British Gas is buying into a business which makes telecoms firms and data centres more energy efficient.

The supplier is chipping into a £7million pot of investment into 4energy along with existing investors the Environmental Technologies Fund, Carbon Trust and Catapult Venture Managers.

4energy claims it can cut the cooling needs for electronic data centre and telecoms equipment by up to 50%. Its software lets firms analyse their thermal footprints and change air-flows and temperature gradients, as in what rate and direction the temperature of buildings changes.

Phil Bentley, Managing Director of British Gas said: “Data centre and telecoms energy usage is increasing rapidly and this investment will enable us to help our customers to manage their energy more efficiently.”

The owner of energy supplier British Gas saw a huge boost in profits this year as consumers turned up their heating during the prolonged winter, increasing consumption by almost a fifth compared to last year.

Centrica, which raised gas and electricity prices in December by 6%, said it would use the profits to prevent any further price increases. The energy giant said it gained 28,000 customers in the first four months this year, which it claims was due to competitive pricing and good customer service.

Householders’ average gas usage was 18% higher in the first four months of 2013 compared to the same period last year, whilst electricity use rose by 3%. .

In a statement, Centrica said: “Recognising the economic pressures facing many of our customers, the Board has determined that any benefit arising from the exceptionally cold weather will be used to maintain our price competitiveness. As a result of this decision, we expect the residential energy supply business to deliver an operating profit for the full year in line with expectations, weighted towards the first half.”

Ann Robinson, Director of Consumer Policy at uSwitch.com welcomed the news as consumers continue to struggle to pay their household energy bills.

She said: “British Gas has recognised the pressure facing customers and is using the financial gain from the extended cold weather to maintain its competitiveness, In plain English, this means that British Gas customers should expect no further increase in prices at least for the foreseeable future.”

Energy companies that failed to meet the Government’s efficiency targets by the end of last year have pledged to work towards achieving them.

DECC had set the targets under two schemes – the Community Energy Saving Programme (CESP) for measures such as insulation and new boilers and the Carbon Emissions Reduction Target (CERT) for energy saving installations for the most vulnerable and low-income households.

British Gas, SSE, ScottishPower and Drax were among the companies that missed their targets, into which Ofgem has launched an investigation.

ScottishPower said it invested more than £400 million in the last five years, which has benefited around one million homes across the country and although it met its target for CERT, it fell behind on the CESP target.

Neil Clitheroe, CEO of ScottishPower Retail and Generation said: “We managed to achieve 70% of our target by the end of 2012 and had already identified and contracted work to achieve the remaining 30%. As at today, this 30% of measures has been installed in homes across the country, with approximately 20,000 families benefiting across our entire CESP programme.”

SSE claims it insulated nearly 500,000 cavity walls, almost 970,000 lofts and replaced around 30,000 boilers under the CERT scheme, however, it missed its CESP target by 10%. In a statement, the energy company said: “In relation to the Community Energy Saving Programme, SSE has contracts in place which, when completed, will deliver its obligated carbon savings.”

British Gas missed its CERT target by 2% and its CESP target by almost 40% – the worst out of all. However, the firm said it aims to meet the remaining targets this year.

The company said in a statement: “Under the CESP scheme we focused on improving homes in some 318 low-income communities with a high proportion of hard to treat housing, including measures such as solid wall insulation. However the particularly adverse weather conditions throughout winter prevented us from carrying out the improvements in the safest, most cost effective way. We expect to complete the remaining improvements by Summer 2013.”

Drax also failed to meet its targets as revealed by Ofgem, however, the firm said its competence lies in electricity generation.

A spokesman said: “As an independent electricity generator Drax has no direct relationship with domestic consumers and no expertise in delivering energy efficiency schemes to households so we outsourced this service but our chosen provider failed to deliver our obligation. We entered into further agreements with additional third parties in order to rectify this shortfall so far as was practicable, but for various reasons we were not able to fully comply by the end of the obligation period. We are assisting Ofgem in its investigation.”

Energy Secretary Ed Davey said he is “disappointed” that six energy firms did not meet the efficiency targets set by the Government last year.

British Gas, SSE and Scottish Power were among the companies that missed their targets as revealed by Ofgem today, which is launching an investigation into what happened.

Under two schemes launched by DECC – the Community Energy Saving Programme (CESP) and the Carbon Emissions Reduction Target (CERT) – energy firms had to introduce measures such as insulation and also deliver energy saving installations to people in the most deprived areas in the UK.

According to Ofgem, both British Gas and SSE failed to meet their targets under either scheme and Scottish Power missed its CESP target. Electricity generation companies GDF Suez/IPM and Intergen also missed both targets. E.ON, EDF Energy and npower, however, met all their obligations under both targets.

British Gas missed its CERT target by 2% and its CESP target by almost 40% – the worst of the lot. SSE also missed CESP target by 10%.

Mr Davey said: “I am disappointed that under the old schemes some companies failed to meet their obligations. Ofgem will be conducting a thorough investigation and will take any necessary enforcement action. We are already acting through the Energy Bill to give Ofgem the teeth it needs in future to get compensation to those directly affected.”

However, Energy UK, the trade body for energy firms, said 99% of the targets that were met ensured millions of households had lower bills.

Chief Executive Angela Knight said: The tremendously hard work involved in the CERT and CESP programme means customers have saved hundreds of pounds off their energy bills. We look forward to having a constructive dialogue with Government and Ofgem on what worked well and what could be improved so that future programmes are properly planned and considered before they are brought in. Binding obligations must also be fair to all companies to allow them to deliver benefits to consumers in the most cost effective manner possible.”

Consumer group Which? supported Ofgem’s announcement that it would take action against the firms who haven’t met their targets.

Executive Director Richard Lloyd added: “Consumers pay for these schemes through their energy bills and so have a right to know how much they are costing. We want the Government to ensure that there is full transparency on the costs of the new Energy Company Obligation (ECO) so we can judge if they are delivering real value for money.”

The union for energy workers have condemned the payouts to Centrica’s bosses’ and slammed it as “obscene” as five executives got a total of £16.4 million in pay and bonuses last year.

The figure is from its Annual Reports and Accounts for 2012, which also showed British Gas made £606 million in profits last year – equivalent to nearly £50 per household. The company said its revenue from continuing operations increased to £23.9 billion last year compared to £22.8 billion in 2011.

The news comes after British Gas announced a 6% hike in energy prices at the end of last year, leaving many householders struggling to pay their bills.

Gary Smith, GMB National Secretary for gas and energy workers said: “GMB condemn these salaries paid from the budgets of hard pressed households. It is obscene and is the straw that could break the back of corporate excess. Cedric the Pig may have to hit the streets again to protest at such greed. We need renationalisation to bring down executive pay in natural monopolies like energy and water.”

Centrica said the pay and bonuses are “based squarely on performance”. A spokesperson added: “In 2012, we delivered another year of consistent earnings growth and invested £2.7 billion to secure energy supplies for our customers as we continued to improve service levels both in the UK and North America.

“In the current climate there is – understandably – a wider debate in society about pay differentials. What we are focused on at Centrica is ensuring that pay and bonuses are fair and that we are clear in explaining our remuneration.”

The report also claims Centrica invested around £2.7 billion in 2012, helping to secure supplies for the UK, of which £2 billion was invested in North Sea oil and gas assets. The company said it aims to integrate its natural gas business, focus on innovation to drive growth and increase its returns through efficiency.

Chief Executive Sam Laidlaw said: “Centrica has a robust balance sheet and generates strong cash flows and we retain a number of investment opportunities across the Group. This combination, allied to our expertise and experience both upstream and downstream, defines Centrica’s core capabilities.

“However, we will maintain capital discipline, as evidenced by our recently announced £500 million share repurchase programme, only investing where we see value. Our aim now is to use those strengths to innovate and grow while adapting to a rapidly evolving energy world, serving our customers and delivering value to shareholders.”

The owner of British Gas has signed an import deal with a US energy firm for liquefied natural gas (LNG) in a bid to ensure the UK’s energy security.

The 20-year agreement includes the purchase of 89 billion cubic feet of annual LNG volumes for export from Cheniere Energy Partners’ Sabine Pass plant in Louisiana. It is equivalent to the gas demand of around 1.8 million UK homes every year.

Prime Minister David Cameron welcomed the deal and said future gas supplies from the US would help diversify the UK’s energy mix and provide consumers with a new “long term, secure and affordable source of fuel”.

Sam Laidlaw, Chief Executive of Centrica added: “In an increasingly global gas market, this landmark agreement represents a significant step forward in our strategy, enabling Centrica to strengthen its position along the gas value chain and helping to ensure the UK’s future energy security. We are therefore very pleased to have signed this agreement and look forward to working with Cheniere.”

The contract includes the option for a 10-year extension and the target date for first commercial delivery is September 2018.

The news follows reports last week about Britain facing a potential gas supply crisis, which were denied by the Department of Energy and Climate Change.

British Gas saw a drop in its business energy profits of £17m while its residential sector saw a massive boost.

Its profits in 2012 topped £606million for its residential customers, rising 11% compared with the year before, according to the supplier’s yearly results released today. The firm’s parent company Centrica put this down to “cooler weather” in 2012 with average domestic gas use jumping by 12%, suggesting this was the reason for a big rise in profits compared to a “warm” 2011.

However the firm took a hit on its business energy supply and services, with profits dropping by £17million or 9%, from £192m in 2011 to £175m last year, which Centrica blamed on the “weak economy”.

Out of total profits worth £1,093million, its residential services counted for £323million – up 16% from 2011.

Sam Laidlaw, Chief Executive of Centrica said: “A relentless focus on cost management helped British Gas implement the lowest tariff increase of all the major energy suppliers, necessitated by higher wholesale energy costs, Government driven green energy costs and the imposition of additional infrastructure charges.”

He admitted public trust in the industry had been shaken: “Nevertheless, the very real concerns of hard pressed consumers, fuelled by external commentary, has impacted public trust in the industry and in British Gas as the nation’s largest energy supplier in particular.”

Justifying their performance, British Gas said it had won five star customer service rating from Consumer Focus, as well as plans to give 400,000 customers the £130 Warm Home Discount.

While some groups said people were right to be “furious” at the jump in profits which were “tantamount to waving a red rag at a bull”, one UK consumer body conceded the country “needs” profitable energy firms to pay for upgrading our ageing energy system.

Audrey Gallacher, Director of Energy at Consumer Focus said: “We do need to ensure that the lights stay on and that we plan our way out of dependence on imported fossil fuels. But consumers are anxious about the future. They need greater transparency about the relationship between the size of increased prices, increased profits and increased investment. They need to be confident that energy policy was as much about keeping energy affordable as about security of supply or reducing carbon emissions.”

Others seized the chance to rail against Chancellor George Osborne for proposing to “massively increase” UK reliance on gas. Greenpeace Energy Campaigner Leila Deen said: “Gas is driving bills up, and for as long as we’re dependent on it for our energy, our bills will be at the whim of companies like British Gas. That’s why we must move towards a carbon free electricity system, which will be cleaner, safer and cheaper over time.”

One thousand green jobs for young unemployed people are being offered by British Gas over the next three years.

The energy supplier announced the skilled job opportunities today in partnership with environment charity Global Action Plan and consultancy Accenture.

The Transform partnership will give free sustainability training to 1,400 17-25 year olds not currently in education, employment or training. Each person which completes the course will earn a BTEC qualification and is guaranteed an interview with British Gas.

The 1,000 full-time roles for British Gas will be working with its government-mandated scheme, the ECO (Energy Company Obligation) programme, which improves housing with energy saving measures such as insulation.

It follows a recent report by the Work Foundation which found that since the start of the recession, youth unemployment in the UK has risen faster than any other G8 nation.

In November and December 2012, Transform was successfully piloted in Walsall and Glasgow where all 17 jobs on offer were filled, including successful applicant 21-year-old Jeevan Dhillan (pictured).

Claire Williams, Managing Director of British Gas New Energy said: “Growth, unemployment and sustainability are big challenges for the country.  Big British companies have a responsibility to make a positive contribution which is why we are taking action to create skilled green jobs in areas of low employment.

“This training will make a difference to unemployed young people who will get skills and jobs as well as hard-pressed households who will benefit from energy efficiency measures”.

Householders in Britain could now save around £220 a year by switching energy suppliers through a new collective switching initiative launched today.

Called ‘UK Together’, the nationwide scheme could help households access up to £2 million of savings on their energy bills and unlock increasing savings as more people join. First Utility, which won the UK Together auction against leading energy suppliers, will be offering people who join the initiative a £40 money back deal, which it claims will rise as more people join.

Householders using prepayment meters and those who pay with cash or cheque will also get a deal with the Clear and Simple tariff by British Gas. Single fuel customers would get an additional incentive of £10 if 5,000 switches take place, rising to £25 for 10,000. Dual fuel customers would get £50 cash back, which could rise to £70 for 5,000 switches and £100 for 10,000.

Ruth Binny, Project Director at energyshare, a community energy platform which manages the project said: “It’s very exciting that we are getting people across the UK to engage in collective switching. We’ve also got some market leading deals and a great new way of making further savings when more people join…We’re really looking forward to seeing what happens when people get together to get a better deal on energy.”

The new initiative follows the ‘Cornwall Together’ scheme launched by Energy Secretary Ed Davey last year, which is believed to have saved more than £150,000 – or an average of £133 and some households saving more than £700.

Earlier this month Mr Davey also launched the ‘Cheaper Energy Together’ project aimed at providing collective and instant energy switching service to householders, especially the fuel poor.

Is your British Gas energy tariff the cheapest one? If you’re not sure, then you may benefit from the supplier’s new service, which will tell its customers just that every six months.

Under the new ‘Tariff Check’ personalised service, the energy supplier will check its customers’ energy usage for the previous 12 months and let them know if they can save money by switching to a different tariff. British Gas has also pledged to show other ways of saving on energy bills, including insulation and other energy efficiency measures.

The news follows Prime Minister David Cameron’s pledge last year to get energy suppliers to offer the lowest tariffs to all their customers.

Ian Peters, Managing Director of Residential Energy said: “We know that household budgets are under pressure and people need to find ways to cut costs and I also know from speaking to customers they are often short of time. That’s why we’ve introduced ‘Tariff Check’, helping our customers by doing the research and hard work on their energy account for them and clearly setting out ways to save – including moving to a different tariff if it will be cheaper for them.”

However, Which? suggested consumers will need to check elsewhere to make sure they are on the cheapest energy deal on the market. The consumer body said: “British Gas is the first of the major energy companies to provide this service to all customers automatically. However, its tariffs are not the cheapest on the market, and some bill payers could be hundreds of pounds better off by switching to a deal with a cheaper provider.”

Earlier this month, ELN reported that the Government will add new clauses to the Energy Bill simplifying and reducing the number of energy tariffs to help consumers get a better deal.