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Centrica will pass on increased earnings from this winter's cold weather to customers in cheaper bills, the company said in a management update on Monday.
Domestic gas consumption was 18 per cent higher in the first four months of 2013 than the same period last year and electricity consumption up 3 per cent.
“The Board has determined that any benefit arising from the exceptionally cold weather will be used to maintain our price competitiveness,” it said. The firm will deliver full year profits in line with expectations, allowing second half profits to dip and balance out a rewarding first half.
In business energy supply, “continuing competitive market conditions are putting some pressure on margins”.
Centrica’s share in nuclear generation “continues to perform well”, with output up 8 per cent on 2012, to 4.2TWh. Low spark spreads make market conditions “challenging” for gas-fired power, which is broadly unchanged.
The firm has installed all the turbines at its 270MW Lincs offshore wind project, which is expected to be fully up and running later this year. It is discussing with government an economic framework for its proposed 580MW Race Bank windfarm, but this “may take some time to resolve”.
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