Energy suppliers British Gas announce record profits - 25/02/2010

Energy suppliers
British Gas witnessed a 58 per cent rise in operational profits, it has been announced.

British Gas's parent company Centrica said the energy supplier's residential arm saw profits climb to £595 million last year from £376 million in 2008, exceeding the £573 million in profits gained in 2007.

Centrica said British Gas's profit margin was around eight per cent for 2009 and the company is aiming for seven per cent this year. The energy company is also expected to create 1,100 jobs over the course of 2010.

Roger Carr, chairman of Centrica, said: "British Gas was the first of the major suppliers to reduce prices in 2009 which, combined with reduced average consumption, provided a welcome reduction in bills."

Mark Todd, director of independent price comparison website energyhelpline, said the announcement of British Gas's profits will not be received positively by consumers.

"Many customers will find it hard to stomach this huge profit but if they believe it to be unfair, our advice is to switch," he commented. "It only takes a few minutes and the possible savings are huge."

In a bid to persuade consumers to switch gas providers, British Gas recently announced immediate plans to slash its standard gas prices by seven per cent. The company said it has also reduced its prices three times within the last 12 months.

If you want to find out more about switching energy suppliers and how you could save up to £378 in minutes, click here