British Gas profits jump to £571m

"Energy supplier British Gas has reported annual profits of £571m at its residential arm, up from £95m in 2006."

"Consumers will feel justified in claiming that they are being taken for a very rough ride by energy companies."

http://news.bbc.co.uk/1/hi/business/7256096.stm

I think customer's will definately feel they have been taken for a ride and the figures would certainly seem to support them. There will have to be some damn good footwork by british gas on this issue to keep customer's.

We need to earn a return to invest in new sources of energy for the UK

I thought the increase last year was due to increasing wholesale costs?

[Octal]

And just after they hike prices to 15%, I know why I left them now and no chance of going back.

Originally Posted by Octal

And just after they hike prices to 15%, I know why I left them now and no chance of going back.

Who did you switch to?

[Octal]

Originally Posted by Enuff

Who did you switch to?

Southern electric, that was a few years ago, not the cheapest but I've been very satisfied with them, they sorted a problem out I had very efficiently, more than what BG did, they just fobbed me off.

[Vlad_Dracul]

I think that those profits are quite reasonable for a business of that size and with that level of turnover.

When the media talk about profits made by energy companies, why do they only talk about British Gas ? Why dont they talk about other energy companies who make big profits in the UK? For example EDF, (Electricite De France) and many others..

We are in a free market now,people can pick and choos so if they are not happy with BG,they need to move on. I personally use Atlantic electric and gas.

[Chrysalis]

but who do people choose when they all raising prices cartel style?

Originally Posted by Chrysalis

but who do people choose when they all raising prices cartel style?

Try Atlantic I've got a good deal with them at the moment for my gas and electric.

---------- Post added at 06:26 ---------- Previous post was at 06:23 ----------

Originally Posted by Enuff

"Energy supplier British Gas has reported annual profits of £571m at its residential arm, up from £95m in 2006."

"Consumers will feel justified in claiming that they are being taken for a very rough ride by energy companies."

http://news.bbc.co.uk/1/hi/business/7256096.stm

For a massive company like BG thats not a massive profit, why do people slate BG for making money?

[danielf]

Originally Posted by Nidge

For a massive company like BG thats not a massive profit, why do people slate BG for making money?

It's not the profit per se. It's the fact that profits have increased by around 500% when BG increased their prices by around 20% quoting increased wholesale prices. Unless previous years' profits were deflated (due to writeoffs for instance) the increase in profits suggests that BG have increased their prices far beyond what is reasonable considering the increased wholesale prices.

Incidentally, Powergen have just increased their prices as well. As usual, they only state the new prices, so the customer is unable to see by what percentage they have increased...

[Shaun]

You're lucky you can see the prices for Powergen, when I looked on their site I couldn't find an actual price list for love nor money. Had to call and ask them to send one (it's still not arrived).

I just wish they would give us the prices per unit so that we can choose ourselves rather than using (from my experience) those dodgy price comparison websites.

[nomadking]

Originally Posted by Chrysalis

but who do people choose when they all raising prices cartel style?

They are just re-selling something that somebody else is producing. If the cost of that product is increased by their supplier for all of them, then they all have no choice but to raise prices to consumers. It's just a matter of which company is forced to jump in first with the price increase. Consumers therefore switch supplier, then that supplier is forced to increase prices and so it goes on. So doesn't it make sense that as they all are forced to increase prices, that they all do it together. No pointless switching of supplier with all the inherent actual and potential costs and problems for both supplier and customer.

If you want to talk about cartels, what about 'Fairtrade' and 'Organic'. Prices are artificially inflated and controlled by an organisation.

Oh dear - Despite their soaring profits they feel inclined to raise prices yet again this year...

Originally Posted by Sky News

British Gas has hinted that there could be more sharp price rises in the coming months. Its parent company Centrica says it will be forced to put up charges after wholesale costs almost doubled. Sky's Business editor Michael Wilson reports.

Video source:-

http://video.news.sky.com/skynews/vi...20508_1500.flv

So British Gas (and I bet the others follow) customers will be paying double than what they were paying just 3 years ago in 2005.

They've got us by the short and curlys'! Try to live in this day and age without gas or electric.

I might invest in one of these, but i'd have to have the survey done first.

[slowcoach]

And then they try to sell you Insurance with each bill, hey, just keep hammering the nails into my head won't you.