Latest news with #ChrisOShea
The Independent
2 hours ago
- Business
- The Independent
British Gas household supply arm earnings fall after £50m warm weather hit
British Gas half-year earnings at its household supply arm have fallen as it took a £50 million hit from slumping energy demand due to warmer weather. The Centrica-owned group said underlying earnings for the residential energy supply business dropped to £133 million in the six months to June 30, down from £156 million a year earlier. Warmer-than-normal weather, as well as lower energy prices, knocked the result at the supply business as households turned down their central heating thermostats. The group said the division suffered a £50 million blow to earnings due to 'unseasonably warm weather conditions across the UK and Europe, with April being the third warmest on record'. But it said it halted the number of customers leaving British Gas, with a 1% rise in households supplied to 7.5 million as at the end of last month. The wider Centrica business reported underlying earnings of £549 million, nearly half the £1.04 billion posted a year earlier. On a reported basis, Centrica swung to an operating loss of £69 million, from £1.68 billion earnings a year ago. Chris O'Shea, group chief executive of Centrica, said: 'I'm pleased with the progress we've made in some areas during the first half despite a challenging backdrop.' He added there was 'still much more to do across the group'. 'That's why we're accelerating our efforts to make Centrica a leaner, more agile organisation, transforming the way we do business, allowing us to deliver on our full potential,' he said. Efforts include using artificial technology (AI) to 'drive customer retention and support commercial growth' as well as simplifying the group by cutting its overheads, according to the group. The results come after Centrica earlier this week announced it was investing £1.3 billion for a 15% stake in the new Sizewell C nuclear power plant in Suffolk.
Reuters
3 hours ago
- Business
- Reuters
Centrica's first-half profit falls due to mild weather, lower energy prices
July 24 (Reuters) - British Gas owner Centrica (CNA.L), opens new tab posted a drop in first-half adjusted operating profit on Thursday, hit by mild weather, falling wholesale energy prices and weaker returns from gas storage. British utilities have been facing increasing challenges in recent months with mild weather hitting energy demand, low wind speeds impacting renewable output, and subdued wholesale prices squeezing margins. "There is still much more to do across the group, including improving our commercial performance in services & solutions," CEO Chris O'Shea said in a statement, as the division's customer base fell 2% in the first half of the year. Centrica, which disclosed a 15% stake in Britain's Sizewell C nuclear plant this week, reported an adjusted operating profit of 549 million pounds ($744.83 million) for the six months ended June 30, down from the 1.04 billion pounds reported a year earlier. ($1 = 0.7371 pounds)
The Sun
3 days ago
- Business
- The Sun
Energy boss slams Ed Miliband's ‘abominable' plans to slap tax on gas boilers
ED Miliband's proposal to slap higher taxes on homes with gas boilers was branded an 'abomination' yesterday. The Energy Secretary's plans would hit the poorest hardest, British Gas boss Chris O'Shea warned. 1 It comes as Mr Miliband considers stripping green taxes from electricity bills to encourage more people to fork out for expensive heat pumps. But under the plan, the costs would instead be passed on to gas customers, sending boiler running costs soaring. Mr O'Shea, chief executive of British Gas owner Centrica, called the proposal 'preposterous' and said it would cause a 'terrible distortion of the market'. Instead he urged the Energy Secretary to focus on protecting households from the crippling costs of Net Zero. He told The Telegraph: 'The idea that you'd put the levies on gas bills will mean better-off people with heat pumps will be subsidised by those who are poorer with gas boilers. 'That's nonsense.' 'I think those of us with the broadest shoulders should help those who have the most need.' 'To put taxes on gas bills would be an abomination. It doesn't make any sense.' Experts have warned that shifting taxes from electricity to gas would drive up average gas bills by £120 a year. Mr O'Shea also blasted Mr Miliband's repeated claim that Net Zero would lower energy bills by £300. He said: 'The energy transition is not cheap and not simple. 'If it were, then we would have done it already.'
Yahoo
4 days ago
- Business
- Yahoo
Britain's gas storage site threatened with closure this winter
Britain's largest gas storage site risks closure by the end of the year unless the Government steps in to provide financial support. Centrica, which owns the Rough storage facility, has warned of the potential shutdown this winter as it battles steep losses at the site. Rough represents half of Britain's gas storage capacity and its closure would be a significant blow to the resilience of the country's energy system. The UK remains reliant on gas to help back up intermittent wind and solar, particularly over winter. Chris O'Shea, the chief executive of Centrica, which owns British Gas, warned the storage site was expected to lose £100m this year and said: 'We can't sustain that.' He told The Telegraph. 'I would be willing to close it. My job is clear. It is to grow the company, grow jobs, grow profits, and I take that seriously. 'We've made money over the past couple of years. But we're now pouring £100m into this asset that we could invest in other things.' Centrica aims to redevelop the 40-year-old site to be able to store hydrogen alongside natural gas. However, Mr O'Shea said: 'The market at the moment is not giving the right signals to invest in storage.' The company has asked ministers for a so-called cap-and-floor mechanism to help fund the £2bn project. While Centrica would provide the investment up front, the mechanism would effectively mean guaranteed funding underwritten by a levy on consumer bills. 'I want a mechanism that encourages investment in Rough,' Mr O'Shea said. 'We have seen it in nuclear, but let's extend that to other assets that are needed to bring energy resilience.' Mr O'Shea said he had been encouraged by recent talks with the Government. He praised Rachel Reeves and Ed Miliband for highlighting the importance of gas storage as part of the Government's industrial strategy. However, the call for state support comes at a delicate time for Labour. Ms Reeves's Budget has been left in tatters by a series of policy about-turns and poor economic data, forcing her to find billions rather than consider further spending. Meanwhile, Mr Miliband is under pressure to demonstrate progress towards meeting his promise of lowering energy bills by £300 this parliament. It suggests the Energy Secretary may be wary of signing off on a measure that add more levies on to bills. Mr O'Shea warned the issue of support for Rough was urgent and could not be put off. He said: 'I think we've got to see something [from the Government] probably this year. If we get towards the end of the year and we've got a situation whereby we've got no prospect of making a profit, then we're just throwing good money after bad. 'It would be like a charitable donation and that's not our business. If we were to do that, then the shareholders would act quite quickly.' 'No one likes a freeloader' Centrica has already stopped filling the facility off the Yorkshire coast amid concerns about the site's financial viability. Mr O'Shea said Government intervention was key to safeguarding Britain's energy security. He said: 'If Rough closes, then the UK has just six days of gas storage available, compared to 100 in France, Netherlands and Germany. 'If we get into a crisis and the UK hasn't invested in gas storage, then I am not sure it will flow from the Continent. 'Politically, if you're the prime minister of France, Germany, and you look at a country that hasn't invested in gas storage, then I am not sure that will work. There is a need for us to recognise the risk that no one likes a freeloader.' The potential closure of Rough risks reviving concerns over Britain's strained energy supplies, particularly as the country moves to a system more reliant on intermittent renewables. Gas power stations remain crucial for backstopping Britain's energy system when wind and solar generation fall short, something that happens during so-called 'dunkelflaute' periods of low wind and limited light that occur over winter. 'We have had pretty warm winters in the past couple of years, and that has helped us,' said Mr O'Shea. 'If we'd had cold winters, then we would have struggled. Would you feel comfortable driving in the red zone in the revs all the time? I don't feel comfortable with an energy system that has such a small margin for error.' The closure of Rough would lead to the potential loss of hundreds of jobs at the site. A Government spokesman said: 'The future of Rough storage is a commercial decision for Centrica, but we remain open to discussing proposals on all gas storage sites, as long as it provides value for money for taxpayers.' Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Telegraph
5 days ago
- Business
- Telegraph
Britain's gas storage site threatened with closure this winter
Britain's largest gas storage site risks closure by the end of the year unless the Government steps in to provide financial support. Centrica, which owns the Rough storage facility, has warned of the potential shutdown this winter as it battles steep losses at the site. Rough represents half of Britain's gas storage capacity and its closure would be a significant blow to the resilience of the country's energy system. The UK remains reliant on gas to help back up intermittent wind and solar, particularly over winter. Chris O'Shea, the chief executive of Centrica, which owns British Gas, warned the storage site was expected to lose £100m this year and said: 'We can't sustain that.' He told The Telegraph. 'I would be willing to close it. My job is clear. It is to grow the company, grow jobs, grow profits, and I take that seriously. 'We've made money over the past couple of years. But we're now pouring £100m into this asset that we could invest in other things.' Centrica aims to redevelop the 40-year-old site to be able to store hydrogen alongside natural gas. However, Mr O'Shea said: 'The market at the moment is not giving the right signals to invest in storage.' The company has asked ministers for a so-called cap-and-floor mechanism to help fund the £2bn project. While Centrica would provide the investment up front, the mechanism would effectively mean guaranteed funding underwritten by a levy on consumer bills. 'I want a mechanism that encourages investment in Rough,' Mr O'Shea said. 'We have seen it in nuclear, but let's extend that to other assets that are needed to bring energy resilience.' Mr O'Shea said he had been encouraged by recent talks with the Government. He praised Rachel Reeves and Ed Miliband for highlighting the importance of gas storage as part of the Government's industrial strategy. However, the call for state support comes at a delicate time for Labour. Ms Reeves's Budget has been left in tatters by a series of policy about-turns and poor economic data, forcing her to find billions rather than consider further spending. Meanwhile, Mr Miliband is under pressure to demonstrate progress towards meeting his promise of lowering energy bills by £300 this parliament. It suggests the Energy Secretary may be wary of signing off on a measure that add more levies on to bills. Mr O'Shea warned the issue of support for Rough was urgent and could not be put off. He said: 'I think we've got to see something [from the Government] probably this year. If we get towards the end of the year and we've got a situation whereby we've got no prospect of making a profit, then we're just throwing good money after bad. 'It would be like a charitable donation and that's not our business. If we were to do that, then the shareholders would act quite quickly.' 'No one likes a freeloader' Centrica has already stopped filling the facility off the Yorkshire coast amid concerns about the site's financial viability. Mr O'Shea said Government intervention was key to safeguarding Britain's energy security. He said: 'If Rough closes, then the UK has just six days of gas storage available, compared to 100 in France, Netherlands and Germany. 'If we get into a crisis and the UK hasn't invested in gas storage, then I am not sure it will flow from the Continent. 'Politically, if you're the prime minister of France, Germany, and you look at a country that hasn't invested in gas storage, then I am not sure that will work. There is a need for us to recognise the risk that no one likes a freeloader.' The potential closure of Rough risks reviving concerns over Britain's strained energy supplies, particularly as the country moves to a system more reliant on intermittent renewables. Gas power stations remain crucial for backstopping Britain's energy system when wind and solar generation fall short, something that happens during so-called 'dunkelflaute' periods of low wind and limited light that occur over winter. 'We have had pretty warm winters in the past couple of years, and that has helped us,' said Mr O'Shea. 'If we'd had cold winters, then we would have struggled. Would you feel comfortable driving in the red zone in the revs all the time? I don't feel comfortable with an energy system that has such a small margin for error.' The closure of Rough would lead to the potential loss of hundreds of jobs at the site. A Government spokesman said: 'The future of Rough storage is a commercial decision for Centrica, but we remain open to discussing proposals on all gas storage sites, as long as it provides value for money for taxpayers.'
