Business

British Gas profits soar by 889% (but not for the reason you might think)

The parent company of British Gas has revealed half-year profits for its UK household supply arm that are up by almost 900%.

Centrica said that underlying earnings at British Gas rose to £969m compared to the £98 million achieved a year earlier.

It said that the bulk of the growth, however, was not down to any trading windfall from high energy prices but a reduction in debt-related costs.

Energy regulator Ofgem’s price cap provides an allowance to account for debt on energy bills that cannot be recovered by suppliers and is ultimately written off.

Centrica said this meant that some £500m was brought under the scheme during the first six months of the year.

Articles You May Like

Oil prices little changed as U.S. moves to replenish reserve, Gaza cease-fire still uncertain
Saudi Aramco upholds dividend despite drop in first-quarter profits
In the EV future, Thailand, the ‘Detroit of Asia,’ could be a key China hedge for automakers
Exxon CEO says dispute with Chevron over Hess Guyana oil assets could drag into 2025
Microsoft signs deal with Swedish partner to remove 3.3 million metric tons of carbon dioxide