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| Version 1 | Version 2 |
|---|---|
| British Gas to cut its gas bills | British Gas to cut its gas bills |
| (about 2 hours later) | |
| British Gas owner Centrica plans to cut retail gas prices in spring 2007 after a fall in wholesale costs. | British Gas owner Centrica plans to cut retail gas prices in spring 2007 after a fall in wholesale costs. |
| Centrica also said its full-year earnings were on target to be more than many analysts had forecast, despite losing 978,000 accounts this year. | Centrica also said its full-year earnings were on target to be more than many analysts had forecast, despite losing 978,000 accounts this year. |
| Facing stiff competition, Centrica is restructuring and added that it would cut 1,310 jobs to boost efficiency. | Facing stiff competition, Centrica is restructuring and added that it would cut 1,310 jobs to boost efficiency. |
| Gas companies have been criticised in recent months for passing on high wholesale prices to consumers. | Gas companies have been criticised in recent months for passing on high wholesale prices to consumers. |
| 'Improving margins' | 'Improving margins' |
| Centrica said that a price cut was on the cards because the "warmest autumn on record in the UK has coincided with the predicted additional supplies of gas being delivered". | Centrica said that a price cut was on the cards because the "warmest autumn on record in the UK has coincided with the predicted additional supplies of gas being delivered". |
| It added that the extra supplies and a 15% decline in residential gas demand meant that "although the winter is still ahead of us, margins are improving". | It added that the extra supplies and a 15% decline in residential gas demand meant that "although the winter is still ahead of us, margins are improving". |
| "Against this background we have decided to absorb additional distribution costs of around £100m per annum, and we plan to reduce prices for our customers in the spring," Centrica said. | "Against this background we have decided to absorb additional distribution costs of around £100m per annum, and we plan to reduce prices for our customers in the spring," Centrica said. |
| "We remain resolute in our belief that British Gas must establish reasonable and sustainable profitability to provide long-term energy security of supply while delivering value to the customer," it explained. | "We remain resolute in our belief that British Gas must establish reasonable and sustainable profitability to provide long-term energy security of supply while delivering value to the customer," it explained. |
| Many observers have complained that firms such as Centrica were making large profits at the expense of vulnerable energy consumers who would have been badly affected by high prices over the winter months. | Many observers have complained that firms such as Centrica were making large profits at the expense of vulnerable energy consumers who would have been badly affected by high prices over the winter months. |
| Centrica said its British Gas Residential Energy division had returned to profit in the second half, helping the company to top the average analyst forecast for earnings of about 18 pence per share. | Centrica said its British Gas Residential Energy division had returned to profit in the second half, helping the company to top the average analyst forecast for earnings of about 18 pence per share. |
| Shifting work | Shifting work |
| Centrica said it planned to shut headquarters of British Gas Residential Energy at Stockey Park with the loss of 700 back office roles. The staff will be relocated to Staines. | Centrica said it planned to shut headquarters of British Gas Residential Energy at Stockey Park with the loss of 700 back office roles. The staff will be relocated to Staines. |
| There will also be a restructuring of the British Gas Services team, with the loss of 340 jobs, with about 270 posts to go from the group's corporate structure. | There will also be a restructuring of the British Gas Services team, with the loss of 340 jobs, with about 270 posts to go from the group's corporate structure. |
| Many of the employees losing their posts will be found alternative service positions at British Gas, Centrica said. | Many of the employees losing their posts will be found alternative service positions at British Gas, Centrica said. |
| HAVE YOUR SAY British Gas are only doing it as a means to avoid further millions jumping ship Paul, London href="http://newsforums.bbc.co.uk/nol/thread.jspa?threadID=5016&edition=1&ttl=20061215103025" class="">Send us your comments The gas provider added that it expected its price cuts to help keep customers, and that even though it had lost 6% of customers this year, the rate of churn has slowed in recent weeks. | |
| "Moving customers onto our new system undoubtedly led to some teething problems this year," said Chief Executive Sam Laidlaw. "And service levels need to be improved." | "Moving customers onto our new system undoubtedly led to some teething problems this year," said Chief Executive Sam Laidlaw. "And service levels need to be improved." |
| "Signalling these price decreases should help reduce churn," he added. "We will cut customer prices in the spring, with the exact amount to be decided once we have complete clarity of winter gas costs." | "Signalling these price decreases should help reduce churn," he added. "We will cut customer prices in the spring, with the exact amount to be decided once we have complete clarity of winter gas costs." |