- British Gas owner Centrica expects its retail business to generate significantly higher first-half adjusted operating profit than in previous years.
- Ofgem’s price cap provides an allowance to account for debt on energy bills that energy suppliers cannot recover and would ultimately be written off.
British Gas owner Centrica expects its retail business to generate significantly higher first-half adjusted operating profit than in previous years, it said on Tuesday, citing reduced debt-related costs. UK energy regulator Ofgem’s price cap provides an allowance to account for debt on energy bills that energy suppliers cannot recover and would ultimately be written off.
While millions of British households were struggling to pay energy bills after Russia’s invasion of Ukraine sparked a surge in wholesale gas prices, the price spike and higher gas production helped to triple Centrica’s profit to a record 3.3 billion pounds ($4.14 billion) last year. Though wholesale energy prices have fallen this year, a company statement ahead of its annual general meeting on Tuesday said that its performance over the first five months of the year has been strong overall.
“Uncertainties remain over the balance of the year, including the impacts of weather, commodity prices, the economic environment, any changes to regulation or government policy, asset performance and the competitive backdrop for our energy supply businesses,” its statement said.
At an annual general meeting on Tuesday, Centrica shareholders passed all resolutions, including a bonus package worth more than 3.7 million pounds for Chief Executive Chris O’Shea’s, meaning his total pay package in 2022 was worth 4.5 million pounds. Some 93% of the company’s shareholders voted to approve the directors’ remuneration packages.
SOURCE: Reuters