Gas giant announces pre-hike profit

By Paul McGurk

Centrica faces the wrath of consumers after it reported £1.3 billion in half-year profits - £270 million of which was for British Gas, which has just announced a massive hike in prices.

The utilities giant said its operating profits in the first six months of the year at British Gas were down 54% on the previous year's total, thanks to a 30 per cent increase in wholesale gas prices and a drop in consumption.

British Gas, the biggest energy supplier in the UK, will implement a rise in gas and electricity prices - 18 per cent and 16 per cent respectively - from August 18. Centrica also recorded a 19 per cent drop in adjusted operating profits on last year's total of £1.6 billion over the same period.

Nine million customers are expected to be affected when British Gas boosts its average dual fuel bill to £1,219 per year, up £190, with average monthly bills hitting £101.58.

High inflation and subdued wage growth are also hitting households at the same time.