British Gas is Absolutely Raking it in

By Aatif Sulleyman on at

British Gas made a whopping £574 million in profits in 2015. That's a tidy sum. It represents a 31% upswing from the previous year, during which it brought in £439 million. The company says this was due to a 5% increase in gas consumption, as a result of colder weather, though we’re pretty sure the massive drop in wholesale gas prices played a small part too.

"The reason the profits went up in 2015 versus 2014 actually is very simple - it's about the weather and about consumption," said Iain Conn, the chief executive of Centrica, British Gas’ parent company. "We saw a very mild 2014 and we saw a more normal 2015 and therefore the amount of energy that our customers used went up and therefore the actual total profit went up."

Last week, British Gas became the last of the UK’s major energy firms to slash gas prices, and it’s done so by 5.1%. Wholesale prices, meanwhile, fell by a measly 57%. According to the Competition and Markets Authority's estimates, consumers were made to overpay by £1.2 billion a year between 2009 and 2013. It seems like that's still very much the case. [BBC]