Morning:
13°c
Cold winter warms up British Gas performance
11.05.09
BRITISH Gas today admitted that last week's 10% cut in household electricity prices only came after the business had had an excellent winter from the nation turning up the heating to beat the cold.
Underlying gas and electricity consumption has been down in the last year as high prices and the recession bite household finances.
However, Centrica's chairman Roger Carr told shareholders at today's annual meeting: "Centrica has performed well in the year to date due mainly to the combination of cold weather which increased demand for gas and power."
That puts Centrica on course to beating last year's £1.94 billion of operating profits, the company admitted.
British Gas has conceded its market-leading February cut of 10% in gas prices has not wooed back customers.
It is understood that since the turn of the year British Gas has won 40,000 new electricity customers (despite not cutting prices until last week) yet lost more than that figure in gas customers.
