British Gas profits slammed

Following its announcement of an 83% rise in operating profits, British Gas has been criticised by comparison and switching service uSwitch.com. Alan Tattersall, Head of Home Services says: “It is disgraceful that British Gas has been able to squeeze these scandalous profits out of their customers – they are already the UK’s most expensive gas supplier, and today’s results just reiterate how little regard they have for their customers.”

British Gas, which is one of Britain’s largest suppliers of gas and electricity, attracted headlines in 2004 when over a million customers switched to other suppliers following a series of price rises. Whilst these rises were partly due to increases in the wholesale cost of gas and electricity, critics were keen to point out that previous reductions in wholesale prices had not been passed on to customers to the same extent.

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Alan continues: “British Gas has used rising wholesale gas prices as a smokescreen to extract ever increasing margins of profit from their customers. These profits are as a direct result of the record price increases of up to £150 per year, that British Gas inflicted on their customers over the course of 2004.”

Despite the price increases and customer desertions, 57% of gas customers in Britain remain with British Gas - many of whom are unaware that they are paying 20% more for their energy than they have to by remaining with their incumbent suppliers, i.e. British Gas and local electricity board. uSwitch.com urges British Gas customers to look for cheaper alternative suppliers for their gas and electricity as this could save them up to £170 a year.