British Gas profits drop 26%, predicts fall in energy bills

Household energy bills for British Gas customers will be around £90 lower this year compared to 2013, the energy giant predicts. That’s despite household energy supply profits falling 26% to […]

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By Priyanka Shrestha

Household energy bills for British Gas customers will be around £90 lower this year compared to 2013, the energy giant predicts.

That’s despite household energy supply profits falling 26% to £265 million in the first half of this year as a result of the “warmer weather and the wider political environment”.

Gas usage by British Gas customers fell 24% and electricity consumption dropped 9% this year.

Parent company Centrica said its profits across the group slumped by 35% to £1.03 billion in the first six months of 2014.

Despite that, it expects the average British Gas domestic bills to be £90 or 7% lower this year compared to 2013 and predicts to make a profit of £40 per household – 20% lower than last year.

However, Chief Executive of Centrica Sam Laidlaw expects the dip in profits to be short-lived.

He said: “With challenging trading conditions on both sides of the Atlantic in the first half, earnings will be lower in 2014 than in 2013.

“However, the group is well positioned to return to growth in 2015.”

Earlier this week Centrica announced the appointment of Ian Conn, currently BP’s head of refining and marketing, as its new CEO – taking over from Sam Laidlaw from the start of next year.