Rising wholesale prices and poor weather hit Centrica profits

The FTSE 100-listed owner of British Gas saw its profits at its consumer business fall 20 percent to £430m, according to its figures.

Group revenues rose to £15.3bn, from £14.3bn in the same period the year before. Earnings before interest, tax, depreciation and amortisation (EBITDA) were £1.32bn, up from £1.29bn.

The company has been encouraging customers to switch to cheaper tariffs, rather than its main standard variable tariff, ahead of a temporary price cap which will come into force at the end of 2018.

Energy regulator Ofgem is expected to outline how the cap will function in a publication in August, but it will vary around the country depending on regional market forces and will be reviewed every six months.

Centrica chief executive Iain Conn said: “We continue to make progress on implementing our strategy. We have developed new propositions and delivery capabilities in both customer divisions and our cost efficiency programme is on track.

“Although we are awaiting the final outcome of regulation to impose a temporary cap on all default tariffs for residential customers in the UK, we have plans in place to manage this. Our focus remains on performance delivery and financial discipline.”