Centrica, the owner of British Gas, positioned itself to take the lead in an anticipated wave of gas and electricity rate rises from energy suppliers after warn-ing yesterday of "challenging conditions" in the wholesale gas markets.
As the UK's leading energy supplier – Centrica has 10 million gas customers and 6 million electricity users – the company is typically the first to increase its rates, providing cover for its smaller rivals which then usually follow suit. Karen Darby, of the price comparison service SimplySwitch, said: "Historically, when one of the big suppliers increases prices, the others are quick to follow." She said that a 15 per cent increase would mean an extra £131 to annual energy bills.
Last winter, wholesale gas was trading at about an average of 37p per therm. That compares with 53p per therm now. The rising price is due to myriad factors, including the highly illiquid European market for natural gas, which has kept prices artificially high. The high oil price, against which many gas prices are indexed, and a cold weather snap are further factors.
Centrica said it had managed to end the year with about 16 million customers despite losing more than 250,000 early in the year after it raised its prices. Analysts expect the company to report a profit of between £1.8bn and £1.9bn when it reveals its annual results in February.
source
(Tom Van thienen)
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