Money News
1st August 2008
Profits announcement sparks fresh criticism of British Gas
Criticism of British Gas' decision to hike its tariffs mounted today after its parent company Centrica announced huge operating profits.
On Tuesday, the energy giant confirmed it is increasing its gas and electricity prices by 35 per cent and nine per cent respectively.
The firm cited higher wholesale energy costs as justification for the move.
However, Centrica, the firm's parent, has since announced annual profits of almost £1 billion, adding further fuel to consumers' complaints over the hikes.
Adam Scorer, campaigns director at consumer watchdog, energywatch, told the Guardian: "British Gas customers, still reeling from 35 per cent price hikes, might have expected Centrica to be losing money. They will be staggered at the rude health of Centrica's half-year profit.
"Customers will be outraged to learn that while they ponder how to make ends meet Centrica's shareholders are enjoying an increase in their dividends."
Consumer groups have predicted that soaring energy prices will push millions of people into fuel poverty this year.
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