Centrica to announce results amid pressure over high margins

Centrica to announce results amid pressure over high marginsCentrica, a leading gas provider in the UK, is set to announce its annual results at a time when the energy firms in the UK are facing pressure over high margins.

Experts have said that the group might record an increase of 5.5 per cent to £18.8 billion during the previous year. They expect the underlying pre-tax profits to rise 9 per cent to the level of £1.8 billion. The firm is facing criticism for earning large margins from customers while households face pressure on bills.

Energy secretary has asked the regulators to investigate profit margins in its investigations in the industry. He said that the analysis of profit margins of energy companies have showed that the average profit margin for gasis around three times that of electricity. Davey said that British Gas had the highest profit margins in the industry and has a market share of 41 per cent. Scottish and Southern Energy (SSE) and the owner of Scottish Gas, Centrica saw a fall in their share prices after Davey indicated that such firms might be broken up.

The big Six energy suppliers have agreed to refund direct debit customers in an attempt to calm down the situation.