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| Version 6 | Version 7 |
|---|---|
| British Gas bills may rise again | British Gas bills may rise again |
| (about 3 hours later) | |
| Centrica, the owner of British Gas, has signalled that fuel bills could rise again as its profits are squeezed by higher gas and power prices. | Centrica, the owner of British Gas, has signalled that fuel bills could rise again as its profits are squeezed by higher gas and power prices. |
| Centrica said it would take "action to deliver reasonable margins". | Centrica said it would take "action to deliver reasonable margins". |
| It warned it may have to take action after wholesale gas prices increased by 92% from a year earlier, and wholesale electricity costs doubled. | It warned it may have to take action after wholesale gas prices increased by 92% from a year earlier, and wholesale electricity costs doubled. |
| Centrica said its profits would be "materially lower" in the first half of 2008 despite British Gas price rises. | Centrica said its profits would be "materially lower" in the first half of 2008 despite British Gas price rises. |
| In January of this year, British Gas increased gas and electricity bills by an average of 15% in the face of rising wholesale prices. | In January of this year, British Gas increased gas and electricity bills by an average of 15% in the face of rising wholesale prices. |
| Price comparison website uSwitch.com said that the average household bill would rise by about 10%, or roughly £105, by late summer, with a further 15%, or £173, hike in January 2009. | Price comparison website uSwitch.com said that the average household bill would rise by about 10%, or roughly £105, by late summer, with a further 15%, or £173, hike in January 2009. |
| "It's pretty clear that something has to give and that household energy prices are going to be shooting up again this year," said Tim Wolfenden, head of home services at uSwitch.com | "It's pretty clear that something has to give and that household energy prices are going to be shooting up again this year," said Tim Wolfenden, head of home services at uSwitch.com |
| 'Terrible news' | 'Terrible news' |
| Allan Asher, the chief executive of industry watchdog Energywatch, said that if British Gas raises prices, other suppliers could follow suit. | Allan Asher, the chief executive of industry watchdog Energywatch, said that if British Gas raises prices, other suppliers could 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. |
| In April, French bank Societe Generale said Centrica's residential arm could be loss-making in the first half 2008, unless it raised domestic prices again. | In April, French bank Societe Generale said Centrica's residential arm could be loss-making in the first half 2008, unless it raised domestic prices again. |
| "Today's announcement is likely to put downward pressure on consensus of 2008 estimated earnings per share 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. | "Today's announcement is likely to put downward pressure on consensus of 2008 estimated earnings per share 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. |
| Centrica's shares were up 2.7%, or 7.75 pence, at 295.25p in late morning trade in London. | Centrica's shares were up 2.7%, or 7.75 pence, at 295.25p in late morning trade in London. |
| Legal action | Legal action |
| Centrica also said it was taking legal action against consulting and technology firm Accenture over the design and implementation of a customer billing system. | Centrica also said it was taking legal action against consulting and technology firm Accenture over the design and implementation of a customer billing system. |
| British Gas received many customer complaints when the new system was rolled out in 2006 and 2007, it said. | British Gas received many customer complaints when the new system was rolled out in 2006 and 2007, it said. |
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| Energywatch says prices should be falling | |
| Centrica added that since Accenture left the programme, British Gas had managed to stabilise its customer service and customer complaints to watchdog Energywatch have fallen by 85%. | Centrica added that since Accenture left the programme, British Gas had managed to stabilise its customer service and customer complaints to watchdog Energywatch have fallen by 85%. |
| Accenture has said it met the specifications laid out by Centrica, and that the system was ready on time and within budget. | Accenture has said it met the specifications laid out by Centrica, and that the system was ready on time and within budget. |