Centrica reveals British Gas profits down for 2014's first half

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British Gas' profits have fallen during the first half of this year its owner Centrica has announced.

The big six energy supplier's operating profit from its residential supply arm fell to £265 million for the first half of this year. It attributed the fall to the considerable spells of warm weather the UK has experienced so far in 2014, rather than a fall in residential gas and electricity prices.

Chief executive at Centrica, Sam Laidlaw, said that the average British Gas customer's gas consumption had fallen by  24 per cent as a result of the warmer weather.

Centrica stated that it expected the  average annual British Gas customer bill to be around £90 lower than it was last year. It also revealed it too had seen its profits fall - down by 35 per cent to £1.03 billion.

Commenting on the results, Mr Laidlaw said: "With challenging trading conditions on both sides of the Atlantic in the first half, earnings will be lower in 2014 than in 2013. However, the group is well positioned to return growth in 2015."

The announcement followed the publishing of Ofgem's latest Supply Market Indicator, which forecast that energy suppliers would make 5 per cent more in profits during the next 12 months than it had previously forecast just a month ago.

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