Centrica earns £1bn after British Gas price hike

British Gas' parent company Centrica has announced a 19 per cent drop in half year profits, just days after British Gas revealed plans for its 35 per cent hike in fuel prices.

British Gas' parent company Centrica has announced a 19 per cent drop in half year profits, just days after British Gas revealed plans for its 35 per cent hike in fuel prices.

The drop of 19 per cent, however, brings the total group's operating profit for the six months to June 30 to a staggering £992 million; a far cry from a company that is struggling to make ends meet.

British Gas itself has a large part to play in Centrica's fall in profits, as it suffered a 69 per cent drop in profits due to the soaring wholesale price of fuel. British Gas revealed profits of just £166 million.

There is some controversy however, as despite the fall in energy profits recorded by British Gas, the company also recorded massive gains in its production business, which enjoyed a five-fold increase in profit, to £638 million.

Speaking about the biggest energy price rise in history, Centrica chief executive Sam Laidlaw said: "The UK is no longer self-contained from an energy perspective.

"The wholesale price [of gas] has gone up by 90 per cent. If we are going to remain a viable business then this price rise is necessary."