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British Gas profits hit by warmer weather | British Gas profits hit by warmer weather |
(35 minutes later) | |
British Gas has reported a sharp drop in profits for the first half of the year due to warmer weather. | British Gas has reported a sharp drop in profits for the first half of the year due to warmer weather. |
Residential supply fell by a quarter to £265m, owner Centrica said. Operating profit at the parent company was down 35% at £1.03bn. | Residential supply fell by a quarter to £265m, owner Centrica said. Operating profit at the parent company was down 35% at £1.03bn. |
Centrica said the average annual British Gas customer bill would be £90 lower this year than in 2013. | Centrica said the average annual British Gas customer bill would be £90 lower this year than in 2013. |
Earlier, regulator Ofgem said the big six energy firms were set to double profit margins over the next year. | Earlier, regulator Ofgem said the big six energy firms were set to double profit margins over the next year. |
The industry accused Ofgem of using inaccurate figures. | The industry accused Ofgem of using inaccurate figures. |
Profit margins | |
The predicted fall in bills this year is due to warmer weather and energy efficiencies, Centrica said, rather than to any fall in residential energy prices. | |
It added that post-tax profit margins would be about 4%, lower than last year and below the 4.5%-5% the company says it needs to achieve in order to make necessary investments in the business. | |
Centrica said the number of British Gas residential customer accounts fell by about 1% in the first three months of the year before stabilising in the second quarter. | |
"The first half of the year has seen challenging market conditions across the Group, both as a result of the weather and reflecting the wider political environment," said Centrica chairman Rich Haythornthwaite. |