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British Gas profits spark hopes of cuts in energy bills | Business | guardian.co.uk
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Photograph: Owen Humphreys/PA Wire</p> </div> <p><strong></strong>British Gas customers face higher bills this winter because of fears that another <a href="http://web.archive.org/web/20090802145713/http://www.guardian.co.uk/world/2009/jun/01/russia-ukraine-gas-eu-supplies" title="Russia/Ukraine dispute">dispute over supplies between </a> <a href="http://web.archive.org/web/20090802145713/http://www.guardian.co.uk/world/russia">Russia</a> and <a href="http://web.archive.org/web/20090802145713/http://www.guardian.co.uk/world/ukraine">Ukraine</a> this winter will drive up prices, its parent company said today.</p><p><a href="http://web.archive.org/web/20090802145713/http://www.guardian.co.uk/business/centrica">Centrica</a> chief executive Sam Laidlaw said that the ongoing row between the former Soviet states was likely to flare up again this year. Last winter, gas bound for Britain was <a href="http://web.archive.org/web/20090802145713/http://www.guardian.co.uk/business/2008/dec/30/russia-ukraine-gazprom-gas" title="Winter gas dispute">diverted to keep central and eastern Europe supplied</a> during the row, which drove up prices.</p><p>He said that there was some scepticism over reports this summer that Ukraine had properly replenished its gas storage facilities, which western Europe relies on during the winter.</p><p>"Some people say the storage facilities are reasonably well replenished," he told the Guardian. "Others say that the deals which have been done are just paper deals not physical ones so they are not as full as we would like them to be. There has to be a risk that any gas in storage is used for domestic customers and not to export to western Europe. It's still a problem which has not gone away."</p><p>The warning came as British Gas, Britain's largest energy supplier, announced that profits have soared by 80%.</p><p>British Gas made profits of £299m in the first six months of the year, compared with £166m last year, because the cost of supplying electricity and gas to its customers fell.</p><p>Ann Robinson, energy expert at uSwitch.com, said that the high profits meant that households could see a cut in their bills in the future. But Nick Luff, finance director, said British Gas's small profit last year explained the dramatic rise this time round. "Unless Centrica is a profitable business we will not be able to make the scale of investments necessary to help decarbonise the economy," he added.</p><p>Centrica's group operating profits fell 5% on last year to £936m. The group's earnings after tax were £537m, up 28%, because Centrica paid much less tax this year. Because of lower commodity prices, it made the bulk of its profits from its gas and electricity supply business, rather than its heavily taxed North Sea upstream gas operations.</p><p>Laidlaw also said that it was in talks to buy other North Sea gas fields if its <a href="http://web.archive.org/web/20090802145713/http://www.guardian.co.uk/business/marketforceslive/2009/jul/13/centrica-ventureproduction" title="Centrica buys Venture shares">£1.3bn takeover bid</a> for <a href="http://web.archive.org/web/20090802145713/http://www.guardian.co.uk/business/ventureproduction">Venture Production</a> was rejected by shareholders.</p><p>Laidlaw reiterated that the company's 845p-a-share offer was final, unless a rival bidder emerged. He added that Centrica was also looking at alternative deals, putting further pressure on Venture's shareholders to accept the offer by the 13 August deadline.</p><p>"It's not a deal we have to do," he said. 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toggle.getElementsByTagName('a'); for (var i = 0; i < as.length; i++) { as[i].onclick = function() { var allLinks = document.getElementById('finance-guides-nav').getElementsByTagName('a'); for (var ii = 0; ii < allLinks.length; ii++) { allLinks[ii].className = "inactive"; } show(this); this.className = ""; return false; } } } function show(s) { hide(); var id = s.href.match(/#(\w.+)/)[1]; document.getElementById(id).style.display = 'block'; } function hide() { var toggleable = document.getElementById('finance-guides').getElementsByTagName('div'); for (var i = 0; i < toggleable.length; i++) { var divClass = toggleable[i].className; if(divClass.match(/finance-pane/)) { toggleable[i].style.display = 'none'; } } } function initFinanceTab(){ document.getElementById('finance-pane-anchor-0').onclick(); } //]]> </script> <div class="capsule"> <h3>Our selection of best buys</h3> <ul id="finance-guides-nav" class="tab-toggle"> <li><a id="finance-pane-anchor-0" href="#finance-pane-0">Mortgages<b></b></a></li> <li><a id="finance-pane-anchor-1" href="#finance-pane-1">Credit cards<b></b></a></li> <li><a id="finance-pane-anchor-2" href="#finance-pane-2">Loans<b></b></a></li> </ul> <div id="finance-guides" class="trailblock"> <div id="finance-pane-0" class="finance-pane active-pane"> <div class="finance-table"> <table id="mortgage-table"> <col class="title"/> <col class="rate"/> <col class="more-info"/> <thead> <tr> <th scope="col">Lender</th> <th scope="col">Initial rate</th> <td></td> </tr> </thead> <tbody> <tr> <th scope="row" class="finance-row">First Direct</th> <td>2.98%</td> <td id="1.moreInfo"> <a href="http://web.archive.org/web/20090802145713/http://guardian.lcplc-online.co.uk/BestBuy.aspx?GUProdID=3667&Type=F" name="&lid={compareAndBuyPromo}{First Direct|link|Business}&lpos={compareAndBuyPromo}{1}"> More </a> </td> </tr> <tr> <th scope="row" class="finance-row">Yorkshire BS</th> <td>3.99%</td> <td id="2.moreInfo"> <a href="http://web.archive.org/web/20090802145713/http://guardian.lcplc-online.co.uk/BestBuy.aspx?GUProdID=3350&Type=F" name="&lid={compareAndBuyPromo}{Yorkshire BS|link|Business}&lpos={compareAndBuyPromo}{2}"> More </a> </td> </tr> <tr> <th scope="row" class="finance-row">First Direct</th> <td>2.98%</td> <td id="3.moreInfo"> <a href="http://web.archive.org/web/20090802145713/http://guardian.lcplc-online.co.uk/BestBuy.aspx?GUProdID=3667&Type=V" name="&lid={compareAndBuyPromo}{First Direct|link|Business}&lpos={compareAndBuyPromo}{3}"> More </a> </td> </tr> </tbody> </table> </div> <ul> <li class="link info"> <a href="http://web.archive.org/web/20090802145713/http://guardian.lcplc-online.co.uk/bestbuy.aspx" name="&lid={compareAndBuyPromo}{See more mortgage best buys|link|Business}&lpos={compareAndBuyPromo}{4}"> See more mortgage best buys </a> </li> <li class="link bullet"> <a href="http://web.archive.org/web/20090802145713/http://guardian.lcplc-online.co.uk/Wizard1.aspx" name="&lid={compareAndBuyPromo}{Get a personal quote|link|Business}&lpos={compareAndBuyPromo}{5}"> Get a personal quote </a> </li> </ul> </div> <div id="finance-pane-1" class="finance-pane"> <div class="finance-table"> <table id="credit-card-table"> <col class="title"/> <col class="rate"/> <col class="more-info"/> <thead> <tr> <th scope="col">Name</th> <th scope="col">BT Rate</th> <th scope="col">BT Period</th> <th scope="col"></th> </tr> </thead> <tbody> <tr> <th scope="row" class="finance-row">Virgin Credit Card</th> <td>0%</td> <td>16 mths</td> <td id="1.moreInfo"> <a href="http://web.archive.org/web/20090802145713/http://www.moneysupermarket.com/CardsP/DoIQualifyExternal.asp?CardID=671&ProviderID=790&Source=GU07&BestBuy=1&Url=http://ad.uk.doubleclick.net/clk;207240094;29508258;g?http://uk.virginmoney.com/credit-cards/?source=MSP-AGG-50562-55903~amp~targetURL=/virgin/credit-cards-v7&CatID=163" name="&lid={compareAndBuyPromo}{Virgin Credit Card|link|Business}&lpos={compareAndBuyPromo}{6}"> More </a> </td> </tr> <tr> <th scope="row" class="finance-row">NatWest Platinum</th> <td>0%</td> <td>15 mths</td> <td id="2.moreInfo"> <a href="http://web.archive.org/web/20090802145713/http://www.moneysupermarket.com/CardsP/DoIQualifyExternal.asp?CardID=1224&ProviderID=352&Source=GU07&BestBuy=1&Url=http://clk.atdmt.com/NAT/go/136621154/direct/01/&CatID=163" name="&lid={compareAndBuyPromo}{NatWest Platinum|link|Business}&lpos={compareAndBuyPromo}{7}"> More </a> </td> </tr> <tr> <th scope="row" class="finance-row">MBNA Platinum</th> <td>0%</td> <td>Until 01/09/2010</td> <td id="3.moreInfo"> <a href="http://web.archive.org/web/20090802145713/http://www.moneysupermarket.com/CardsP/DoIQualifyExternal.asp?CardID=1300&ProviderID=553&Source=GU07&BestBuy=1&Url=http://ad.uk.doubleclick.net/clk;215283360;37415498;k&CatID=163" name="&lid={compareAndBuyPromo}{MBNA Platinum|link|Business}&lpos={compareAndBuyPromo}{8}"> More </a> </td> </tr> </tbody> </table> </div> <ul> <li class="link info"> <a href="http://web.archive.org/web/20090802145713/http://www.moneysupermarket.com/link.asp?Source=GU07&Section=cardsbestbuys" name="&lid={compareAndBuyPromo}{See more credit cards best buys|link|Business}&lpos={compareAndBuyPromo}{9}"> See more credit cards best buys </a> </li> <li class="link bullet"> <a href="http://web.archive.org/web/20090802145713/http://www.moneysupermarket.com/link.asp?Source=GU07&Section=cards" name="&lid={compareAndBuyPromo}{Compare over 300 credit cards|link|Business}&lpos={compareAndBuyPromo}{10}"> Compare over 300 credit cards </a> </li> </ul> </div> <div id="finance-pane-2" class="finance-pane"> <div class="finance-table"> <table id="loan-table"> <col class="title"/> <col class="rate"/> <col class="more-info"/> <thead> <tr> <th scope="col">Provider</th> <th scope="col">Typical APR</th> <th scope="col"></th> </tr> </thead> <tbody> <tr> <th scope="row" class="finance-row">Sainsbury's Personal Loan</th> <td>7.9%</td> <td id="1.moreInfo"> <a href="http://web.archive.org/web/20090802145713/http://www.moneysupermarket.com/loansp/LoansExternalDb_new.asp?LoansId=1562&BestBuy=1&Source=GU07&Url=http://www.sainsburysbank.co.uk/borrowing/micro/bor_loans_ms_apply.shtml?source=NETMSBBDLOANMSIT0001" name="&lid={compareAndBuyPromo}{Sainsburys Personal Loan|link|Business}&lpos={compareAndBuyPromo}{11}"> More </a> </td> </tr> </tbody> </table> </div> <ul> <li class="link info"> <a href="http://web.archive.org/web/20090802145713/http://www.moneysupermarket.com/link.asp?Source=GU07&Section=loansbestbuys" name="&lid={compareAndBuyPromo}{See more loan best buys|link|Business}&lpos={compareAndBuyPromo}{12}"> See more loan best buys </a> </li> <li class="link bullet"> <a href="http://web.archive.org/web/20090802145713/http://www.moneysupermarket.com/link.asp?Source=GU07&Section=loans" name="&lid={compareAndBuyPromo}{Compare over 500 loan providers|link|Business}&lpos={compareAndBuyPromo}{13}"> Compare 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hb_find_a_house(buyOrRent, position) { _hbLink('{find a house}{'+ buyOrRent +'|Business}','{find a house}{'+ position +'}'); return true; } if (document.getElementById && document.getElementsByTagName && document.createTextNode) { addEvent(window, "load", initShowProperty); } function initShowProperty() { var toggleProperty = document.getElementById('find-a-property'); var propertyTabs = toggleProperty.getElementsByTagName('a'); for (var i = 0; i < propertyTabs.length; i++) { propertyTabs[i].onclick = function() { showPropertyTab(this); return false; } } } function showPropertyTab(s) { hidePropertyTab(); var id = s.href.match(/#(\w.+)/)[1]; document.getElementById(id).style.display = 'block'; } function hidePropertyTab() { var toggleable = document.getElementById('toggleable').getElementsByTagName('div'); for (var i = 0; i < toggleable.length; i++) { toggleable[i].style.display = 'none'; } } //]]> </script> <div id="find-a-property"> <ul class="tab-toggle"> <li> <a href="#find-a-house-to-buy">Buy<b></b></a> </li> <li> <a href="#find-a-house-to-rent" class="inactive">Rent<b></b></a> </li> </ul> <div id="toggleable"> <div id="find-a-house-to-buy"> <form onsubmit="hb_find_a_house('buy', 1)" target="_top" method="post" action="http://web.archive.org/web/20090802145713/http://www.thinkproperty.com/guardian/property/search" id="propertysearchform"> <fieldset> <legend>Buy</legend> <p> <label for="geo">Location:</label> <input name="geo" id="geo" type="text"/> <input name="aliasid" id="alias" value="0" type="hidden"/> </p> <p> <label for="lop">Minimum price:</label> <select name="lop"> <option value="20000">£20,000</option> <option value="30000">£30,000</option> <option value="40000">£40,000</option> <option value="50000">£50,000</option> <option value="60000">£60,000</option> <option value="70000">£70,000</option> <option value="80000">£80,000</option> <option value="90000">£90,000</option> <option value="100000">£100,000</option> <option value="110000">£110,000</option> <option value="120000">£120,000</option> <option value="130000">£130,000</option> <option value="140000">£140,000</option> <option value="150000">£150,000</option> <option value="160000">£160,000</option> <option value="170000">£170,000</option> <option value="180000">£180,000</option> <option value="190000">£190,000</option> <option value="200000">£200,000</option> <option value="225000">£225,000</option> <option value="250000">£250,000</option> <option value="275000">£275,000</option> <option value="300000">£300,000</option> <option value="325000">£325,000</option> <option value="350000">£350,000</option> <option value="375000">£375,000</option> <option value="400000">£400,000</option> <option value="425000">£425,000</option> <option value="450000">£450,000</option> <option value="475000">£475,000</option> <option value="500000">£500,000</option> <option value="600000">£600,000</option> <option value="700000">£700,000</option> <option value="800000">£800,000</option> <option value="900000">£900,000</option> <option value="1000000">£1,000,000</option> <option value="1100000">£1,100,000</option> <option value="1200000">£1,200,000</option> <option value="1300000">£1,300,000</option> <option value="1400000">£1,400,000</option> <option value="1500000">£1,500,000</option> <option value="1600000">£1,600,000</option> <option value="1700000">£1,700,000</option> <option value="1800000">£1,800,000</option> <option value="1900000">£1,900,000</option> <option value="2000000">£2,000,000</option> <option value="2100000">£2,100,000</option> <option value="2200000">£2,200,000</option> <option value="2300000">£2,300,000</option> <option value="2400000">£2,400,000</option> <option value="2500000">£2,500,000</option> <option value="2600000">£2,600,000</option> <option value="2700000">£2,700,000</option> <option value="2800000">£2,800,000</option> <option value="3000000">£3,000,000</option> </select> </p> <p> <label for="hip">Maximum price:</label> <select name="hip"> <option value="20000">£20,000</option> <option value="30000">£30,000</option> <option value="40000">£40,000</option> <option value="50000">£50,000</option> <option value="60000">£60,000</option> <option value="70000">£70,000</option> <option value="80000">£80,000</option> <option value="90000">£90,000</option> <option value="100000">£100,000</option> <option value="110000">£110,000</option> <option value="120000">£120,000</option> <option value="130000">£130,000</option> <option value="140000">£140,000</option> <option value="150000">£150,000</option> <option value="160000">£160,000</option> <option value="170000">£170,000</option> <option value="180000">£180,000</option> <option value="190000">£190,000</option> <option value="200000">£200,000</option> <option value="225000">£225,000</option> <option value="250000">£250,000</option> <option value="275000">£275,000</option> <option value="300000">£300,000</option> <option value="325000">£325,000</option> <option value="350000">£350,000</option> <option value="375000">£375,000</option> <option value="400000">£400,000</option> <option value="425000">£425,000</option> <option value="450000">£450,000</option> <option value="475000">£475,000</option> <option value="500000">£500,000</option> <option value="600000">£600,000</option> <option value="700000">£700,000</option> <option value="800000">£800,000</option> <option value="900000">£900,000</option> <option value="1000000">£1,000,000</option> <option value="1100000">£1,100,000</option> <option value="1200000">£1,200,000</option> <option value="1300000">£1,300,000</option> <option value="1400000">£1,400,000</option> <option value="1500000">£1,500,000</option> <option value="1600000">£1,600,000</option> <option value="1700000">£1,700,000</option> <option value="1800000">£1,800,000</option> <option value="1900000">£1,900,000</option> <option value="2000000">£2,000,000</option> <option value="2100000">£2,100,000</option> <option value="2200000">£2,200,000</option> <option value="2300000">£2,300,000</option> <option value="2400000">£2,400,000</option> <option value="2500000">£2,500,000</option> <option value="2600000">£2,600,000</option> <option value="2700000">£2,700,000</option> <option value="2800000">£2,800,000</option> <option value="3000000" selected="selected">£3,000,000+</option> </select> </p> <p> <label for="bed">Min bedrooms:</label> <select name="bed" id="bed"> <option value="0" selected="selected">No preference</option> <option value="1">1+</option> <option value="2">2+</option> <option value="3">3+</option> <option value="4">4+</option> <option value="5">5+</option> </select> <input name="dbtype" value="1" type="hidden"/> </p> <p class="results"> <input name="submit" id="searchnow" title="Search for properties" value="Search now" type="submit"/> </p> </fieldset> </form> </div> <div id="find-a-house-to-rent" class="initially-off"> <form onsubmit="hb_find_a_house('rent', 2)" target="_top" method="post" action="http://web.archive.org/web/20090802145713/http://www.thinkproperty.com/guardian/property/search" id="propertysearchform"> <fieldset> <legend>Rent</legend> <p> <label for="geo">Location:</label> <input name="geo" id="geo" type="text"/> <input name="aliasid" id="alias" value="0" type="hidden"/> </p> <p> <label for="lop">Minimum price:</label> <select name="lop"> <option value="0" selected="selected">£0 pcm</option> <option value="100">£100 pcm</option> <option value="200">£200 pcm</option> <option value="300">£300 pcm</option> <option value="400">£400 pcm</option> <option value="500">£500 pcm</option> <option value="600">£600 pcm</option> <option value="700">£700 pcm</option> <option value="800">£800 pcm</option> <option value="900">£900 pcm</option> <option value="1000">£1,000 pcm</option> <option value="1250">£1,250 pcm</option> <option value="1500">£1,500 pcm</option> <option value="1750">£1,750 pcm</option> <option value="2000">£2,000 pcm</option> <option value="3000">£3,000 pcm</option> <option value="4000">£4,000 pcm</option> <option value="5000">£5,000 pcm</option> <option value="6000">£6,000 pcm</option> <option value="7000">£7,000 pcm</option> <option value="8000">£8,000 pcm</option> <option value="10000">£10,000 pcm</option> </select> </p> <p> <label for="hip">Maximum price:</label> <select name="hip"> <option value="0">£0 pcm</option> <option value="100">£100 pcm</option> <option value="200">£200 pcm</option> <option value="300">£300 pcm</option> <option value="400">£400 pcm</option> <option value="500">£500 pcm</option> <option value="600">£600 pcm</option> <option value="700">£700 pcm</option> <option value="800">£800 pcm</option> <option value="900">£900 pcm</option> <option value="1000">£1,000 pcm</option> <option value="1250">£1,250 pcm</option> <option value="1500">£1,500 pcm</option> <option value="1750">£1,750 pcm</option> <option value="2000">£2,000 pcm</option> <option value="3000">£3,000 pcm</option> <option value="4000">£4,000 pcm</option> <option value="5000">£5,000 pcm</option> <option value="6000">£6,000 pcm</option> <option value="7000">£7,000 pcm</option> <option value="8000">£8,000 pcm</option> <option value="10000" selected="selected">£10,000 pcm</option> </select> </p> <p> <label for="bed">Min bedrooms: </label> <select name="bed" id="bed"> <option value="0" selected="selected">No preference</option> <option value="1">1+</option> <option value="2">2+</option> <option value="3">3+</option> <option value="4">4+</option> <option value="5">5+</option> </select> <input name="dbtype" value="2" type="hidden"/> </p> <p> <input name="submit" id="searchnow" title="Search for properties" value="Search now" type="submit"/> </p> </fieldset> </form> </div> </div> <p>Powered by <img src="http://web.archive.org/web/20090802145713im_/http://static.guim.co.uk/static/77051/common/images/thinkproperty-logo.gif" alt="thinkproperty.com" 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Commissioning</a></h4> <p><span class="employer">doncaster metropolitan borough council.</span> <span class="location">the pace of change and improvement is going to inc….</span> <span class="wage">Not specified.</span> </p> </li> <li class="odd"><h4> <a href="http://web.archive.org/web/20090802145713/http://jobs.guardian.co.uk/job/888723/multi-lingual-transcreation-manager?RSSSearch=0&gusrc=gu_jobs_box_Business&link=Business_jbx_vac" name="&lid={jobsBox}{MULTI-LINGUAL TRANSCREATION MANAGER|Business}&lpos={jobsBox}{4}">MULTI-LINGUAL TRANSCREATION MANAGER</a></h4> <p><span class="employer">christopher keats.</span> <span class="location">london.</span> <span class="wage">Competitive salary and excellent package.</span> </p> </li> </ul> <script type="text/javascript"> //<![CDATA[ function doSearchAllSubmitUK( form ) { var jobsSectionToSearch = 'business'; var freeText = 'senior executive'; var searchTextField = document.getElementById( 'freetext-searchalljobs' ); var keywordElem = 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