B Gas £2 billion profit shame

Plushchris

1carminestocky wrote: »

The fact is all the profits you mentioned are derived from gas.

Do they sell the electric at cost price then?

SwanJon

OK, a bit of balance.
Assuming that all of Centrica's profits are derived from their 15.6 million British Domestic energy accounts - nothing from
British Domestic Services customers
British Business customers
Spanish SME customers
Belgian customers
Dutch Customers
American Customers
Canadiam Customers
or other activities.
The <£2bn profit equates to £121.21 per account.
While this represents a big chunk, it would still leave the average DF customer with a bill for over £1100 - so there must have been something to the rising prices?
<Carmine blinkers off>

But we all now the world isn't like that, and profit will be derived from all the sectors mentioned above, so the profit per customer will be less. Maybe not as low as the £25 suggested by the domestic profit figures, but nowhere near as high as the £121 above.

Yes, I work for British Gas, but I can't see how that affects the maths above.
This is a moneysaving site, not a rant site. Where is the moneysaving on this thread?
I've seen plenty of complaints that we don't have enough gas storage in Britain and if we want to see more built we'll have to accept that paying fo rthat will come through our bills.

Cardew

Annual ritual time again.

BG make approx £21 from each of its 18 million customers.

However because they are owned by a British firm(Centrica) that owns " BG business, industrial users, their power stations, etc. Then there is also the storage business (another entity) that stores gas for BG residential, but also for other suppliers, traders, etc."

It is convenient for the BG detractors to consider Centrica's £2billion profit as coming solely from BG customers - which works out at approx £100 for each customer.

So 2 questions.

1. If BG completely folded/went out of business/ceased trading and we were supplied by one of the other 'Big 5' how much would our bills reduce?

2. If BG completely folded/went out of business/ceased trading, how much do you think Centrica's profits would suffer?

Edit - hadn't seen the post above when writing this - and i don't work for BG or Centrica!!!!!

Plushchris

To be honest, even if they WERE to make £100 out of every customer per year that is still nothing compared to other companies profit margins, ever wondered how Tescos (other supermarkets are available ) operate? They dont sell you food at cost price, I would hazard a guess that if you regularly shop at one of the big supermarkets they make far more profit out of you than the Gas and Electric companies on stuff that is just as "essential" than gas or electric (I know I could live without lighting or heating but wouldnt last long with no food or bog roll!) but as someone said, we could all live in caves and kill our own food (probably nicer than supermarket rubbish too)

Cardew

Just a further point on the attempt to attribute Centrica’s profits to British Gas and thus the insinuation BG is ripping off its customers

Once again a thread with a misleading title of “British Gas £2 Billion profit shame” – even the dreadful Daily Mail don’t go that far.

I take an interest in a company called Associated British Foods(ABF). This company has interests in many fields in about 40 countries. They own 30+ companies involved with food production, food sales, and despite the name have diversified into fabric production and retailing.

One of their companies is Primark – much loved on MSE!! A company that has received much criticism for dealing with foreign companies paying their workers 7 pence an hour.

Last year ABF made £664 million profit. So perhaps we should have a thread entitled:

‘Shame of Primark making £664million profit on the backs of workers earning 7p an hour’

1carminestocky

Plushchris wrote: »

To be honest, even if they WERE to make £100 out of every customer per year that is still nothing compared to other companies profit margins, ever wondered how Tescos (other supermarkets are available ) operate? They dont sell you food at cost price, I would hazard a guess that if you regularly shop at one of the big supermarkets they make far more profit out of you than the Gas and Electric companies on stuff that is just as "essential" than gas or electric (I know I could live without lighting or heating but wouldnt last long with no food or bog roll!) but as someone said, we could all live in caves and kill our own food (probably nicer than supermarket rubbish too)

It always makes me laugh when people try and justify BGs methods by comparing them favourably to Tesco :eek: . That's a bit like saying Hitler wasn't so bad, you know, when you compare him to Himmler.

If the profits are so terrible for BG, I have a solution: get out of the industry altogether. I can't see any massive wave of sympathy enveloping the country if this was to happen....

PS Last time I looked, you couldn't get your gas and electric down the market. Like many arguments by the apologists on here your argument is a totally fatuous one.

smidgey

Apologists?

Nothing to apologise for as far as I am concerned. A BRITISH company making a profit during a recession and one that is still recruiting to add to it's already massive UK workforce. How is that so wrong?

Oh are we back to re-nationalising the utilities again? Write to your MP instead of bleating on about it on here.

Joyful

British Gas in the last year have made £1.20 per customer per month! Not such a lot is it.









I work at British Gas

garybuk

As above is correct, and they are NOTallowed under our competition laws to sell gas from their storage arm to the residential at anything other than market rates, in fact the companies aren't even allowed to communicate outside of regulated channels due to conflict in interest.

If you want British Gas to make £0 profit and just pay the ~53% tax it pays to the government (yes YOUR F-ing government) go moan to them, old Gordy is laughing his way to the bank. AND there would be very little investment in the national system and you'd have blackouts of Elec & Gas.

They are a private company and are entitled to make a profit.

P.s. all those lovely European companies you are with that hide massive profits in their European arms and get around tax and do everything in their power to restrict the free market of open energy in Europe are doing nothing but taking this country for a ride.

1carminestocky

Joyful wrote: »

British Gas in the last year have made £1.20 per customer per month! Not such a lot is it.









I work at British Gas

I rest my case. :rolleyes: