British Gas profits / 15% price increases

[megawatt]

http://www.guardian.co.uk/business/...usiness.utilities?gusrc=rss&feed=networkfront

The company reported its residential business, which is the biggest supplier of energy to homes in the UK with some 16 million customer accounts, had made an operating profit last year of £571m compared with £95m in 2006.

British Gas, which raised gas and electricity prices for residential customers by 15% last month, said the bulk of the profit had been made in the first half of the year and it had made a profit of less than £40m in the second half.

Hmmmnnnnnn ...

Their CEO should be called Robin Barsteward.

I'm sure the British people will do nothing other than the usual moan, text to GMTV and phone call to the Jeremy Vine show.

We need direct action to get the benefit of people power ... See what happens when France tries to decrease farm subsidies or 1 cent is added to the price of a gallon of fuel in the US

All we'd need to do to get this resolved is for every British Gas customer to cancel their direct debit (or don't pay their next bill until the threatening letter arrives) and keep doing this every month.

I'd reckon one month, maybe two, before the prices come down

I am a realist though and don't expect anything to happen (other than further price increases).

Good job I'm loaded really.

MW

 

[oompah]

why not nationalise BG the government as started with Northern Rock a company in trouble ,why not bring a succesful company under public ownership and much needed coffers to the public accounts like the good old days.

 

[JohnD]

Luckily Centrica pays tax on its profits, and the shareholders pay tax on their dividends, so we get a modest slice of it.

Every consumer should look at switching their energy supplier, rather than pay high prices out of laziness.

 

[megawatt]

Luckily Centrica pays tax on its profits, and the shareholders pay tax on their dividends, so we get a modest slice of it.

Oh, that makes me feel MUCH better John

Every consumer should look at switching their energy supplier, rather than pay high prices out of laziness.

There'll soon be no point though as the price hikes are going industry-wide.

I do think its time the Govenment intervened with something so core as energy provision to prevent these companies increasing prices by 15% in January and recording record profits in February ... Doesn't happen in France or Germany or the US.

There must be millions of people in this country who will not be able to afford these increases whilst shareholders make a fat profit out of their misery ... And I have no reason to bleat as I'm not one of them, fortunately ... It's just soooooo wrong.

MW

 

[joe-90]

Gas is dominated by Russia these days and they will manipulate it to cause pain to America and make Russia a military force again.

 

[Richardp]

why not nationalise BG the government as started with Northern Rock a company in trouble ,why not bring a succesful company under public ownership and much needed coffers to the public accounts like the good old days.

Now thats a great idea and is what the labour party said that they would do if they got back into power, funny how they forget all those things, they could have used that to their advantage when they took on the Northern Rock, ''well its what we promised you''

 

[Bilioustrumpstaine]

The government should take over all utility providers, gas, water, electric etc and stop these robbers.

 

[daytona]

smething tells me that wont be any different

 

[Bilioustrumpstaine]

Maybe not but at least the profits would go back into the community pot.

It is scandalous that the gas company makes millions when pensioners are afraid to switch the heating on because of the cost.

Gas should be free to those that have only their pensions to live on.

 

[joe-90]

Gas in Europe is linked to oil. Prices will continue to rise for decades. It's called Peak Oil and it's here today.

 

[megawatt]

Whilst what you say is true Joe, the scandal is that the utility companies are quite clearly raising prices over and above the crude oil increases to make more profit at the expense of people on low incomes.

Whilst I'm not a believer in Nationalisation I do think something should be done to safeguard essential services.

MW

 

[JohnD]

from what I can see, in 2006 Centrica (Owners of the British Gas brand in the UK only) lost a lot of money through selling gas for less than it cost them so no surprise that last year they took care to make a profit.

That bloody Thatcher woman sold off the family silver...

Centrica Fundamentals
Year Ending Pre-tax profit
31-Dec-03 £778m
31-Dec-04 £1,159m
31-Dec-05 £1,812m
31-Dec-06 (£11m) (loss)
31-Dec-07 £2,111m

I am not a Centrica shareholder and have no axe to grind. I buy my gas from Atlantic.

 

[joe-90]

Whilst what you say is true Joe, the scandal is that the utility companies are quite clearly raising prices over and above the crude oil increases to make more profit at the expense of people on low incomes.

Whilst I'm not a believer in Nationalisation I do think something should be done to safeguard essential services.

MW

I agree. Pensioners will soon have to choose - heat or eat. It's a bad situation for them. Isn't that what the watchdog is for? To keep the barstards honest?

 

[joe-90]

and have no axe to grind.

What do you mean by that John? Where does that saying come from? (It's lost its original American meaning)

 

[megawatt]

31-Dec-03 £778m
31-Dec-04 £1,159m
31-Dec-05 £1,812m
31-Dec-06 (£11m) (loss)
31-Dec-07 £2,111m

It wasn't the cost of gas John they invested significantly during the year in question and, if you want my opinion, I think someone told them that they needed to show a loss to keep the board employed ... I mean, just look at those figures ... Disgraceful.

MW