British Gas owner’s profits set to hit £1.4billion ... which is same amount we’re being overcharged for energy!

BRITISH Gas is expected to announce a profits surge today amid MPs’ complaints that energy firms are ‘fleecing’ customers.

The company’s parent Centrica has indicated that profits for 2016 will be higher than originally forecast, meaning they could top £1.4billion.

The knowledge that Britain’s biggest energy firm is cashing in while millions of people struggle to pay for heat and light will trigger outrage.

MPs on the business and energy select committee yesterday laid into the industry. They complained that energy giants are profiting from the expensive standard variable tariffs that two in three households are sitting on.

These families could save £200 to £300 a year by switching to a cheaper fixed rate deal but millions are failing to do so because they do not trust the firms to give them a fair deal. As a result, consumers are effectively being overcharged by £1.4billion a year, according to an investigation by the Competition & Markets Authority.

Despite this, a number of companies including Npower, EDF and Scottish, have made the situation even worse with their recent inflation-busting price rises.

Energy UK boss Lawrence Slade, who represents the big power firms, was challenged by the select committee MPs.

Labour MP Anna Turley said families are fed up with being ripped off and told they have to play the energy market to make sure they get a fair price. ‘Why should people have to keep changing their bills, keep looking at their energy prices... and having to protect themselves from being ripped off?’ she said.

Committee chairman, Labour MP Iain Wright, said customers are being ‘fleeced’.

He said some firms are ‘failing’ and asked: ‘Do you think some of your members are quite poor companies in respect of they are not very efficient, they are not very customer focused?’

Mr Slade said companies are trying to make it as easy as possible for people to switch supplier and save money. He blamed government green levies and the cost of installing smart meters for driving up prices, which could account for £120 to £140 of annual bills next year.

The boss of energy regulator Ofgem, Dermot Nolan, told MPs that steep price rises across the board are not justified.

He blamed inefficiency as one reason for the higher charges and said: ‘I agree that the market is not working effectively.’

But he added that Ofgem does not have the power to enforce price changes.

Co- operative Energy is to increase the cost of its standard variable tariff by an average of 5 per cent from April 1.