British Gas in profits bonanza

BRITISH Gas’s profit margins are 60% above the industry average, figures from the regulator Ofgem have revealed.

The biggest energy supplier made the equivalent of £71.80 on the average £1,000 gas and electricity bill, compared with an average of £44.80 across the Big Six suppliers.

British Gas will increase its electricity prices by 12.5% on September 15.

The figures also reveal that the gap between prices charged by the Big Six and the market’s cheapest deals rose to an average of £300 a year in July.

The average annual gas and electricity bill is £1,142, but the number of households switching to a cheaper electricity deal fell in the early part of the summer, and big suppliers still have a stranglehold on the market, said Ofgem.

EDF and Npower made a loss on their domestic supply arms last year.