Centrica Results Point to “War for Customers” in Business Energy Market

Share Article

Centrica, parent company of British Gas, has announced its interim half-yearly financial results for the first half of 2012, with an increase of 15 per cent in operating profit to £1,447 million.

But the positive performance is due to the consumer market. The business market is an entirely different story. Here British Gas saw a 3% fall in the number of businesses it supplies, down 25,000 to less than one million, and profits fell by 27% to £93 million.

Average business electricity prices from British Gas have fluctuated over the last six months, rising in April and falling in May and June. But while the annual business energy bill is less than it was in January, the average annual business electricity bill from British Gas in June was still almost £600 above the market average.

“It’s a war for customers and pricing is the few weapons in the armory of energy providers. These results show the challenging conditions for British Gas resulting from the volatility of the energy market. It’s a clear call to action for businesses to regularly check their energy pricing to ensure that they get the best deal,” said James Constant, managing director, Business Juice.

“Despite average bills from British Gas being lower than they were in January, its charges are still over the market average. Businesses must regularly compare prices – right down to the decimal point – if they want to ensure they are not only getting the best deal, but making some significant financial savings at the same time,” added Constant.

Even very small changes in standing charges and unit rates can have a large impact on the overall bill. For example, paying an extra 2.3p per kWH and an extra 3.6p a day for a standing charge can mount up to an additional £590 a year.

About Business Juice

Business Juice is a business energy broker - with a twist.

Its mission is to reinvigorate the energy market for businesses with a fresh new approach and by making sorting out a better business energy contract painless.

Business Juice helps businesses of all sizes and from any industry to get a better deal, offering a free, independent and expert comparison of business energy prices online, by email and on the phone.

Business Juice has launched Energy Forecaster, an online community designed to engage and educate UK businesses about the importance of energy in a new and innovative way. The site is full of content designed to help businesses get to grips with and discuss energy issues.

Business Juice is part of Forward, a media technology company.

Share article on social media or email:

View article via:

Pdf Print

Contact Author

Business Juice
Business Juice
0207 802 2943
Email >