British Gas announces profits increase of 23%

The UK’s largest energy supplier made a record profit in the first six months of 2012, and has hinted that further rises may be coming in the next year and a half.

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The company, which is a part of Centrica plc, announced profits were up £64m to around £345m – back to “normal levels” according to Nick Luff, Centrica’s Finance Director.

In this time the average household has paid an additional £90 on their energy, with the average UK dual fuel bill having risen to around £1,300 per annum over the last few years.

British Gas has nearly 16 million domestic customers in the UK.

These hikes will no doubt leave a bitter taste in the mouths of consumers, who have still not seen prices decrease since the massive hikes made by all of the big six energy suppliers at the tail end of 2011.

British Gas blames rising wholesale gas prices for the bulk of the increase.

The future could see gas and electricity prices fall though – if Britain’s shale gas reserves are tapped then suppliers will be able to buy gas at much cheaper rates, an effect that has seen gas prices slashed half in some parts of the US, as suppliers purchase gas extracted in the US rather than much more expensive foreign imports.