This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.
You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/7534421.stm
The article has changed 17 times. There is an RSS feed of changes available.
| Version 8 | Version 9 |
|---|---|
| Anger over £1bn Centrica profits | Anger over £1bn Centrica profits |
| (20 minutes later) | |
| Consumer groups have expressed anger as British Gas owner Centrica revealed £5m-per-day profits, after announcing a record price hike on Wednesday. | Consumer groups have expressed anger as British Gas owner Centrica revealed £5m-per-day profits, after announcing a record price hike on Wednesday. |
| Profits were £992m in the first six months of 2008, down 20% from £1.23bn a year earlier, with the firm blaming higher wholesale gas prices. | Profits were £992m in the first six months of 2008, down 20% from £1.23bn a year earlier, with the firm blaming higher wholesale gas prices. |
| On Wednesday, British Gas raised gas bills by 35% with immediate effect, to restore "reasonable profitability". | On Wednesday, British Gas raised gas bills by 35% with immediate effect, to restore "reasonable profitability". |
| Adam Scorer, of watchdog Energywatch, said: "Customers will be outraged." | Adam Scorer, of watchdog Energywatch, said: "Customers will be outraged." |
| Fuel poverty | Fuel poverty |
| Patrick South, Age Concern's head of public affairs, said: "Energy companies say they can't absorb wholesale price rises, but in light of their profits this will sound hollow to the one-in-three pensioners likely to be in fuel poverty this winter." | |
| Despite the drop in earnings, Centrica said it would raise its dividend to 3.9 pence a share from 3.35p. | Despite the drop in earnings, Centrica said it would raise its dividend to 3.9 pence a share from 3.35p. |
| A committee of MPs recently warned that higher gas and electricity bills would have serious consequences for millions of households. | A committee of MPs recently warned that higher gas and electricity bills would have serious consequences for millions of households. |
| The committee was worried that the UK's energy markets were not functioning "as efficiently as they should". | The committee was worried that the UK's energy markets were not functioning "as efficiently as they should". |
| After Centrica's results, a group of council leaders said energy suppliers should be subjected to a £500m annual charge to beat fuel poverty and cut carbon emissions. | After Centrica's results, a group of council leaders said energy suppliers should be subjected to a £500m annual charge to beat fuel poverty and cut carbon emissions. |
| Paul Bettision, chairman of the Local Government Association's environment board, said: "Energy companies are making massive profits at the expense of hard working families." | |
| HAVE YOUR SAYWhy has BG made a 35% hike in prices when they have only taken a 20% hit to profits? Mike, ChesterSend us your comments | |
| Centrica's move to increase prices on Wednesday came after EDF Energy raised prices last week. Analysts say other firms are likely to follow suit. | Centrica's move to increase prices on Wednesday came after EDF Energy raised prices last week. Analysts say other firms are likely to follow suit. |
| Tough market conditions | Tough market conditions |
| Adam Scorer, Energywatch's campaigns director, said households would be "staggered" at Centrica's profits. | Adam Scorer, Energywatch's campaigns director, said households would be "staggered" at Centrica's profits. |
| He added that customers would be outraged "to learn that while they ponder how to make ends meet, Centrica's shareholders are enjoying an increase in their dividends". | He added that customers would be outraged "to learn that while they ponder how to make ends meet, Centrica's shareholders are enjoying an increase in their dividends". |
| Phil Bentley, British Gas managing director, told the BBC: "The price of gas for this winter, even though it's fallen a little bit, it's still double what was last year." | |
| Centrica said the results were "good" given the tough market conditions. | Centrica said the results were "good" given the tough market conditions. |
| This is a business that has got a million shareholders - a lot of pension funds and people have got their savings invested in British Gas shares and we have to look after them Sam Laidlaw, chief executive, Centrica Record rise for British Gas bills | This is a business that has got a million shareholders - a lot of pension funds and people have got their savings invested in British Gas shares and we have to look after them Sam Laidlaw, chief executive, Centrica Record rise for British Gas bills |
| The company's shares added 1.7% in London following the earnings news. | The company's shares added 1.7% in London following the earnings news. |
| Centrica said it was obliged to raise gas prices in light of dwindling reserves and higher oil prices that had pushed up costs. | Centrica said it was obliged to raise gas prices in light of dwindling reserves and higher oil prices that had pushed up costs. |
| Sam Laidlaw, Centrica's chief executive, justified the price rise, saying: "This is a business that has got a million shareholders - a lot of pension funds and people have got their savings invested in British Gas shares and we have to look after them". |