Scottish Gas owner has its feet held to the fire

0 Centrica has been impacted by falling business custom on both sides of the Atlantic The owner of Scottish Gas will reveal the financial impact this week of shedding British and US business customers as annual profits are expected to have slumped about £200 mil‑ lion to £1.3 billion last year.

Centrica, which reports on Thursday, jolted the mar‑ ket with a profit warning last November that sent its shares down to levels not seen since 2003.

Analysts believe that earn‑ ings at its North American division could have fallen up to £140 million in 2017 amid ris‑ ing competition and warmer weather.

Iain Conn, Centrica’s chief executive, branded the busi‑ ness energy supply business “disappointing” last Novem‑ ber, with “significant market pressures” across the Atlantic.

He also said the company had yet to see improved oper‑ ational performance of the UK business translating into bet‑ ter earnings.

Centrica, along with its big five UK rivals, is facing a price cap on energy bills for 11 mil‑ lion UK households from 2019.