Saturday, 21 July 2012

BRITISH GAS ON RECORD PROFIT 2012



 A forecast assumes that British Gas will have its profit improved by 33 per cent. The biggest supplier of gas will have made a £350million in the first six months of the year.

Its parent company Centrica will have made a profit of £1.45billion and this is an increase of 15 per cent on the same period in 2011.

In spite of having used more domestic energy because of the weather keeping longer cold than normally but it doesn’t explain the 33 per cent and 15 per cent increase on profits. This comes from increasing the prices and they have been increased.

A few percentages would have been acceptable but 13 per cent on electricity and 33 per cent on gas is criminal in an economical recession. Again this would be where the government should step in but not a word or stopping it. Last year David Cameron had a meeting with Gas and Electricity companies and he promised to get them to reduce the prices in view of the situation.

INSTEAD OF A REDUCTION THERE IS NOW SHOWING A SKY HIGH INCREASE.

British gas promised to reduce electricity prices by 5 per cent in January. In spite of looking ungrateful but this reduction of 5 per cent was after a 16 per cent rise on electricity and 18 per cent rise on gas in the previous August.  Do we now jump up and down?

At the end of the financial year Centrica should have made £2.8billion and British Gas about £590million. Centrica will point out that they invested £1.5billion to make sure there are new supplies.

But Richard Hall, of watchdog Consumer Focus, said: “Consumers are facing historically high energy bills which focus their attention on whether pricing is fair.

“Whole prices rose a little earlier in the year but are now falling. We have long questioned whether drops in wholesale costs find their way to household bills.”

This is all very well said but what will done? Something has to be done because people can’t pay high energy prices and get their wages reduced, lose benefits and/or lose their jobs.

There are quite a number of watchdogs out there studying all these price rises and putting all these statistics together and seeing that they charged over the moon but not one is doing anything drastically about it. Sorry, to have to ask the question: “So what are they really there fore?” Surely if all those watchdogs would get together and pressure the government some result must come out of it.

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