The hot potato is getting even hotter. Centrica, the owner of British Gas today revealed its profits for the half year, a day after it officially announced a rise in gas prices. Although the profit they made for this half year is £998 million, which is 20% down comparing a year earlier, they have still been accused of taking money from many households despite large profits are being made and are being passed to shareholders who are getting substantial dividends.
Is it fair then? Can it be justified? The chief executive stated that this is a business which has got about a million of shareholders, a lot of pension funds and investors and thus their investments have to be taken care of.
Well, but how about the 6 million people who will be classified as in fuel poverty? Not sure if this could be justified.
On the other side of the coin, Centrica wanted to point out that they were the first energy company which dropped their prices last year when wholesale prices were falling.
However, now, British Gas will be charging on average a household the most, about £1240 a year for electricity and gas, while the other 4 players, excluding EDF, will still keep their prices under £1000 pounds.
So the question is, how long will it take before the next energy rival will announce rises in gas prices?
