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| Version 0 | Version 1 |
|---|---|
| British Gas sees profits up 24% | British Gas sees profits up 24% |
| (40 minutes later) | |
| Operating profits at British Gas rose 24% in 2010 to £742m, its parent company Centrica has said. | Operating profits at British Gas rose 24% in 2010 to £742m, its parent company Centrica has said. |
| The news comes two months after the UK utility announced a 7% rise in domestic energy bills, which it blamed on rising wholesale prices. | The news comes two months after the UK utility announced a 7% rise in domestic energy bills, which it blamed on rising wholesale prices. |
| British Gas said it had increased its number of customers by 267,000 during the year to 16 million. | British Gas said it had increased its number of customers by 267,000 during the year to 16 million. |
| The results helped Centrica to achieve pre-tax profits of £2.8bn, with operating profits up 29% to £2.4bn. | The results helped Centrica to achieve pre-tax profits of £2.8bn, with operating profits up 29% to £2.4bn. |
| 'Bitter pill' | |
| The 24% rise in British Gas' operating profit came largely due to an increase in profit per customer, with the number of customers up just 1.7%. | |
| Some 85% of British Gas' profit came in the first half of last year, according to a Centrica spokesperson, when customers increased energy usage in response to cold weather and the firm attracted new business with a price cut in February. | |
| The second half was less profitable for the group's residential energy unit as wholesale prices rose more quickly. | |
| Centrica has claimed the decision in November to hike British Gas customers' energy bills was necessitated by a 67% rise in wholesale gas prices that year, and a 29% rise in the cost of wholesale electricity prices. | |
| Price comparison website Moneysupermarket.com called the rise in British Gas' profits a "real bitter pill to swallow for Britain's hard-pressed households who have suffered the double whammy of an extremely cold winter, coupled with high gas and electricity prices". |