British Gas profits almost double in six months

British Gas profits rose by 98% in the first half of 2010, figures today have shown.

The energy giant’s operating profits, which increased from £295 million to £585 million, are largely a result of the freezing weather the UK experienced in the first quarter of the year, according to parent company Centrica.

The cold winter meant that although customers were being more energy-efficient, gas consumption still rose by 8% during the first six months of the year.

The company also added 223,000 new customers after it cut its gas prices in February. This means its total number of customers is now 15.79 million.

However, with the warmer weather and wholesale gas prices now rising again, after almost halving since their peak in 2008, any further price cuts look unlikely.

In its report, the company said: ‘Overall, we expect the full year results for 2010 to be heavily weighted towards the first half of the year’.

Yet, according to uSwitch.com, the large increase in British Gas profits is proof that energy bills will not rise this year.

Ann Robinson, director of consumer policy at uSwitch.com, said: ‘This announcement is good news for consumers as it lays to rest speculation that household energy prices will be increasing soon’.

‘While there is a lack of transparency surrounding wholesale prices, there is no such ambiguity about large profits. And in this instance the 98% year-on-year increase in British Gas Residential’s operating profits really does speak volumes,’ she added.

Robinson said that with wholesale prices still comparatively low compared with 2008, when household energy prices rocketed by 42%, suppliers could actually afford to cut their prices again.