gas arm rose by £5m to £95m. | Operating profits at Centrica fell to £1.44bn following one-off costs, but profits at its British Gas residential gas arm rose by £5m to £95m. |
| British Gas is cutting its fuel bills next month after coming under fire for seven successive rises since 2002. | British Gas is cutting its fuel bills next month after coming under fire for seven successive rises since 2002. |
| It is reducing its gas prices by 17% and electricity bills by 11% in response to lower wholesale gas costs. | It is reducing its gas prices by 17% and electricity bills by 11% in response to lower wholesale gas costs. |
| Centrica has not yet committed itself to further price cuts but said it would endeavour to "strike a balance" between lowering prices and sustaining profits. | Centrica has not yet committed itself to further price cuts but said it would endeavour to "strike a balance" between lowering prices and sustaining profits. |
| 'Difficult year' | 'Difficult year' |
| More than a million customers left British Gas in 2006 but, despite this, the firm said its residential gas business had returned to profit in the second half of the year . | More than a million customers left British Gas in 2006 but, despite this, the firm said its residential gas business had returned to profit in the second half of the year . |
| There is further work to be done to improve the British Gas service levels Sam Laidlaw, Centrica chief executive See Centrica's share price | There is further work to be done to improve the British Gas service levels Sam Laidlaw, Centrica chief executive See Centrica's share price |
| Centrica said the business had done well in a "difficult year", sending its shares up more than 4% in trading in London. | |
| "While good progress is being made there is further work to be done to improve the British Gas service levels, reduce our cost base and develop our services, energy efficiency and international businesses," said chief executive Sam Laidlaw. | "While good progress is being made there is further work to be done to improve the British Gas service levels, reduce our cost base and develop our services, energy efficiency and international businesses," said chief executive Sam Laidlaw. |
| British Gas' decision to reduce fuel bills has set the lead for the rest of the industry, with Powergen, Npower and Scottish and Southern Energy among other suppliers to have since pledged to follow suit. | British Gas' decision to reduce fuel bills has set the lead for the rest of the industry, with Powergen, Npower and Scottish and Southern Energy among other suppliers to have since pledged to follow suit. |
| Energy regulator Ofgem has warned suppliers that they must pass on the benefits of falling wholesale gas prices to customers or face penalties should they be found guilty of anti-competitive behaviour. | Energy regulator Ofgem has warned suppliers that they must pass on the benefits of falling wholesale gas prices to customers or face penalties should they be found guilty of anti-competitive behaviour. |
| But charities and consumer groups have argued that prices must come down substantially to compensate for the sharp rises of the past four years. | But charities and consumer groups have argued that prices must come down substantially to compensate for the sharp rises of the past four years. |
| 'Regret' | 'Regret' |
| Centrica's full-year results were affected by exceptional financial costs relating to the recalculation of energy contracts and the restructuring of its business. | Centrica's full-year results were affected by exceptional financial costs relating to the recalculation of energy contracts and the restructuring of its business. |
| Its total turnover, however, rose 22% to £16.5bn. | Its total turnover, however, rose 22% to £16.5bn. |
| There is a lot to be done before all vulnerable and elderly people can afford to keep themselves warm William Gillis, National Energy Action | |
| Centrica said it "regretted" the loss of British Gas customers but that it had worked hard to "minimise" the scale of the price rises following the sharp surge in gas prices in 2005. | |
| But it said the market had changed "fundamentally" in the second half of last year with new gas imports becoming available and demand easing, enabling it to reduce fuel bills. | But it said the market had changed "fundamentally" in the second half of last year with new gas imports becoming available and demand easing, enabling it to reduce fuel bills. |
| "Looking forward, it is our intention to strike a fair balance between lower prices and sustainable profits in order to reward both our customers and shareholders," said Centrica's chairman Roger Carr. | "Looking forward, it is our intention to strike a fair balance between lower prices and sustainable profits in order to reward both our customers and shareholders," said Centrica's chairman Roger Carr. |
| Consumer groups said the government and energy suppliers needed to do more to reduce fuel poverty among vulnerable groups. | |
| "We have commended British Gas on being the first to drop their prices this year but we still believe there is a lot to be done before all vulnerable and elderly people can afford to keep themselves warm," said William Gillis, chief executive of energy efficiency charity National Energy Action. |