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News

British Gas likely to keep increasing prices.

We've all seen the news this morning regarding British Gas's incredible profits rise - 11% year on year to £606 million. This was on the back of them increasing prices in November, when it was clear the profits were already increasing. Centrica fared even better, managing a 15 % increase to almost £2.8billion. But what's further angered the nation is their admission that there will likely be further price rises coming, following last year's 6% increase. With the icing on the 'PR disaster cake' being the reports that the huge profits will help fund the £10 million golden goodbye for the departing boss, Phil Bentley, in June.

The top five executives at Centrica will enjoy a shares bonus that is likely to top £10million. Under a long term bonus scheme, that was initiated three years ago, company bosses will receive millions of shares,  based on the company’s performance. Additionally, these shares won't be distributed until thew start of the next tax year, meaning they'll benefit from the cut in the top tax rate from 50% to 45%. The huge profits have added weight to the calls from MPs and consumer organisations for British Gas to reduce bills across the board. But the company claim that the profit hike is misleading and is really down to the increase in use over the previous year, owing to the colder weather we had last year. They've even gone to the lengths of creating the infographic (on the right) to help explain their costs, however it's likely to be wasted design time as the UK seems positively non-plussed. Despite the plaintiff cries from British Gas and Centrica,the likes of Shadow Energy Secretary Caroline Flint have waded in, pointing out that gas bills don't go down when the wholesale gas prices do. Regardless of the rights and wrongs of British Gas' pricing policy, it's good to know that using a quality energy broker ensures you get the best deal around. Contact us for an independent business energy quote.



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