BG first-half profits rise 23%

bankhater_1965

antrobus wrote: »

But there isn't any room for a 'big reduction' due to 'massive profits'. British Gas is making a profit of about £40 per household it supplies, and a £40 reduction on a typical energy bill of £1260 is only about 3%.

so the british gas chairman gets a £700,000 bonus for creating a 3% profit then ? and you say there isnt any room , i dont follow sorry

antrobus

bankhater_1965 wrote: »

so the british gas chairman gets a £700,000 bonus for creating a 3% profit then ? and you say there isnt any room , i dont follow sorry

It's called arithmetic.

British Gas supplies over 12 million UK households. British Gas not paying their chairman a £700,000 bonus and using that money to reduce customer bills would result in each household receiving slightly less than 6p.

ollski

I would imagine bg have managed to increase profits by massive staff reductions, cutting pension benefits and generally slimlining the business. Bg needs profits to keep happy shareholders to finance the business, if it was running along at breakeven with all the other providers do you honestly think prices would reduce?. Yes the board are paid vastly over the top salaries and bonuses but this is inline with with all corporations, it is the system we created.

bankhater_1965

ollski wrote: »

I would imagine bg have managed to increase profits by massive staff reductions, cutting pension benefits and generally slimlining the business. Bg needs profits to keep happy shareholders to finance the business, if it was running along at breakeven with all the other providers do you honestly think prices would reduce?. Yes the board are paid vastly over the top salaries and bonuses but this is inline with with all corporations, it is the system we created.

personaly i think its more of the british public being taken for a ride ! £700,000 bonus whilst most people struggle to pay there gas bills is no diff to a dictator running a country ! and we deal with them in hard way

antrobus

ollski wrote: »

I would imagine bg have managed to increase profits by massive staff reductions, cutting pension benefits and generally slimlining the business. ....

And you'd be wrong. The profits of British Gas Residential have fluctuated over the past decade between about £100m a year and £800 a year. Whether profits go up or down (and they were down last year) depends almost entirely on the vagaries of the wholesale market and the weather.

bankhater_1965

antrobus wrote: »

And you'd be wrong. The profits of British Gas Residential have fluctuated over the past decade between about £100m a year and £800 a year. Whether profits go up or down (and they were down last year) depends almost entirely on the vagaries of the wholesale market and the weather.

like i have said before , i would be very happy to see such a company (british gas) fold by whatever meens

Terrylw1

antrobus wrote: »

And you'd be wrong. The profits of British Gas Residential have fluctuated over the past decade between about £100m a year and £800 a year. Whether profits go up or down (and they were down last year) depends almost entirely on the vagaries of the wholesale market and the weather.

The settlement process has been known as a major issue in the elec market ever since deregulation.

So, given the hundreds of millions wasted in a supplier in this area alone, an improvement to this could reflect in profits.

MillicentBystander

antrobus wrote: »

And you'd be wrong. The profits of British Gas Residential have fluctuated over the past decade between about £100m a year and £800 a year. Whether profits go up or down (and they were down last year) depends almost entirely on the vagaries of the wholesale market and the weather.

Swings and roundabouts. BG's parent company are also fuel wholesalers so when BG makes less profit due to high wholesale prices the excavation/wholesale arm make higher profits and vice versa. In effect, Centrica really can't lose.