Centrica's British Gas Residential is expected to post a 26% hike in profits to £352 million in the first half of 2012 as the UK's biggest energy supplier benefited from the cool start to summer and higher prices.
British Gas, which has 16 million customer accounts, dropped its standard electricity prices by 5% in January but they are still higher than a year ago after a 16% rise in August, when gas bills also went up by 18%. The rise in profits means that British Gas Residential made nearly £2 million of profit a day, or some £3.70 per household per month.
Its haul is likely to rekindle anger over energy companies as consumers struggle to cope after the average dual fuel bill rose to £1,310 a year - more than £200 higher than two years ago. One in five households is now in fuel poverty, defined as when 10% of disposable income goes to pay for electricity and heating.
Energy companies have been accused of quickly passing on rising wholesale costs to consumers but being slow to drop prices when they fall.
But British Gas's figures will benefit from weak comparatives with the previous year when unseasonably warm weather hit demand and it delayed passing on rising wholesale costs to customers, pushing the division to make a loss in its second quarter.
When Centrica last updated the market in May it warned its energy costs were continuing to rise, with wholesale gas prices 15% higher for the next winter and other costs set to add £50 to the cost of supplying the average household this year. Although wholesale prices are understood to have reduced slightly in recent months, they are unlikely to be passed on to consumers this year.
The strong performance at British Gas Residential is set to help drive a 13% uplift in underlying earnings at Centrica to £763 million. Its upstream division is expected to see a 25% rise in earnings to £662 million, helped by £1.2 billion of acquisitions, which increased its reserves by 38%.
Centrica claims to have invested £1.80 for every £1 it has earned over the past five years, while higher upstream profits mean its tax bill could top £1 billion for the whole financial year.
Richard Hall, head of energy regulation at Consumer Focus, said: "Wholesale prices rose a little earlier in the year but are now falling and they are still a long way from their peak in 2008. We have long questioned whether drops in wholesale costs find their way through to household bills. Only weeks ago, British Gas was hinting at further bill increases. With forecasts of rising profits for its domestic supply business, British Gas should at the very least put its customers' minds at rest by stopping this sort of rhetoric."
Copyright (c) Press Association Ltd. 2012, All Rights Reserved.
TBC Wholesale Adds 13 Sizes & New Treadwear Warranty - YAHOO!
TBC expands its Doral SDL-A and Sumic GTA Tire Lines with 13 sizes and a new treadwear warranty to meet the demands of consumers.
Palm Beach Gardens, Fla. (PRWEB) July 25, 2012 TBC Wholesale Group is expanding its fall line-up with the rollout of an additional 13 new sizes to the Doral SDL-A and Sumic GTA All Season Performance lines. Additionally, there is a new 45,000 mile limited treadwear warranty on these high quality, performance engineered tires. The new sizes will be available this fall with initial availability in October 2012.
“Dealers and consumers have come to know and trust the high value proposition of this great line, which is designed and engineered in Japan and manufactured by Sumitomo Rubber Industries,” said Jon Vance, Director of Consumer Product Marketing for TBC Wholesale. “As the exclusive marketer and distributor of this line in North America, we are excited to offer this expanded portfolio to our consumers.”
The new sizes cover a variety of popular late-model performance sedan & crossover fitments and brings the line to 41 total sizes in S,T,H & V speed ratings, giving the Doral SDL-A and Sumic GTA superior size coverage in the fast growing all-season, value performance segment.
“These size and warranty enhancements are in recognition of the outstanding performance and value that the Doral SDL-A and Sumic GTA lines offer both tire dealers and consumers,” said Vance. “These great lines combine Sumitomo Rubber technology, quality and long lasting performance with a value price that dealers can market with confidence and drivers can ride on with the peace of mind that comes with making a smart decision. And it’s all backed with the service and commitment of TBC Wholesale.”
For more information contact TBC Wholesale Group at 800-238-6469.
ABOUT TBC WHOLESALE GROUP
The TBC Corporation’s (“TBC”) Wholesale Group, is one of the world’s largest marketers of private brand tires. Its representing thirteen powerful tire brands are well known and respected throughout the industry. TBC Corporation (TBC) is one of the nation's largest marketers of automotive replacement tires through a multi-channel strategy. TBC is headquartered in Palm Beach Gardens, Florida.
The TBC Wholesale Group consists of TBC Brands, Treadways, Carroll Tire Company, TBC International, TBC Latin America, and TBC de Mexico. Each entity is a wholesale supplier to independent regional tire retailers and distributors throughout the U.S., Canada, Mexico, Central and South America, Europe and the Middle East. Additionally, TBC’s Retail Group operates more than 2700 franchised and company operated tire and automotive service centers under the brands Tire Kingdom®, Merchant’s Tire & Auto Centers®, NTB®-National Tire & Battery®, Big O Tires®, and Midas®.
Patrice Kelty
Tire Kingdom, Inc.
(561) 383-3000 x2527
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