British Gas owner Centrica’s profits hit £1.5bn

Centrica, the owner of British Gas, has announced its operating profit went up 4% last year to £1.5 billion. Its UK and Ireland Energy Supply & Services division also reported […]

Register now!

By Priyanka Shrestha

Centrica, the owner of British Gas, has announced its operating profit went up 4% last year to £1.5 billion.

Its UK and Ireland Energy Supply & Services division also reported a 2% increase to £906 million.

However operating profits at its British Gas domestic supply business fell 11% to £553 million – from £623 million in 2015.

It is said to be partly due a fall in customer accounts – around 400,000 – largely in the first half of the year.

The results come weeks after the Big Six supplier, which provides energy to around 28 million customer accounts in the UK, Ireland and North America, said it would extend a freeze on tariffs.

Its growth businesses made “strong progress” in 2016, particularly the Connected Home and Distributed Energy & Power.

Yesterday British Gas said it would launch a new loyalty programme from April, offering customers discounted energy and entertainment packages.

Centrica has also launched a £100 million venture to identify and invest in innovative ideas and technologies that can deliver new products, offers and services for customers.

Iann Conn, Centrica Group Chief Executive said: “2016 was a year of robust performance and progress in implementing and progress in implementing our customer-focused strategy. We delivered our key objectives, including improved customer service and more innovative offerings and solutions, while repositioning the portfolio, building capability and driving significant cost efficiencies.

“2016 was a busy year for the team, but we have delivered a lot, and Centrica enters 2017 a stronger company – with encouraging underlying momentum and positioned to deliver longer-term returns and growth.”