It doesn't look like British Gas are going to lower energy prices...
CEO Sam Laidlaw has been laying into Ofgem, saying that their estimate for the amount of profit BG stand to make from the average household this coming year (£106) is wrong.
He said it’s actually closer to £40 – 20% down on last year - and got very shirty indeed. It also didn’t appear to be making any moves to cut energy tariffs. WHAT A SURPRISE.
Laidlaw stroked his Arctic fox trimmed lapels, turned over in his bath of Cristal and said:
The Ofgem analysis is a theoretical analysis. What we are actually publishing today is the actual facts. We have been in discussions with Ofgem for a number of years about this methodology, which has its deficiencies and they recognise that it needs to be changed.’
But quibbling over Ofgem’s calculations doesn’t alter the fact that the warm weather was to blame for their slide in profits, and that they still have a responsibility to lower their prices so that customers don’t end up overpaying and in penury as a result.
Ricardo Lloyd from Which! issued his usual robotic statement, but it doesn’t look like anyone at BG will be listening. He said:
‘British Gas profits are down because of a warm winter, not lower prices.Energy companies must do everything they can to pass on any savings to their customers including falling wholesale and network costs.’
Shadow energy minister Jonathan Reynolds said that the energy market wasn’t working and added:
‘Britain's hard-pressed bill-payers have seen their energy bills rocket, despite falling wholesale costs, while David Cameron sits on his hands and repeatedly fails to stand up to the big energy companies.’
The results of this CMA profits investigation can’t come soon enough, eh?