Oh dear

[sir.prize]

what a shame

British Gas Half-Year Profits Slip To £270m

[Ankou]

crikey, do we need to organise a charity concert and candlelit parade?

[cazzz1975]

They are planning price rises because apparently they will make a loss if they don't

[rov1100]

If this is what Sid intended we should revert it back to state ownership.

[Dodger666]

Their profits will slip further as I have just switched from them. No doubt quite a few more will move too.

[emmie]

The money they were fined will i am sure be passed right back to the poor old customer in whatever way.

[tara20]

If I had the time, I'd sympathise.
But I don't.

[Maydup]

Thankfully I didn't contribute a penny, no gas here.

[DTCwordfan]

Yoou are looking at the wrong measure....look at return on investment, return on capital employed and I bet its about 1% - pretty awful and the future doesnt look good.

Look the price of sausages in the butchers is £1 a pound, cost 50p. The butcher has 1000 pounds in stock, enough for 10 days.

The meat suddenly rises to £1.50 a pound because of foot and mouth. If the butcher doesnt lift if his prices, what is going to happen - he doesnt generate enough cash to cover his meat purchases for the future.....result - insolvency.

The gas wholesale market is not set here in the UK - its a global market as gas can be shipped as LNG and also though pipelines - and also traded.

BG and the other competitors have to increase prices to maintain a semblance of profitability and an appropriate return to shareholders - not 30% - that would be excessive and arguments against price rises fully justified. More like 5 to 10% on capital employed...and that is no more than an average company on the stock market.