Centrica hints further price increase

British Gas profits increased by 3per cent in the six months to June however, the company hints further price increases as costs escalate.

09:27 01 August 2013

Centrica has fuelled fears over further price increases this week because of escalating costs.

The company revealed in May that customers’ use of gas has increased by 18per cent for the first four months of the year, and that it would use the extra cash it earned from the cold weather to hold prices as long as possible. 

The group said in a statement: “The fact that British Gas has absorbed increasing costs so far this year will be of cold comfort to consumers who may be fearing the worst - especially with rumours of price rises.”

Adding: "Profits are up from last year, so we would urge British Gas to help quell customer’s fears and go one step further from its May pledge and commit to a price freeze for the rest of the year.”

However, Nick Luff, Centrica finance director, did not rule out the possibility of increasing the prices and said that the extra profits they made for the first half of the year is only equal to about an extra 70p per customer.