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MSE News: British Gas owner posts £1.3bn profit, so why the price hikes?
Former_MSE_Helen
Posts: 2,382 Forumite
in Energy
This is the discussion thread for the following MSE News Story:
"Centrica today reveals it made a massive half-year profit just weeks after British Gas price hikes were announced ..."
"Centrica today reveals it made a massive half-year profit just weeks after British Gas price hikes were announced ..."
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Surely in your 'Key Points' bar, British Gas' profit is every bit as important as Centricas. Or is it only fun to hilight the really big numbers?I am an employee of British Gas, however the views expressed on this post are mine and do not necessarily reflect the views of Centrica, its subsidiaries or affiliated companies.0
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Yes eurmalian but it's the kind of poor journalism we've come to expect from MSE.
My advice is that if you do intend to switch once all of the companies have made their pricing annoucements to do it directly via a cash back site or the energy suppliers site and not through MSE affilliate links.0 -
Quite a silly way to report it!0
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This is the discussion thread for the following MSE News Story:
"Centrica today reveals it made a massive half-year profit just weeks after British Gas price hikes were announced ..."Read the full story:
British Gas owner posts £1.3bn profit, so why the price hikes?
come on MSE......
is the 54% drop in residential profits a hint???
Trying to sensationalize a non sensational storyPromo codes are never always cheaper..... isnt that right EuropCar?0 -
When wholesale prices are high, they make very decent profits on their wholesale business and less on their retail business and vice versa. In effect, no matter what the wholesale price is, the company as a whole can't really lose. I'm surprised no-one has mentioned this on this thread already.0
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Everyone knows that one does not subsidise the other so I'm really disappointed in this Journalism piece. Just over £3 pm profit per customer is not a lot. This is down from last year.Self Employed, Running my Dream Jobs0
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The bizarre thing is the schizophrenic attitude of the "authorities" towards competition. If Centrica were allowed to cross-subsidise British Gas, it could inflict some serious damage on its rivals. But it isn't.
So we have regulators who are supposed to ensure that rivals compete and don't get too cosy. But as soon as somebody tries to exploit a serious competitive advantage, that's called "unfair" competition and the authorities protect the implicit cartel."It will take, five, 10, 15 years to get back to where we need to be. But it's no longer the individual banks that are in the wrong, it's the banking industry as a whole." - Steven Cooper, head of personal and business banking at Barclays, talking to Martin Lewis0 -
MillicentBystander wrote: »When wholesale prices are high, they make very decent profits on their wholesale business and less on their retail business and vice versa. In effect, no matter what the wholesale price is, the company as a whole can't really lose. I'm surprised no-one has mentioned this on this thread already.
Quite true, but don't forget that by law, the generation part of the business cannot subsidise the retail part.
Ofgem did this to ensure fair competition with smaller suppliers who don't have generation capacity.
BG have about 10m customers, I think - so this equates to £27/customer or roughly 0.5% margin. Hardly usury!Says James, in my opinion, there's nothing in this world
Beats a '52 Vincent and a red headed girl0 -
MillicentBystander wrote: »When wholesale prices are high, they make very decent profits on their wholesale business and less on their retail business and vice versa. In effect, no matter what the wholesale price is, the company as a whole can't really lose. I'm surprised no-one has mentioned this on this thread already.
Because such threads are dominated by employees screaming foul play.
Try to avoid. Never gets anywhere.;)0
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