British Gas pledges to use cold weather profit to keep prices steady

In its Interim Management Statement out today, Centrica, the parent of Britain's largest energy company, British Gas, has said that it will use any benefit from the recent unseasonal cold snap to maintain its price competitiveness.

The news will come as a relief to cash-strapped consumers and gives them a welcome break from spiraling essential bills, says uSwitch.com.
 
British Gas last hiked its gas and electricity prices in November (2012) by 6% or £80, taking its average household bill to £1,340 a year. However, it subsequently reported an 11% year-on-year increase in profits for its residential supply arm, resulting in it facing calls to cut prices again to alleviate the pressure on customers. Any further increase would be its 4th since December 2010.

Ann Robinson, Director of Consumer Policy at uSwitch.com, says: "This is welcome news when the majority of consumers are struggling to pay their household energy bills. British Gas has recognised the pressure facing customers and is using the financial gain from the extended cold weather to maintain its competitiveness, In plain English, this means that British Gas customers should expect no further increase in prices at least for the foreseeable future.
 
"However, customers should still not be complacent. There is currently over £320 difference between the cheapest and most expensive energy tariffs on the market and with significant differences creeping in on standing charges it's even more important that consumers shop around the whole market as even greater savings can be made."