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According to recent reports, it is anticipated that the parent company of British Gas, Centrica, is to announce a drop in profits fairly soon. Insiders are expecting that this announcement will come on the same day that energy industry regulator Ofgem will publish data stating that earnings have increased.
British Gas, which is the largest energy supplier in the UK will announce a decrease in profits of around 25% from its retail division for the first six months of this year. Insiders say that the provider is likely to blame mild winter weather alongside an increased rate of competitiveness in the energy market for the fall in earnings.
In direct contrast, Ofgem is predicted to reveal data which will imply that the big six energy providers-including British Gas- will make around £100 per household for the next six months. Previously, parent company Centrica said that it gets half of that amount per household in the last year, estimating that this number would fall in 2014. It is believed that the obvious difference between figures will only provoke more distrust from customers towards the energy industry.
The news of a clash comes as the Competition and Markets Authority has began its 18 month long investigation into the gas and electricity market. Recently, the CMA published an initial report on which areas of the energy industry it classed as a concern. This included the market dominance of the big six, pricing that is uncompetitive and a lack of competition within the market.