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| Version 3 | Version 4 |
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| British Gas profits jump to £571m | British Gas profits jump to £571m |
| (10 minutes later) | |
| Energy supplier British Gas has reported annual profits of £571m at its residential arm, up from £95m in 2006. | Energy supplier British Gas has reported annual profits of £571m at its residential arm, up from £95m in 2006. |
| The news came as Centrica, British Gas' parent company, reported a 40% rise in operating profits to £1.95bn. | |
| Last month, British Gas said it would raise the amount it charges for gas and electricity by 15%, a move criticised by consumer groups and the Unite union. | Last month, British Gas said it would raise the amount it charges for gas and electricity by 15%, a move criticised by consumer groups and the Unite union. |
| The announcement followed increases from rivals Npower and EDF Energy, who blamed rising wholesale costs. | The announcement followed increases from rivals Npower and EDF Energy, who blamed rising wholesale costs. |
| Rising prices | Rising prices |
| Centrica said pre-tax profits from continuing operations were £2.1bn. | |
| Chairman Roger Carr said: "Centrica delivered very strong financial results during another challenging year for UK energy retailers." | Chairman Roger Carr said: "Centrica delivered very strong financial results during another challenging year for UK energy retailers." |
| Consumers will feel justified in claiming that they are being taken for a very rough ride by energy companies Adam Scorer, Energywatch | Consumers will feel justified in claiming that they are being taken for a very rough ride by energy companies Adam Scorer, Energywatch |
| The company said it had worked "diligently" to minimise the impact of rising wholesale energy prices in the latter part of 2007. | The company said it had worked "diligently" to minimise the impact of rising wholesale energy prices in the latter part of 2007. |
| Centrica said two-thirds of the group's earnings were made in the first half of 2007, when wholesale gas prices were falling. | Centrica said two-thirds of the group's earnings were made in the first half of 2007, when wholesale gas prices were falling. |
| British Gas did reduce customers' bills in March and April 2007, but consumer group Energywatch says energy companies did not pass on the full reduction to householders. | British Gas did reduce customers' bills in March and April 2007, but consumer group Energywatch says energy companies did not pass on the full reduction to householders. |
| It has called for a Competition Commission investigation into the way the energy market works. | It has called for a Competition Commission investigation into the way the energy market works. |
| "Consumers will be shocked at this massive increase in profits," said Tim Wolfenden from price comparison service Uswitch. | "Consumers will be shocked at this massive increase in profits," said Tim Wolfenden from price comparison service Uswitch. |
| "They will be extremely disappointed and will start voting with their feet." | "They will be extremely disappointed and will start voting with their feet." |
| In a BBC interview, Centrica chief executive Sam Laidlaw said the company would use the profits to reduce the UK's growing reliance on imported gas. | In a BBC interview, Centrica chief executive Sam Laidlaw said the company would use the profits to reduce the UK's growing reliance on imported gas. |
| "We need to earn a return to invest in new sources of energy for the UK. Centrica is investing £1bn a year in new sources of gas and power... and all of that requires a return," Mr Laidlaw said. | "We need to earn a return to invest in new sources of energy for the UK. Centrica is investing £1bn a year in new sources of gas and power... and all of that requires a return," Mr Laidlaw said. |
| Dividend up | Dividend up |
| Centrica has increased its full-year dividend to shareholders by 17% to 13 pence a share, a move criticised by consumer group Energywatch. | Centrica has increased its full-year dividend to shareholders by 17% to 13 pence a share, a move criticised by consumer group Energywatch. |
| "It is perfectly true that there is volatility in wholesale energy markets. But it seems equally true that such volatility hits consumers not shareholders," said Adam Scorer, Energywatch's director of campaigns. | "It is perfectly true that there is volatility in wholesale energy markets. But it seems equally true that such volatility hits consumers not shareholders," said Adam Scorer, Energywatch's director of campaigns. |
| "Consumers will feel justified in claiming that they are being taken for a very rough ride by energy companies," he added. | "Consumers will feel justified in claiming that they are being taken for a very rough ride by energy companies," he added. |
| Centrica said customer service at British Gas had "significantly improved", with 200,000 customers returning in the second half of last year. | Centrica said customer service at British Gas had "significantly improved", with 200,000 customers returning in the second half of last year. |
| Overall, the number of gas customers fell in 2007 by 2.4% to just over 10 million, while the numbers of electricity customers rose by 4.5% to just over six million. | Overall, the number of gas customers fell in 2007 by 2.4% to just over 10 million, while the numbers of electricity customers rose by 4.5% to just over six million. |