18th January: British gas hikes prices by 15% for 9.7 million customers[5] 21st February:

British gas profits soar to £571 million[1] British Gas profits rocket by 500% from £95m[2] in 2006 to £571[1] million in 2007

Energy giant making £1,086[3] in profits per minute - profit per customer increases sixfold from £5.93 to £36[4].

Widening margins: operating margin widens from 1.3% in 2006[2] to 8.8%[1] in 2007.

Shareholders satisfied: dividends up by 17%[1].

Customers caned: British Gas dual fuel bills rocketed by 85% or £514 from 2004 to 2006[13], fell by 19% or £208 in 2007[14] and have risen by 15% in 2008 - average dual fuel bill now £1,055, up £143 from £912 in 2007[6].

Pushed into poverty: British Gas price hike estimated to have plunged 192,000[7] more households into fuel poverty.

British Gas has unveiled profits of £571[1] million today - more than six times the £95 million[2] it made in 2006.

It means that the energy giant made £1,086[3]in profit every minute throughout 2007, with profit per customer increasing sixfold from £5.93 to £36[4].

The energy giant has revealed its huge gains only a month after hitting dual fuel households with a 15%[5] or £143[6] price hike and just over a week after dropping its claim to be the 'cheapest' dual fuel provider in the UK.

It is clear from today's results that British Gas is a business that places shareholders, not customers, at the top of its agenda, says uSwitch.com, the independent price comparison and switching service.

While customers now face average dual fuel bills of £1,055, up from £912 in 2007[6], dividends are increasing by 17%[1].

In 2006 British Gas was haemorrhaging customers - announcing losses of 1 million customers, one every 20 seconds[8].

In 2007, it successfully put a brake on that trend and managed to retain its market share (46.4% for gas and 22.4% for electricity)[1], spending £53 million on advertising in the process[9].

Consumers will have been attracted by British Gas' claim to be the cheapest dual fuel provider.

However this was based on the price of its online energy plan - Click Energy 4 - which very few customers were actually benefitting from.

In fact, only one in ten (10%) British Gas customers are on an online plan[10].

Consumers who moved to the giant in 2007 should check now that they did their homework properly and haven't fallen foul of the advertising small print.

Ann Robinson, Director of Consumer Policy at uSwitch.com, comments: "Today's announcement boils down to profits and price hikes and reveals the depth of the divide in how British Gas treats customers and shareholders.

This company has given up all pretence of keeping a healthy balance between the two.

"Consumers have a right to feel like Britain's biggest energy company is taking them for a ride.

Revealing huge profits only a month after hitting customers with an inflation busting price hike is like having a £571[1] million elephant in the living room - it was never going to go unnoticed.

British Gas was clearly hoping that consumers' memories are short, but their pockets deep.

"British Gas has today succeeded in putting itself and the energy industry back under the spotlight and it has also handed some hefty ammunition to those who are calling for the industry to justify its pricing.

If ever there was a wake-up call to British Gas customers this has got to be it.

You are not with the cheapest supplier, you are not with the best service provider[17] and you are certainly not on an equal footing with shareholders.

You do not have to put up with paying £143[6] a year more for your energy bills while Centrica shareholders enjoy a 17%[1] increase in dividends.

There are plenty of other suppliers out there who are prepared to offer you a better price, better service and a better deal - there are savings of up to £325[11] to be had.

All you have to do is switch." Further pricing blows are also expected from British Gas after it recently indicated that it is considering regional pricing for gas - a 'postcode lottery' policy which will see consumers paying different prices for gas based on where they live in the UK.

If this occurs, other suppliers are likely to follow suit - some consumers can expect to pay close to £100[12] more for their energy compared with others living elsewhere in the country.

Background to British Gas prices:Customers endured a three year run of price increases when dual fuel bills rocketed by 85% or £514[13] (2004 - 2006) Consumers were finally given a reprieve last year when the giant dropped prices by 19% or £208[14] However, British Gas' recent 15%[5] price rise completely wiped out last year's decrease after customers enjoyed only eight months of lower prices[15] British Gas now back in its old position as Britain's most expensive gas supplier[16].

For more information visit www.uSwitch.com or call 0800 093 06 07.

1.

Centrica plc 2007 Annual Report, for the period ending 31st December 2007 - published 21st February 2008.

Operating Profit and Turnover based on British Gas Residential results.

2.

Centrica plc 2006 Annual Report, for 12 month period ending 31 December.

Operating Profit and Turnover based on British Gas Residential results.

3.

Calculated by dividing the announced operating profit for British Gas Residential in 2007 by the total number of minutes in 2007 (525,600).

4.

Calculated by dividing the announced operating profit for British Gas Residential by the total customer accounts reported in the same period.

5.

From British Gas' pricing announcement 18th January 2008.

The price increases were justified by: "In the last six months of 2007, higher wholesale gas prices have reduced British Gas operating margins to around 1 per cent and at current wholesale prices would be loss making in 2008 without the increase.

As a result, and with immediate effect, British Gas electricity and gas retail prices will each increase by 15 per cent." 6.

9.7 million British Gas customer accounts based on YouGov research December 2007.

Survey conducted by YouGov online between 6th December and 13th December 2007.

A total of 6,918 UK energy customers who are involved in decision making regarding their gas and electricity supplier(s).

The figures have been weighted.

Global figures have been obtained by extrapolating based customer account numbers provided by the supplier.

Those who replied "Don't know" to which plan they are on were assumed to be on standard plans and are therefore included in standard plan figures.

7.

Annual bill sizes based on a medium user, consuming 20,500kWh of gas and 3,300kWh of electricity per annum, paying on receipt of bill, averaged across all regions.

2008 increase based on the difference between current average British Gas dual fuel bill size (£1,055) and the average British Gas bill size on the 1st January 2008 (£912).

8.

For every 1% rise in energy price, 40,000 households enter fuel poverty (Defra).

British Gas have an approx 32% energy market share; 32% of 40,000 is 12,800.

So for every 1% rise British Gas applies, 12,800 households enter fuel poverty.

With 15% rise across the board in 2008, this means 192,000 households that British Gas supplies have entered fuel poverty.

9.

Centrica plc 2006 Preliminary results - 22nd February 2007 - British Gas lost 1,029,000 net customer accounts in 2006.

According to British Gas a customer switches to them every 60 seconds.

This implies that 525,600 customers have switched to British Gas throughout 2006, gross.

Using the formula: 'Gross switched away' - 'Gross switched to' = 'Net switched away' we estimate that 525,600 + 1,029,000 = 1,554,000 customers will have switched away from British Gas, gross, this year.

This equates to 1 customer every 20 seconds.

10.

From 2007 full year data.

Includes TV, door drops, press, outdoor, direct mail, radio and internet media spend.

TV expenditure is available until 17 December 2007.

Direct mail, outdoor, door drops and cinema expenditure is available until 29 December 2007.

Radio expenditure is available until 16 December 2007.

Data from Thomson Intermedia Plc 2008.

11.

Customer account numbers for different plans based on YouGov research, 6-13th December 2007 among 6,918 adults who are involved in decision making regarding their gas and electricity supplier(s).

12.

Between 1st August 2007 and 16th January 2008, at least 10.5% of people who switched duel fuel energy provider with uSwitch.com saved at least £325.

13.

The largest regional variation for gas stands at £61.

The largest regional variation for electricity stands at £81.

Both as at 16/01/2008.

14.

Based on the difference in annual bill size between 1st January 2004 and 31 December 2006.

Annual bill sizes based on a medium user profile on a standard plan.

Customer using 3,300 kWh electricity and 20,500 kWh gas, paying on receipt of bill with bill sizes averaged across all regions.

15.

As per British Gas announcement 8th February, 2008.

Price decreases based on the difference in average annual bill size between the 1st Jan 2007 and the 31st December 2007.

Customer using 3,300 kWh electricity and 20,500 kWh gas, paying on receipt of bill with bill sizes averaged across all regions.

16.

8 months refers to the period between when British Gas reduced its prices in April 2007 and the price increase it announced in January, 2008.

17.

Based on a medium user, consuming 20,500 kWh of gas per annum for a single fuel standard gas tariff with British Gas, paying on receipt of bill.

Prices averaged across all regions.

18.

According to uSwitch customer satisfaction survey, conducted by YouGov online between 9th October and 12th October 2007.

1A total of 7,787 UK energy customers took part in the survey.

Customers were asked their opinions on a wide range of issues relating to satisfaction with their energy suppliers.

The figures have been weighted.

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