Centrica – the owners of British Gas – has reported losses of £849m for 2019, and has blamed the energy price cap and falling gas prices. Following this announcement, the share price of the company fell by 15%.
In comparison, in 2018 the firm reported profits of £987m.
The price cap on electricity and gas bills came into effect in January 2019 and was one of the flagship policies of Theresa May’s government. Her aim was to end “rip-off” prices.
Iain Conn, Group Chief Executive of Centrica comments: “2019 was a challenging year with operating profit and earnings materially impacted by a challenging environment, most significantly the implementation of the UK default tariff cap and falling natural gas prices. Against this backdrop, Centrica delivered growth in customer accounts, higher net promoter scores and significant cost efficiencies in excess of our target.”