Centrica uses profits to curb 
price rises

The energy giant cashed in after raising its prices by six per cent in December, just before the start of the harsh weather, a period that saw customers increase gas consumption by nearly a fifth compared with last year.

But it said that because of the “economic pressures” facing many households it would not pocket the extra earnings, and instead would use them to prevent any further tariff hikes “for as long as possible”.

However the pledge comes as cold comfort to many of its eight million customers, who are likely to be shocked by their next bills after cranking up their heating to keep out the bitter cold.

Richard Lloyd, executive director of consumer group Which?, said the announcement highlighted the lack of transparency in the energy market and that “radical action” was needed to provide simpler and fairer bills, more competition and easier switching between providers.

He said: “With inflation-busting price hikes and eye-watering profits, it’s no wonder less than a quarter of people trust the industry and rising energy prices consistently remain one of consumers’ top financial worries.

“With a big leap in gas use over the winter, huge numbers of people will be shocked by their next bill.”

Centrica has faced sustained hostility as it awarded soaring multi-million pound pay packets to executives while households have struggled to pay rising energy bills. Its pledge to curb future price rises is an attempt to acknowledge publicly its customers’ difficulties in the face of both the unforgiving economic climate and the weather.

The announcement came yesterday on the day of the company’s annual general meeting in London.