British Gas profits down due to mild weather

adminBusiness Electricity, Business Gas, Energy Efficiency

Energy giant Centrica reports operating profits drop of 35% for the first half of 2014.

British Gas Logo

British Gas profits are down to 4% for the first half of 2014.

Centrica, owner of British Gas has reported a group-wide drop in profits to £1.03 billion.

Profits at the residential arm of British Gas fell by over a quarter to £265 million in the same period.

Ofgem has however said that the big six energy firms are set to double profits over the next year. British Gas hit back claiming that Ofgem were using inaccurate figures.

Centrica has stated that the profits drop was due to people using less energy for heating over the mild winter, as well as energy efficiency increases.

Centrica boss Sam Laidlaw said “We had warmer weather in the UK which meant that actually our average customer’s consumption of gas was down 24%,”

“We actually also simultaneously had very cold weather in the US – the polar vortex – which resulted in generating companies charging us with a lot of additional ancillary costs.

“The good news from a customer’s point of view is that actually we expect average bills to be down by some 7%, or £90, this year.”

Sources: British Gas profits hit by warmer weather – BBC News | British Gas profits drop 26pc as customers turn down heating in mild weather – Telegraph