£2BN GAS BILLS GAP
FATCAT energy bosses are sitting on almost £2billion a year of profits – by still refusing to cut bills in line with wholesale prices which have fallen by 29%.
British Gas owner Centrica will announce its 2014 results next month. Analysts predict group profits of £1.9billion – down on last year’s £2.7billion after a relatively mild 2014 led to lower central heating use.
But the firm remains well in the black because an estimated £144 per family saving on the average £1,225 dual fuel bill has not yet been passed on to the 15 million British Gas customers due it.
Wholesale gas prices have slumped 29% and electricity by 14% since energy firms last increased prices in November 2013.
The wholesale cost makes up half of the retail price so experts say a 14½% cut for gas and a 6% cut for electricity is possible. So far just one major firm, E.on, has cut its prices – and only by 3½%. Mark Todd of Energyhelpline said: “If British Gas cut bills the others will follow.”
Suppliers will make £103 profit per household this year, compared with £48 in 2013, says regulator Ofgem.
Labour’s Shadow Energy Secretary Caroline Flint said: “These bonanza profits show why the Tories and Lib Dems were so wrong to vote against Labour’s plans to give the regulator the power to cut prices.”
Centrica would not comment on profits but added: “We always aim to keep prices as low as possible.”