CENTRICA fuelled anger over energy bills today by revealing its Scottish Gas residential arm made profits of £595 million last year – up 58% on 2008.
The group said British Gas, which trades as Scottish Gas north of the border and is the UK’s biggest energy supplier, achieved the profits haul due to the addition of 141,000 gas and electricity customers and following operational improvements.
The result came amid mounting concern that utility firms were not quick enough to pass on falls in wholesale gas prices last year.
Centrica revealed a 7% drop in total group underlying operating profits to £1.86 billion as declines in wholesale gas prices saw dwindling returns from its upstream production business.
Centrica said it realised 2009 was a “difficult year for many of our customers”.
Industry watchdog Ofgem said that energy firms have boosted margins by £30 for each typical dual fuel customer in the last three months as wholesale energy costs fall.
Scottish Gas claimed the average dual fuel customer paid £23 more last year.
Scottish Gas has 15.7m energy customers in the UK after seeing the fastest rate of annual customer growth since 2003.
GMB union spokesman Gary Smith called on the Government to look at redirecting some of the profits to help vulnerable and needy energy users. “There should be lower tariffs for these consumers,” he added.
Nick Luff, finance director of Centrica, said most of January’s profits were passed on to customers through the 7% gas price cut.
Scottish Gas defended its pricing in the face of criticism, saying there is a lag between wholesale cost movements and retail bills.
“We have to buy months in advance and the wholesale movements in price take a while to flow through to retail prices,” said Mr Luff.