Centrica boss hits out at Ofgem amid price row

The boss of British Gas parent Centrica has told ITV News the company will make far less profit from energy bills than watchdog Ofgem has suggested.

Chief executive Sam Laidlaw told ITV News the energy firm would make £40 profit per customer per year - some way from the £106 Ofgem says energy companies are set to make.

The company has come under pressure to cut bills after watchdog Ofgem pointed to falling wholesale gas and electricity prices.

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British Gas owner defends charging higher tariffs

British Gas owner Centrica has come under pressure to cut bills after watchdog Ofgem pointed to falling wholesale gas and electricity prices.

British Gas say average bills are set to be £90 lower this year. Credit: Rui Vieira/PA Wire

Customers are paying higher tariffs this year after they were hiked 9.2% last autumn, though the rise was scaled back following the Government's shake-up of so-called green levies on bills.

But Centrica said the average bill was expected to be £90, or 7%, lower this year reflecting warmer weather and energy efficiency measures.

The company reiterated that tariffs were not expected to change during 2014 "recognising competitive conditions in the UK energy supply market".

Centrica has defended its stance by pointing to the way it buys much of its energy in advance and that the benefit of lower wholesale prices for next year is offset by higher costs elsewhere.

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