British gas profit rise meets with anger

Bournemouth Echo: Centrica has posted increased profits after hiking tariffs Centrica has posted increased profits after hiking tariffs

THE owner of British Gas ran the gauntlet of public anger today as it revealed a £606 million profit haul at its residential arm months after hiking customer tariffs.

Centrica said an 11% rise in profits at British Gas residential came after last year's colder-than-normal weather saw gas use leap 12% and in spite of a 1% fall in customer accounts to 15.7 million in 2012.

The results are likely to raise questions over the fairness of energy bill increases after British Gas raised tariffs by 6% for around 8.4 million households at the end of last year.

Group adjusted operating profits rose 14% to £2.7 billion, but Centrica said it paid more than £1 billion in tax and invested £2.7 billion in 2012.

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10:02am Wed 27 Feb 13

Old Harry says...

Like it or not, the government of the time sold off British Gas to the private sector. It is unrealistic to believe that it, or any of the other national assets we have lost, can operate in the commercial markets as anything other than a company with increasing profits as the prime motivator. If we want these utility companies to start having social conciences then they need to be brought back into public ownership. Of course they would then start making losses again!
Like it or not, the government of the time sold off British Gas to the private sector. It is unrealistic to believe that it, or any of the other national assets we have lost, can operate in the commercial markets as anything other than a company with increasing profits as the prime motivator. If we want these utility companies to start having social conciences then they need to be brought back into public ownership. Of course they would then start making losses again! Old Harry

11:00am Wed 27 Feb 13

Glashen says...

Old Harry wrote:
Like it or not, the government of the time sold off British Gas to the private sector. It is unrealistic to believe that it, or any of the other national assets we have lost, can operate in the commercial markets as anything other than a company with increasing profits as the prime motivator. If we want these utility companies to start having social conciences then they need to be brought back into public ownership. Of course they would then start making losses again!
That is a very simplistic view IMHO, yes companies need to make a profit, but if that profit is earned in a competitive marketplace and reinvested in the business as British Gas is doing that is surely preferable to the unaccountable nationalised industries they replaced. Do you remember what British Gas was like before privatisation. One problem with British Gas is that they still benefit from their previous monopoly position, that is not a reason to go back to it.
[quote][p][bold]Old Harry[/bold] wrote: Like it or not, the government of the time sold off British Gas to the private sector. It is unrealistic to believe that it, or any of the other national assets we have lost, can operate in the commercial markets as anything other than a company with increasing profits as the prime motivator. If we want these utility companies to start having social conciences then they need to be brought back into public ownership. Of course they would then start making losses again![/p][/quote]That is a very simplistic view IMHO, yes companies need to make a profit, but if that profit is earned in a competitive marketplace and reinvested in the business as British Gas is doing that is surely preferable to the unaccountable nationalised industries they replaced. Do you remember what British Gas was like before privatisation. One problem with British Gas is that they still benefit from their previous monopoly position, that is not a reason to go back to it. Glashen

11:18am Wed 27 Feb 13

BIGTONE says...

We will all be like Fagins children soon.
We will all be like Fagins children soon. BIGTONE

11:47am Wed 27 Feb 13

speedy231278 says...

Has no-one spotted the very basic sums involved here. Gas use went up 12% from expected due to the weather, and their profits went up 11%. So, if it had not been so cold, the profit level would have remained almost unchanged despite the retail price going up. In fact, if we take the simplistic view, the profit would have gone down 1%!
Has no-one spotted the very basic sums involved here. Gas use went up 12% from expected due to the weather, and their profits went up 11%. So, if it had not been so cold, the profit level would have remained almost unchanged despite the retail price going up. In fact, if we take the simplistic view, the profit would have gone down 1%! speedy231278

4:27pm Wed 27 Feb 13

manyogie says...

Ive been with bG for years, but his is the end for me,
I will go elsewhere solely in protest over this scandelouse profit.
Ive been with bG for years, but his is the end for me, I will go elsewhere solely in protest over this scandelouse profit. manyogie

4:33pm Wed 27 Feb 13

Phixer says...

Old Harry wrote:
Like it or not, the government of the time sold off British Gas to the private sector. It is unrealistic to believe that it, or any of the other national assets we have lost, can operate in the commercial markets as anything other than a company with increasing profits as the prime motivator. If we want these utility companies to start having social conciences then they need to be brought back into public ownership. Of course they would then start making losses again!
The nationalised companies were monopolies which didn't understand 'customer service' and didn't give a **** about their customers who, through paying tax, were also their shareholders.

Any profit would go to the exchequer but when the utilities wanted money to improve services - sic - then there would be a bun fight over who would get money - and enough of it. Too much tinkering by government to curry political favours.

As it is now, many of us are still shareholders, either directly or through pension funds, and we can, if we're not too lazy, complain to and criticise the running of these companies via their directors.
[quote][p][bold]Old Harry[/bold] wrote: Like it or not, the government of the time sold off British Gas to the private sector. It is unrealistic to believe that it, or any of the other national assets we have lost, can operate in the commercial markets as anything other than a company with increasing profits as the prime motivator. If we want these utility companies to start having social conciences then they need to be brought back into public ownership. Of course they would then start making losses again![/p][/quote]The nationalised companies were monopolies which didn't understand 'customer service' and didn't give a **** about their customers who, through paying tax, were also their shareholders. Any profit would go to the exchequer but when the utilities wanted money to improve services - sic - then there would be a bun fight over who would get money - and enough of it. Too much tinkering by government to curry political favours. As it is now, many of us are still shareholders, either directly or through pension funds, and we can, if we're not too lazy, complain to and criticise the running of these companies via their directors. Phixer

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