Centrica, owner of British Gas, will cap profits to reduce energy bills – report

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Sep 10 (Reuters) – Britain’s biggest energy supplier Centrica (CNA.L) is considering a voluntary profit cap in a bid to cut household bills, The Guardian newspaper reported on Saturday, citing chief executive Chris O ‘Shea.

O’Shea said he wanted British Gas owner Centrica to become the first company to sign new, renegotiated contracts with the government for its power generation, the newspaper reported. (https://bit.ly/3Qyf3yh)

Britain’s new Prime Minister Liz Truss has pledged to cap consumers’ energy bills for two years, a move she says would protect consumers and businesses. Read more

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O’Shea also said Centrica is willing to transition its five nuclear plants to new-type contracts. It holds a 20% stake in the operational British nuclear fleet.

“We are obviously in this business to create value for all of our stakeholders, customers, countries [and] colleagues. But it’s not about maximizing profits this year; it’s about having a long-term sustainable business,” O’Shea said.

Centrica posted a huge increase in first-half profit, boosted by asset sales and soaring energy prices. Its adjusted operating profit for the first six months of 2022 rose to 1.34 billion pounds ($1.55 billion), from 262 million a year earlier.

($1 = 0.8630 pounds)

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Reporting by Maria Ponnezhath in Bangalore; Editing by Jason Neely and Alexander Smith

Our standards: The Thomson Reuters Trust Principles.

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