The UK energy provider have announced that they made a profit of £742m in 2010. This is following a 7% rise in prices back in December, during the worst winter in a 100 years. This price increase affected half of their 16 million customers, leaving an average customers annual bill rise to £1,239, as opposed to the previous £1,157.
British Gas’ parent company Centrica have also revealed a 29% rise, raking them in £24 billion in profits. They have blamed the prices hikes on soaring wholesale prices, but have promised to create 2,600 jobs this year.
About the rising cost of bills, Centrica’s chief executive Same Laidlaw has said: “We’re in a volatile situation with commodity prices and we will so all we can to keep bills as low as we can”.
Mr Laidlaw also promised that all of British Gas’ ‘Duel-fuel’ customers are entitled to free loft and cavity insulation, but it was later confirmed that this was only available to the first 200,000 customers who applied.
British Gas are now being investigated by energy watchdog, Ofgem who will analise the companies’ balance sheets after they claimed they had no choice but to increase prices. The results of this investigation will be published next month.