British Gas profit slip not all they are making it out to be
British Gas have today announced profits of £516 million for residential customers in the six months to 30 June. This is a fall of 7% compared to the same period in 2015. But British Gas announced in February a huge increase in profits of 31% to £574 million.
Hidden away in Centrica's announcement is the fact that half the fall in profits is "due to a one-off 23 million pension credit in 2015."
Responding Henry de Zoete, co-founder of consumer collective TheBigDeal.com, said:
"A small drop in British Gas profits needs to be put into perspective. In February this year their profits rose by an astonishing 31% and remain over half a billion pounds.
And this slight profit slip is not all British Gas is making it out to be. Hidden away in today's announcement is the fact that half of it is a one-off £23 million pension credit.
"The truth is that British Gas makes huge amounts of profit by charging ordinary families way more than they should be paying. The best deals on the market are hundreds of pounds cheaper than what the vast majority of British Gas customers pay.
"British Gas themselves had a deal out earlier this year that was £300 cheaper than their standard tariff. They need to do the right thing and cut bills for all their customers immediately."
Notes for editors
Centrica admits profit fall is due to a multi-million pension credit
Hidden away in today's announcement Centrica states that half of the fall in profits is due to a pension credit:
"UK Home adjusted operating profit fell 6% to £635 million in the first half of 2016, which includes energy supply operating profit of £516 million, down 7%. Around half of the UK Home reduction is due to a one-off £23 million pension credit in 2015, with the other half mainly reflecting lower holdings and energy use per customer, partially offset by efficiency benefits." (Centrica Interim results for the period ended 30 June 2016, https://www.centrica.com/sites/default/files/2016_interim_results_announcement_0.pdf)
British Gas cheapest deal £300 less than their standard deal
The cheapest deal British Gas offered this year was £744, this is £300 cheaper than their standard variable tariff at £1,044. It was offered through MoneySavingExpert's Big Energy Switch, available for the first two weeks of February.
TheBigDeal.com is a consumer collective focused on reducing people's energy bills. We bring together tens of thousands of consumers and use our collective buying power to create exclusive deals.
Launched in March 2014, we now have over 200,000 members and continue to grow. 62% of our members have never or hardly ever switched before - these are the very people who have been let down by the energy market for too long. Moreover, 60% of our members are over the age of 55 and 30% over the age of 65. We have saved the British public over £10 million since we launched.
TheBigDeal.com is a start-up business and charges a commission to energy companies. We are 100% transparent and publish the exact amount of our commission. For our latest switch that was £40 for a dual fuel (both gas and electricity) switch. This compares to as much as £80 to £100 for the Big Five price comparison websites who refuse to publish their exact commission.