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British Gas blame the weather for making profit !

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British Gas blame the weather for making profit !

A spokesperson (man) was on BBC news this morning trying to explain that British Gas actually made a loss over the winter period, but the figures show a 11% increase in the Gas profits.... when challenged about that he said that is wasn`t due to the fact that prices had been hiked in November, but more due to the fact of the weather being colder and people using more gas !...
And then " We made just under £50 profit per customer household"...
http://www.bbc.co.uk/news/business-21598504
19 REPLIES
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Re: British Gas blame the weather for making profit !

He also said that the price hike last November was too late to have been included in the current profits!

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Razer
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Re: British Gas blame the weather for making profit !

Well it would be novel for any spokesperson from a profit making company to blatantly say 'yes, we made money off you and that's what we're all about'. On the other hand, I get just as bemused by people who seem to be shocked by a profit making company making profit.
beeceegee
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Re: British Gas blame the weather for making profit !

Just listened to the interview - I didn't hear mention of a "loss over the winter period", but a "fall in profit margin per household" to £50. A price increase in November won't have a major immediate effect on profits - it's only a month or so of the financial year and many customers will be on fixed tariffs anyway.
Energy is no different to anything else - you use more, you pay more. Making the energy supply tree-huggingly friendly is frighteningly expensive, and the cost can only come from profits.
The examples they quoted just sounded bizarre - an old boy paying £50 a week for gasHuh I have a 4 bed house and pay half that for oil and electric together. I suspect we don't have the full story.
I know I sound like a British Gas fanboy, but business is business; it is wrong to focus solely on "profits of £x billion". British Gas is a huge outfit, all the numbers are huge. You wouldn't argue with the corner shop making £5 out of every £100 sale, it's no different scaled up to big corporations
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Re: British Gas blame the weather for making profit !

For once... No comment  Crazy
I need a new signature... i'm bored of the old one!
kmilburn
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Re: British Gas blame the weather for making profit !

What I want to know with all this,  is how come the media concentrate on the residential supplier profits while ignoring the group profits.
We keep getting told that our prices have to go up becuase of the wholesale price rises, yet,  the same groups invariably control both parties.
British Gas put up their prices becuase the wholesale prices have risen,  yet Centrica (as a wholesaler) have direct influence of the wholesale price.
EDF complained recently that their residential front made a loss, yet their nuclear generation plants made bumper profits..

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Re: British Gas blame the weather for making profit !

£50 per household doesn't seem an excessive profit to me.  A business has to make profit to invest in their future expansion.
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Re: British Gas blame the weather for making profit !

I partially agree. £50 per home doesn't seem a lot really. I think PN make less than that per connection.
What I disagree with is the bit about future expansion. It's supposed to be a competitive market and there isn't any new landmass or energy resources available. How are they going to expand? - What about when they serve every home across the planet .. what then?
Expansion is over rated if you ask me. There is not an infinite amount of custom to be had.
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Razer
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Re: British Gas blame the weather for making profit !

If only they realised:
Cheaper fuel=
More heated people=
More breeding=
More people to buy more fuel=
More profits.
Community Veteran
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Re: British Gas blame the weather for making profit !

It is why in our new house we're installing a wood pellet boiler for the water/central heating and are also buying more shares in Centrica.to boost pension.
The wood pellets are slightly cheaper than gas per kwh at the moment (about 1/3 the price of electricity; 2/3 price of heating oil), this differential will get "better" as the price of fossil fuels increase.
Now Zen, but a +Net residue.
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Re: British Gas blame the weather for making profit !

But where do you get the pellets, first time I have heard of them. Is it fed from a hopper you have to keep topped up or some other method.
Having grown up in wood fire homes I know what it is like to have to chop wood for the fire every day - that and keeping it dry much prefer gas.
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Re: British Gas blame the weather for making profit !

Chopping wood for fires..... ah yes, I remember it well......  Freezing cold day... big pile of wood to chop... big store to fill... chop chop chop chop chop... all morning long,,,, keeps you warm... ( saves on the heating bill...) Out in the fresh air.... hear the birds singing....  keeps you fit.... ( hurts your back like hell)... makes you strong in the arm.... for carrying logs to the store and stacking... keeps you on the move,... keeps you warem.... makes you hungry, .... appreciate a cuppa... and some lunch when you have stacked it all nice and tidy.....etc etc...

Cheesy I loved it  Cheesy
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Re: British Gas blame the weather for making profit !

I’m not against BG making £50 profit per household providing a fair percentage of that profit goes to securing energy supplies for the future and is not en-block distributed to shareholders.
Unlike some (EU owned), British energy companies who are currently making no provisions for future energy demands.
We’ve a good reliable energy supply now because of the infrastructure put in place during the Callaghan/Thatcher/Major years and from the proceeds of North Sea Oil.
Blair/Brown did very little and Cameron hasn’t done much yet.
Quote from: Hairy
Having grown up in wood fire homes I know what it is like to have to chop wood for the fire every day.

Edit in view of Shutter's post ..........Old Derbyshire Portsmouth saying:- “he who chops wood gets warm twice”
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Re: British Gas blame the weather for making profit !

Quote from: journeys

Having grown up in wood fire homes I know what it is like to have to chop wood for the fire every day.

Edit in view of Shutter's post ..........Old Derbyshire Portsmouth saying:- “he who chops wood gets warm twice”

Yeah, My sentiments exactly... !  Smiley
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Re: British Gas blame the weather for making profit !

Quote from: Hairy
But where do you get the pellets,...

They come from UK sources and also imported and are delivered by distributors. The suppliers have pelleting machines which crunch up wood, dry it and press it into pellets. it takes just about any wood either from purpose grown, perhaps biomass pollarding, or as a by-product from timber industries, The good quality stuff is smokeless in correctly designed stoves/boilers and creates very little ash.Generally they are about 90% efficient.
You can buy the pellets in poly bags or bulk delivery. The feed mechanism is to either tip a bag into a hopper on the top of the boiler or to have a mechanical feed such as a screw feed from a bin or a suction feed. I believe there are schemes where you can claim money back for the heat energy generated by the systems up to 9p per KWh.
Just google "wood pellet boilers" and you'll soon be swamped with info.  We're probably going for a Baxi system with a 800 litre thermal buffer (insulated water tank).
Now Zen, but a +Net residue.