British gas profit rise meets with anger (From Bournemouth Echo)
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British gas profit rise meets with anger
9:00am Wednesday 27th February 2013 in News
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.
Comments(6)
Glashen
says...
11:00am Wed 27 Feb 13
Old Harry wrote: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.
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!
BIGTONE
says...
11:18am Wed 27 Feb 13
speedy231278
says...
11:47am Wed 27 Feb 13
manyogie
says...
4:27pm Wed 27 Feb 13
I will go elsewhere solely in protest over this scandelouse profit.
Phixer
says...
4:33pm Wed 27 Feb 13
Old Harry wrote: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.
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!
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.
Old Harry says...
10:02am Wed 27 Feb 13