28th July 2011
Yet the results prompted public outrage, says the Guardian, as the results come just weeks after announcing a price hike. The price rise comes at a time when household incomes are becoming increasingly squeezed by high inflation and muted wage growth.
The results include a 54% fall in operating profits at its residential energy division, British Gas, to £270m.
British Gas says higher wholesale gas prices are responsible for the fall in profits. The news comes as the firm prepares to raise gas prices by 18% and electricity prices by 16% in August.
The increase will push up the average bill for around nine million customers by £190 a year, reports the BBC.
The FTSE 100-listed company said British Gas profits were made in the first quarter of the year – with energy being sold at a loss since April.
Centrica said without the pending price rise in August, it would make a loss in the second half of the year.
However, British Gas did record an increase in customers in the period – up 159,000 to 16.1 million accounts, reports the Guardian.
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