PRESS ASSOCIATION -- Utility giant Centrica is facing more public outrage after reporting £1.3bn in half-year profits - including £270m for its residential arm British Gas - just weeks after announcing a price hike.
But Centrica said adjusted operating profits in the six months to June 30 at British Gas fell by 54% compared to the same period last year as it battled with a 30% increase in wholesale gas prices and lower consumption.
British Gas, the UK's biggest energy supplier, plans to lift gas and electricity prices by an average of 18% and 16% respectively from August 18.
Centrica, which also operates an upstream gas exploration business and a US residential arm, posted a 19% decline in adjusted operating profits from £1.6 billion in the same period last year.
Some nine million customers will be hit when British Gas raises the average dual fuel bill by £190 a year to £1,219, pushing the average monthly bill to £101.58p. The hike comes at a time when household incomes are becoming increasingly squeezed by high inflation and muted wage growth.
But Centrica said British Gas saw an 18% year-on-year decline in gas usage in the period, as well as a 3% drop in electricity consumption.
The FTSE 100-listed company said British Gas profits were made in the first quarter of the year - with energy being sold at a loss since April.
Centrica said without the pending price rise in August, it will make a loss in the second half of the year. But British Gas did record an increase in customers in the period - up 159,000 to 16.1 million accounts.
The upstream gas operations, which include assets in the North Sea and Trinidad and Tobago, saw profits increase 14% to £414 million. Centrica said it was investing £1.3 billion this year alone in securing new sources in energy.
However, the company said it was "now clear" the UK's programme for new nuclear generating capacity will be delivered later than originally hoped. Centrica now expects clarity on the revised timetable towards the end of the year.