British Gas and hot air
British Gas users will be feeling pretty miffed just now. Not only did the customers of one of the UK’s biggest energy providers have to swallow a 15 per cent price rise in January 08 (not our fault, say British Gas, wholesale price rises simply being passed onto consumers), they then have to listen in disbelief as BG owners Centrica try to explain away a leap in operating profits of 40 per cent in 2007. British Gas meanwhile, says that profits rose from £95m in 2006 to £571m in 2007. There is a context here – that profit is being posted on sales of £6.5bn, so the margins aren’t actually that high; the soaring price of wholesale gas means the price charged to end consumers has to rise; and the company needs an increase in profits to invest in green energy.
All well and good, but opening your bills, and working out that (on average) you’re going to be paying £143 more for your gas this year, you’d be forgiven for wondering how British Gas can have it both ways. It means it’s more important than ever that you consider switching to another energy supplier. It’s not hard, and if you’ve been with the same supplier for any length of time you’ll almost certainly save money. Go to the motley fool or uswitch for more.