Gassing off

It’s a big day for Centrica, the owners of British Gas, as it announced of a 40% jump in profits. Cue shouts, hoots even, of derision because British Gas put up prices a few weeks ago by 15%. Now I’m as much of a cheapskate as anyone else and want to pay as little as possible for my utilities but it’s really not as simple as some consumer champions might have you believe.
 
Centrica’s profits mainly came from the first half of the year – way before the recent price rises. In fact wholesale prices were falling back then and British Gas reflected this by reducing prices in March and April. It may not have passed on all these falls but they’re a business, not a charity. It also has the future to think about and we should be thankful it is. It needs the extra cash for investment so we might lessen the UK’s reliance on imported gas, which often comes from countries that have a habit of being less stable than one might like. Chief exec Sam Laidlaw told the BBC today:
 
We need to earn a return to invest in new sources of energy for the UK. Centrica is investing £1bn a year in new sources of gas and power... and all of that requires a return.
 
I for one am glad to see someone is thinking ahead of his next gas bill. Finally I’d like to highlight that the loudest voices in this debate often come from websites that let you change supplier, like Uswitch. Tim Wolfenden from that price comparison service said today:
 
Consumers…will be extremely disappointed and will start voting with their feet. 
Really Tim? Where should they go to do this? What? Your website? You mean the website that makes money every time people use it to switch suppliers?