British Gas has announced its profits are up 11% from last year to £606m. Its owner Centrica, which also owns Scottish Gas, has announced its annual operating profits are up 14%.
Centrica profits allow group to 'make contribution to society'
Sam Laidlaw, Centrica chief executive, pointed towards the group's tax contribution and investment in future energy sources:
We have taken the lead during 2012 in helping more households save energy and supporting the people who need the most help.
It’s important that Centrica makes a fair and reasonable return so that we can continue to make our contribution to society and to invest.
Last year we incurred a tax charge of over £1 billion and invested over £2 billion to secure new sources of energy for the UK, well in excess of our profits.
Centrica has GDP contribution 'as big as Manchester'
On Sunday Centrica sought to deflect flak over another jump in annual profits by flagging up its importance to the UK economy.
Chief executive Sam Laidlaw said its contribution to GDP was equivalent to a city the size of Manchester, and its tax bill amounted to £158 for every UK household.
Centrica published the findings of its specially commissioned report ahead of an expected double-digit rise in profits after increasing bills by 6% for around 8.5 million households at the end of last year.
Mr Laidlaw said: "At a time of uncertain economic prospects, our activities across the UK are even more important to secure employment, put the supply chain to work and contribute our fair share of tax."
Analysts are forecasting that Centrica will announce a 15 per cent rise in operating profits, amounting to £2.77 billion.
Centrica are to announce profit results today Credit: Owen Humphreys/PA Wire
Profit results, which will be announced by the company today, come after Ofgem boss Alistair Buchanan warned of price rises, due to the energy supply crunch from ageing power plants.
British Gas profits 'expected to rise' for second year running
British Gas parent Centrica will stoke public anger over energy firm profits tomorrow when it reveals another jump in annual profits just months after hiking customer bills.
The City is predicting the group's British Gas residential arm will deliver profits of £598 million, up from £544 million in 2011 after last year's colder-than-normal weather provided a boost.
Centrica, who own British Gas, are expecting to announce a multimillion pound profit boost on Wednesday. Credit: Lewis Whyld/PA Wire/Press Association Images
Its results come amid mounting questions over the fairness of energy prices after British Gas increased tariffs by 6% for around 8.5 million households at the end of last year.
Centrica has already sought to head off consumer backlash by flagging up its importance to the UK economy after publishing a report at the weekend claiming it contributes more than £14 billion through taxes, job creation and contracts with small suppliers.
