British Gas profits soared by 500% to £571m last year, a massive rise from �95m in 2006.

Its owner, Centrica, reported a 40% increase in year profit, up to £1.95bn from £1.39bn.

The figures look certain to generate an outcry from consumer groups, which saw gas and electricity prices increase on average by 15%.

The news comes just weeks after British Gas hit around 13 million customers with energy bill hikes.

At the time it announced the price increases British Gas blamed higher wholesale energy prices and said that, without the rise, if wholesale prices stayed at the current level, it would make a loss on the residential operations in 2008.


Centrica Chief Executive Sam Laidlaw said the rise had "created a much more difficult environment for all energy retailers in the UK towards the end of 2007 which materially impacted margins in the residential supply business".

Adam Scorer, energywatch Director of Campaigns, said: "No-one is going to argue that energy companies don't need to make a profit.

"However, British Gas customers will want to tear their hair out when they hear the scale of these profits and compare them with their own rising bills."

He added: "It is perfectly true that there is volatility in wholesale energy markets. But it seems equally true that such volatility hits consumers not shareholders. Consumers will feel justified in claiming that they are being taken for a very rough ride by energy companies."

(CD/JM)