Parent company set to announce £2.8bn profit increase
The parent company of British Gas has risked fierce consumer backlash following reports that it is set to announce a 15% increase in profits.
Centrica plans to reveal the figures this week, which show the company has made a profits increase of £2.8bn following the British Gas price hike in October 2011. Centrica have tried to justify their profits by releasing a study that shows the company have had a beneficial impact on the UK economy in terms of jobs and tax payments, but that is unlikely to appease consumers who have been hit with rising prices.
Centrica has argued that its practices are good for the country, but that won't wash with consumers
(Image source - Metro)
Richard Lloyd, executive director at consumer champion, Which?, said, ‘At a time when spiralling energy bills are consumers’ top financial worry, people are bound to question whether they’re paying a fair price for their energy when they see big profits announcements from the energy giants. Centrica’s analysis won’t change that view as record-high bills land on millions of doormats in the coming weeks'.
The news will bring the pricing of energy bills into question again, as well the Government’s plans to reduce them. PM David Cameron announced earlier this year that all energy providers will have to simplify their tariffs and make sure consumers are on the cheapest one possible. However, many critics have argued these measures won’t go far enough and consumers will be confused as to which is the cheapest option.
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