British Gas Profit Drop

British Gas Profit Drop.

Energy Minister Ed Davey has suggested that British Gas may have to be divided up after adjusted figures show a dip in the energy suppliers profits.

The profit for 2013 dropped to £571m, down 6% from the year before. This drop is being linked to warmer weather seen in 2013.  Consumer prices and profits have been questioned by Ed Davey but pressure as ever always mounts when price rises for energy are discussed.

British Gas customer numbers also declined falling 2%.

Rising energy prices have been part of a debate for some time. The average fuel bill for energy customers is around £1,400.

MPs have been called upon to investigate the price rises for people’s energy bills despite them already being high.  Ed Davey has called for an investigation into the profit margins of all major energy suppliers. A review has already been undertaken by the Office of Fair Trading and only time will tell what will come from the investigation.

Comment

For two long, regulation of many sectors be it energy or banking has been too weak.

Rising energy costs not being passed onto consumers due to media pressure, politicians and public opinion, or indeed done so by stealth or indeed banks offering free banking but then cross selling and mis-selling products to make money is clearly not part of a stable growing economy.

Regulators and MP's must work together to create a clear, fair and transparent environment for us all.