The retail arm of Centrica which sells gas and electricity to residential customers has reported a 31% increase in profits to £571m.
The increased profits have led some to commentate that the industry is unscrupulously profiteering the low prices in the wholesale market.
The group, Fuel Poverty Action, which campaigns for those that struggle with energy costs, criticised the latest financial figures and accused companies like British Gas of over profiteering from the poor.
Ruth London of Fuel Poverty Action scathingly attacked British Gas by saying, “It is absolutely sickening that British Gas has made bumper profits in a year when there were more winter deaths than at any time this century. We have seen British Gas mercilessly hound hard-up customers even when bills are in dispute,”
British Gas is the largest supplier for gas to UK households currently supplying 40% of UK homes. They have cut household bills 3 times in the last 12 months, which they [British Gas] claim could reduce household outgoings by £100. Know all latest energy tariffs launched by British Gas.
However, those with a critical eye on the industry accuse energy companies of making only small cuts even though wholesale energy prices have tumbled due to the crash in gas and oil prices.
Centrica CEO, Iain Conn denied British Gas was profiteering arguing it made a profit margin of £55 per household last year, up from the £42 in 2015, an increase but one in line with past averages. The increase in profits were a result of greater use of energy from UK households.
Mr Shay Ramani, MD of, FreePriceCompare.Com a comparison site for energy and other subscription services said “consumers need also take responsibility and change suppliers. If you think a supplier is being unjust with its prices, chances are you’re probably right, and by switching not only do you send a message, you save yourself hundreds of pounds “
He goes on to add, “It’s scandalous that 70% of UK households are on a standard variable tariff and are losing out on savings around 20-35% per year”
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