British Gas residential profits rose 11 percent last year as gas use increased because of colder weather, the firm’s owner Centrica said on Wednesday.
Profits rose £606 million as gas use went up by 12 percent.
“After a warm 2011, cooler weather saw average domestic gas consumption increase by 12%,” Centrica said.
Group adjusted operating profits rose 14% to £2.7 billion, but the company said it paid more than £1 billion in tax and invested £2.7 billion in 2012.
British Gas had raised tariffs by six percent for around 8.4 million households at the end of last year.
Labour’s shadow energy and climate change secretary Caroline Flint said the figures showed it was time for a “complete overhaul of our energy market”.
“People will not understand why, just a few months ago, British Gas claimed they had no option but to put up their prices when now it looks like they’re making huge profits on the back of spiralling bills for hard-pressed consumers,” she added.
But company directors defended the results.
“I completely understand our profits announced today will create a reaction with customers,” Chris Jansen, managing director of services and commercial at Centrica, told ITV.
“I think it’s important to remember that in 2011 it was a very, very mild winter … so the country used a lot less gas, and actually our profits in 2011 were 20% down on 2010.”
Ian Peters, managing director of residential energy for British Gas, said the company had no plans to increase prices further, but did not say for how long.
“What I want to say is that we will move heaven and earth to keep our customers’ bills down. We have the lowest bills in the industry,” Peters said.
British Gas profits rise amid colder weather
