British Gas owner sees profits rise

It said operating profits at the energy and services arm covering the UK and Ireland rose by 2​ per cent​ to £906​m last year from £891​m a year earlier, helping wider group operating profits at Centrica jump 4​ per cent​ to £1.5​bn.​

The company is expected to face fresh calls to address tariffs for businesses and domestic consumers.

The industry has faced mounting pressure to treat loyal customers fairly and has been criticised for being slow to pass on falls in wholesale gas prices, with consumer groups hitting out at the size and timing of cuts.

British Gas announced it was extending a price freeze on its standard energy tariff until August, "despite increases in external costs", but customers are expecting prices to soar later this year, following the Brexit-induced collapse of the pound and rising wholesale energy prices.

Centrica's British Gas residential energy supply arm, which only covers UK homes, reported an 11​ per cent​ drop in operating profit to £553​m and said the reduction was due in part to a customer exodus.

More than 409,000 UK home customers left the business in the year to December 31, marking a 3​ per cent​ fall to 14.25 million.

But the group said it stemmed the outflow in the second half of the year after launching new tariffs and improving customer service.

Group chief executive Iain Conn said: "2016 was a year of robust performance and progress in implementing our customer-focused strategy.

"We delivered our key objectives including improved customer service and more innovative offerings and solutions - while repositioning the portfolio, building capability and driving significant cost efficiencies."