Five Questions About: British Gas profits

  • @simonnread

Presumably they've soared again?

They sure have. In fact, they're up 23 per cent in the past six months to a whopping £345m. The company says it profited from the bad weather in the first part of the year as everyone was forced to turn up their heating.

Great news. So can we expect lower bills?

Not a chance. In fact, the firm has already warned its 15.8m customers that bills are likely to climb again in the autumn. Meanwhile, the average household energy bill for a British Gas customer has climbed by 14.5 per cent – or £160 – since January 2011

But if the company is increasing profits, surely it can cut charges?

Not according to British Gas chiefs. They say the company needs to increase profits to pay for future investment in infrastructure and more fuel-efficient homes.

Ah. So does that mean we will we get cheaper bills in the future?

Probably not. The company seems to be more focused on increasing returns to shareholders than offering better deals to consumers.

So what can I do?

Switch to a rival supplier which offers a cheaper deal. Go online and research on the many comparison sites. But bear in mind that deals change all the time, so you may need to check again in a few months.