British Gas - what monsters!

Nada666

Cue the usual complaints - from £2.50 profit a month to a fiver a month. Pensioners are dying in their throws and children being fed from foodbanks because of this monstrous escalation of bills from £112 to £115 a month.

Just think what the poor could buy if Centrica didn't make a profit and the bill was only £110 instead!

System

Nada666 wrote: »

Just think what the poor could buy if Centrica didn't make a profit and the bill was only £110 instead!

I've thought and my answer is an extra couple of bottles of Stella or a packet of cheap fags

Am I right?

ariba10

As Maggie said. "Privatising these utilities will benefit us all"'

Smiley_Dan

They are making more money because we require more energy.

Simple solution: require less.

1/3 of our energy requirement comes from domestic heating. But Gideon Osborne has cancelled the zero carbon housing programme, locking in more energy use and energy poverty for generations to come.

[Deleted User]

British Gas are making more money because of the giveaway price G4S gave for the contract to read all their meters for the next 7 years just to wipe out Siemens as their biggest meter reading competitors ( which they did ) . They paid £170 mill a year for the whole country, down from £340 mill a year. Meanwhile G4S halved my salary. A few years back BG s annual profit per customer was around £12, now its £112. They are making so much more because their biggest operating cost has lowered so much even though energy prices have dropped. G4S grab many contracts and lose money on them, they did the same with Scot Power. They should stick to what they know, that is locking people up and guarding places.

Bluebirdman_of_Alcathays

sacsquacco wrote: »

British Gas are making more money because of the giveaway price G4S gave for the contract to read all their meters for the next 7 years just to wipe out Siemens as their biggest meter reading competitors ( which they did ) . They paid £170 mill a year for the whole country, down from £340 mill a year. Meanwhile G4S halved my salary. A few years back BG s annual profit per customer was around £12, now its £112. They are making so much more because their biggest operating cost has lowered so much even though energy prices have dropped. G4S grab many contracts and lose money on them, they did the same with Scot Power. They should stick to what they know, that is locking people up and guarding places.

You normally talk some sense on here, but you must be deluded if you think paying the meter readers is Centrica's largest operating cost! This is a conglomerate with a £22bn turnover, and a similar cost base.

Even if your figures were correct (they're not), the G4S contract would be approximately 0.7% of turnover. In reality, the G4S contract is not £170m per year, it's £170m for the duration of the contract - ie. £170m over 7 years.

http://utilityweek.co.uk/news/g4s-awarded-163150-million-meter-reading-contract-by-british-gas/758302

I know we all like to think we're the centre of this industry, but BG aren't suddenly in the black because of your salary cost being halved - the reality is a lot less conspiratorial - it's been colder than expected combined with a plummeting cost in wholesale energy.

[Deleted User]

Bluebirdman_of_Alcathays wrote: »

You normally talk some sense on here, but you must be deluded if you think paying the meter readers is Centrica's largest operating cost! This is a conglomerate with a £22bn turnover, and a similar cost base.

Even if your figures were correct (they're not), the G4S contract would be approximately 0.7% of turnover. In reality, the G4S contract is not £170m per year, it's £170m for the duration of the contract - ie. £170m over 7 years.

http://utilityweek.co.uk/news/g4s-awarded-163150-million-meter-reading-contract-by-british-gas/758302

I know we all like to think we're the centre of this industry, but BG aren't suddenly in the black because of your salary cost being halved - the reality is a lot less conspiratorial - it's been colder than expected combined with a plummeting cost in wholesale energy.

My figures are 100% correct.this was from the Northern senior manager at a Union meeting last month.We are not talking about Centrica s huge operations.They are split from from that side of the business and are a separate issue.This is solely for the British Gas arm..Supply of gas and electricity only. G4S bid for the remaining years of their metering contract and their only competitor was Siemens who s employees were Tupe contracted over to us at G4S.
Actually collecting the physical reads I m told is any suppliers largest expense. BG are now making excellent profits due to advanced smart metering in place and are now paying peanuts to collect all their readings, which include business, warrants, pre warrants, must inspects and cyclic and many other read types.The year before G4S won the contract BG paid £340 mill per annum. Now its £170 mill. As I said , a few years back they were reporting such low figures as £12 per cust per year overall profit when prices were much higher.We can all see the kwhr gas price dropping yet they come in with record profits, so they are just working at cheaper overall overheads
that article you link mentioned our head of contracts Kim Challis who left the company/resigned due to all the disasterous contracts she negotiated in her term.It was nt just the BG contract she messed up but many others..eg she allowed an EDF contract to FINE us £300 quid if we did nt make an appointment on time.G4S are virtually paying EDF to read their meters due to people like Kim Challis who had no knowledge at all about data collecting for the suppliers in general. This inside info is well known throughout G4S utilities ltd

martinsurrey

sacsquacco wrote: »

My figures are 100% correct.this was from the Northern senior manager at a Union meeting last month.We are not talking about Centrica s huge operations.They are split from from that side of the business and are a separate issue.This is solely for the British Gas arm..Supply of gas and electricity only. G4S bid for the remaining years of their metering contract and their only competitor was Siemens who s employees were Tupe contracted over to us at G4S.
Actually collecting the physical reads I m told is any suppliers largest expense. BG are now making excellent profits due to advanced smart metering in place and are now paying peanuts to collect all their readings, which include business, warrants, pre warrants, must inspects and cyclic and many other read types.The year before G4S won the contract BG paid £340 mill per annum. Now its £170 mill. As I said , a few years back they were reporting such low figures as £12 per cust per year overall profit when prices were much higher.We can all see the kwhr gas price dropping yet they come in with record profits, so they are just working at cheaper overall overheads
that article you link mentioned our head of contracts Kim Challis who left the company/resigned due to all the disasterous contracts she negotiated in her term.It was nt just the BG contract she messed up but many others..eg she allowed an EDF contract to FINE us £300 quid if we did nt make an appointment on time.G4S are virtually paying EDF to read their meters due to people like Kim Challis who had no knowledge at all about data collecting for the suppliers in general. This inside info is well known throughout G4S utilities ltd

your numbers are a load of twaddle

https://www.centrica.com/sites/default/files/2014_ara.pdf

page 25-26

British Gas (not Centrica) had operating profit of £823m in 2014.

The meter reading contract is for at least £150m OVER 7 years, so under £22m a year. Which is less than 3% of operating profit.

The meter reading cost is a drop in the ocean to BG.

C_Mababejive

I personally celebrate the success of a great British and international company that Centrica is. It invests in Britain, pays tax in Britain and employs thousands of people both in the UK and other countries. It plays a big part in gas production and supply as well as power generation in this country.

People are perfectly free to choose who they buy their energy from in thus country.

The best deal for you is an individual one and it may well be that for many British Gas is the best choice.

So Centrica/ BG are not the only supplier in this country. There is therefore no need for hand wringing. All that is needed is for people to do some simple maths. Thhey have plenty of time to sit on their backsides absorbing hard working peoples' taxes and dropping brats whilst they flick their iphones .

Klendathu

sacsquacco wrote: »

My figures are 100% correct.this was from the Northern senior manager at a Union meeting last month.

I have had a very poor experience with communications and facts being relayed by unions on issues on which unions have a vested interest. I have observed some unions, and I'm not commenting on yours in particular, demonstrate a wilful disregard for the facts to make a point.

I can't post links (I'm a new member) but all of the press coverage for this contract supports the £150+ million being over the course of the entire contract, not per year. This includes British Gas's own statement. Unless BG are deliberately disseminating false financial information I think your source was confused.

macman

As usual, total inability of the press to distinguish between profit made by Centrica and profit made by BG.