British Gas Profits

Discussion in 'Current Affairs, News and Analysis' started by Giancarlo_Badass, Jul 28, 2010.

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  1. The media have whipped themselves into their usual frenzy because British Gas's profits have doubled compared to last year, as they always do with others (BT/Water/Electricity/Oil/Supermarket Companies etc).

    Now, while the doubling of profit may sound "horrific" what is that profit as a percentage of Annual Turnover? It it was around 30%, that, I understand, is around normal whereas if it was above 50% that would be entering the "horrific" category!

    Anybody any other views?
  2. It's a business, surely the idea is to make a profit?
  3. seaweed

    seaweed LE Book Reviewer

    Without profit, no capital investment, and without capital investment, eventually no more GAS. When there is eventually enough net profit after investment and tax the bloated plutocrats who pocket the dividends (after more tax is taken off) are mostly your and my pension funds.

    Socialist interference in this process in the case of WATER has cut off investment in stopping leaks, whereby thanks to Govt meddling vast amounts of expensively treated water goes to waste raising the cost of what is left.

    Mind you, some utilities could usefully look at the quality of their process - there is a patch in the road a little way from my house which covers the repair to the repair to the repair to the ELECTRICITY supply that wasn't done right the first time.
  4. Price of oil was at it's lowest for many years and profits were low. This year it's doubled and so have profits.
  5. Gas and electricity are competitive, there are other firms that can offer altenative service.

    What grips my $hit is water companies. There is no competition and they are free to raise their prices as and when. Water should never have been taken out of public ownership. They cream off the money to reward shareholders instead of spending it renewing the infrastructure.

    Gas as is oil is becoming harder to source as it is. Look at BP they are now being forced to drill may thousands of feet below the seat at the very edge of technological knowledge to extract it, running the risk of huge ecological disasters.

    Soon as Worldwide recovery takes off (and it is not a given it will) then demand for oil will once again reduce supply and the price will rocket....

    Welcome to the twilights years of what will in 100 years from now be known as The Oil Age.
  6. seaweed

    seaweed LE Book Reviewer

    Wrong. OFWAT controls the water companies, and does it badly, with the result in my post. And the shareholders (a) include pension funds, and where else than in profitable companies can they put their money, and (b) are necessary for the survival of the company. Nationalised outfits have to go cap in hand to the Govt for any money they need for capital investment which means they cannot plan ahead, which is where all the leaks came from in the first place. I get my water from a company that never has been nationalised and is therefore a success and my water costs £5 a month on a meter which seems not too bad really.
  7. Whatever area you live in at some time the water supply would have been in public ownership, even if your house is only a few Months old the supply will be tapped into mains that would have been within the control of a public Company.

    You have a compelling argument as to why we should beware of public utilities and one I am broadly in agreement with, trouble is the local supplier is the only horse in town.
    My water costs roughly £55 a Month and yes we are on a meter United Utilities also charge me for running it away down the drains as I suppose they do everyone.
    End of the day it never stops raining where I live in the winter and there are numerous streets where the mains leak, many of these have done for years. UU have now instituted a hosepipe ban!!!
  8. seaweed

    seaweed LE Book Reviewer

    My water company has never been owned by the State and is justifiably proud of that. The other bit, Southern Water which takes the dirty water away, has been though. Perhaps I should have explained that; SW charges £16.80 a month for sewerage etc, including a discount for being on a meter. And of course you may have a larger household than Mr & Mrs Seaweed in their empty nest with no swimming pool etc.