British Gas announced profits of £571 million today, a five fold increase on last years figure of £95 million.
Homeowners and Consumer groups are furious with British Gas, with the news coming only weeks after the company raised bills by 15% for 13 million customers.
The profits came after a year which saw the wholesale price of gas fall between January and March - but no cut in household bills as a result. Consumer groups today accused the utility firm of ripping off the public. The average household now pays £1000 per year for its gas.
British Gas agreed that wholesale prices had fallen in the early part of the year but from the summer onwards prices have nearly doubled, it had been a ‘year of two halves’ as a result.
‘Sharp falls in the price of gas in winter 2006 led to unexpected profits in British Gas early in 2007, but rising costs later in the year also mean that analysts expect margins in the second half to be very thin.’
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