British Gas announces record profit

British Gas, which has nearly 16 million customer accounts, posted a 24 per cent surge in operating profits to £742m in 2010.

The figures were revealed two months after the supplier pushed up bills by 7 per cent.

The record takings prompted calls for energy regulator Ofgem, which is leading an investigation into the balance sheets of the major suppliers including Centrica, to refer the sector to the Competition Commission.

Centrica, which also revealed record operating profits of £2.4bn, up 29 per cent, blamed the price increases on soaring wholesale prices and said it would create 2,600 jobs in 2011 and invest £15bn between now and 2020.

About eight million British Gas customers were hit with a price rise on December 10, lifting an average customer’s dual fuel bill from £1,157 to £1,239.

Ofgem found average industry margins on a standard dual fuel tariff rose to £90 in November, from £65 in September, prompting an investigation into the “big six” providers.

The regulator’s findings are expected to be published next month.

But Centrica claims British Gas prices were 0.5 per cent lower at the end of 2010 than at the start of the year after the supplier cut bills by 7 per cent in February.