Ofgem has encouraged people to get the best price on their heating bills, in the week that British Gas unveils record profits.

Centrica-owned British Gas has reported a record rise in annual operating profit in 2009 for its residential arm to £595 million, a rise of 58% compared to 2008. 

Centrica Chairman Roger Carr celebrated the efforts of its staff for their hard work and resilience during such a busy cold period over the winter.

British Gas’ Commercial Manager defended the company’s profit margin and said it was not profiting from the recent cold weather. He told GMTV this morning that the gas which customers are using at the moment was bought over two years ago – as the company looks to ensure its future supply well in advance – at much higher prices than the current market.

Sam Laidlaw, Chief Executive, attributed the rise in profits to a strong customer account growth, together with a strong performance: “Our market leading price reductions in the first half of 2009 for residential energy customers, combined with continued strong growth from the services product range, helped us to increase our total product holdings by 550,000.

“Centrica’s underlying operating performance in 2009 demonstrated resilience in a year of sustained economic downturn and weak commodity prices.”

Centrica confirmed that British Gas would be creating 1,100 new jobs in 2010 in order to cope with the ever-increasing need for energy efficient products, which includes the roll out of smart-meter technology.
 
Mr Laidlaw continued: “Centrica is well-positioned to pursue growth opportunities and lead the drive to a low-carbon world, whilst maintaining the financial discipline to secure strong returns on our investments.”

This week, gas and electricity regulator Ofgem, has released a report urging customers to be more savvy with their utility bills. Thomas Lyon, Energy Expert as uSwitch.com, the price comparison website, commented on the report into energy companies’ margins: “The report is further proof that energy suppliers need to follow in the footsteps of British Gas and cut prices as a priority so that customers can enjoy some relief on their winter bills.

“Consumers can cut their energy bills significantly by moving to another supplier, but the biggest saving can be found by moving to an online energy plan.”