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| British Gas owner warns on profit | British Gas owner warns on profit |
| (20 minutes later) | |
| Centrica, the owner of British Gas, has warned that profits will be squeezed by soaring gas and power prices and hinted that fuel bills could rise again. | Centrica, the owner of British Gas, has warned that profits will be squeezed by soaring gas and power prices and hinted that fuel bills could rise again. |
| It said that wholesale gas and electricity prices were 92% and 100% higher than a year ago. | It said that wholesale gas and electricity prices were 92% and 100% higher than a year ago. |
| And it would take "action to deliver reasonable margins", which could mean price rises for customers. | And it would take "action to deliver reasonable margins", which could mean price rises for customers. |
| The warning of "materially lower" profit for the first half of 2008 comes despite recent British Gas price rises. | The warning of "materially lower" profit for the first half of 2008 comes despite recent British Gas price rises. |
| In January British Gas increased gas and electricity bills by an average of 15% in the face of rising wholesale prices. | In January British Gas increased gas and electricity bills by an average of 15% in the face of rising wholesale prices. |
| Allan Asher, the chief executive of industry watchdog Energywatch, said that if British Gas raises prices, other suppliers follow suit. | Allan Asher, the chief executive of industry watchdog Energywatch, said that if British Gas raises prices, other suppliers follow suit. |
| "Sadly if one company goes ahead and raises prices, others will respond." | "Sadly if one company goes ahead and raises prices, others will respond." |
| "For the fuel poor, it's terrible news," he told BBC News. | "For the fuel poor, it's terrible news," he told BBC News. |
| Centrica shares were the earliest morning faller in London, down 1.57%, or 4.5p, at 283 pence. | |
| "Today's announcement is likely to put downward pressure on consensus of 2008 estimated EPS of 26.2 pence, but this should not come as a surprise to investors given the current commodity price environment," Cazenove analysts said in a note. | |
| Meanwhile, British Gas said that its customer service had improved, with complaints to Energywatch down 78% from 2007. | Meanwhile, British Gas said that its customer service had improved, with complaints to Energywatch down 78% from 2007. |