The energy giant, owned by Centrica Group Plc, has announced a profits increase of 11% for 2012.
British Gas claims that a colder winter compared to 2011 helped to increase profits as customers used more gas. Gas consumption was up 12% on the previous year.
This comes as a shock to many, as British Gas raised their electricity and gas prices by 6% in November.
Profits were up 16% to £312m at British Gas’ residential services unit, which covers services such as boiler repairs.
Centrica posted profits of £2.7bn, up 14% on the previous year.
Centrica’s dividends to shareholders have risen 6% and the company is also returning £500m to them.
Centrica Chief executive Sam Laidlaw said: “It’s important that Centrica makes a fair and reasonable return so that we can continue to make our contribution to society and invest.”