Outrageus Gas Profits

  Kevscar1 18:07 25 Feb 2010
Locked

If Sky News,s figures are right Britsh Gas make £60 proift per household per Annum. Thats £1.15.3p per week. How dare they.

  GANDALF <|:-)> 19:01 25 Feb 2010

..and that equates to about 9% profit per house per year. Call me stupid but I would imagine most of the goods you buy have a profit margin of more than 9%. This figure seems quite low, economically speaking...take off 3% for inflation and 4% for tax and you are not left with much profit.

G

  Colin 20:02 25 Feb 2010

It's another case of people trying to get their heads around sums of money for which they have no perspective. They are just headline figures deliberately used to provoke a reaction. Consider Gandalf's comments - they make sense.
There appears to be a feeling nowadays that if a company makes a profit they have somehow done something immoral. Of course, the unknowledgeable bod in the street knows all about a company’s finances and decides what a good profit should be – until they’re in a position to do the same, and then it’s different!

  interzone55 20:28 25 Feb 2010

According to Centrica it's £3 per customer per month, or £36 per annum.

As Gandalf points out, 9% profit margin is not huge, and you must consider the massive expense involved developing new supplies. The expected capital outlay for the next 3 years is around £4bn, that kind money doesn't appear out of fresh air you know...

  GaT7 20:47 25 Feb 2010

I think Kevscar's complaint might have something to do with BG making huge profits but not passing on some of their savings to the customer by way of reduced prices. G

  GANDALF <|:-)> 21:06 25 Feb 2010

They are not making huge profits if you read my post carefully. You are not reviewing total net profit and total number of customers + operating costs + future investment. The margins that they are working to would be ones that I would feel very uncomfortable with if it were my company.

G

  Kevscar1 22:31 25 Feb 2010

Crossbow7
I am not complaining. Thought the last three words made that clear. In my view thats a very small profit

  Forum Editor 23:51 25 Feb 2010

How dare they what - make a profit?

The UK gas network will require approximately £200 billion of investment over the next decade, and that money isn't going to come drifting down from the sky.

It suits the media to make a big thing out of a reasonable operating profit because energy prices are always good for a bit of copy. The fact is, a pound or so a week in operating profit from each of your customers is not exactly the stuff of which dreams are made.

You've succumbed to the odd disease of thinking that it's wrong to make a profit if you sell an essential commodity.

I think I must have been the only one that picked up on the sarcasm in your original post!

  wiz-king 05:40 26 Feb 2010

I'll tell Sid.

  Kevscar1 10:45 26 Feb 2010

And the prize goes to.
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