Profits up 10 per cent but British Gas plans another price increase... as bosses line up a £10million windfall

British Gas is today expected to warn of another punishing energy price hike – despite a massive surge in profits.
The news follows a six per cent rise in November.
The company’s profits for 2012 are predicted to soar 10 per cent on the previous year to around £590million, according to City forecasters.

Another price increase: British Gas is today expected to warn of another punishing energy price hike ¿ despite a massive surge in profits

They say the company’s owner Centrica will do even better, with a 15 per cent gain to roughly £2.8billion.
Despite this, price rises for its 12million customers could come as early as next winter.

Meanwhile, Centrica’s top five executives will collect a shares windfall predicted to top £10million.
Company chiefs will be given millions of shares under a long-term bonus scheme set up three years ago, which is linked to the firm’s performance.
Bosses will benefit from the fact that they will not receive the shares until after the end of the current tax year.
As a result, they will cash in on Chancellor George Osborne’s cut in the top rate of tax from 50 per cent to 45 per cent.

According to Centrica¿s accounts, its chief executive Sam Laidlaw will gain from the shares bonanza

The UK’s biggest energy supplier put up tariffs six per cent in the teeth of the winter chill, pushing up bills by £80 to an average £1,350 a year.
However, executives are now expected to say higher prices are inevitable because of the rising wholesale cost of gas and government green initiatives.
Alastair Buchanan, head of energy regulator Ofgem, has warned of an energy crisis as Britain becomes more reliant on expensive imported gas.
Price rises will also go to subsidies for wind farms, nuclear power stations and free insulation for the vulnerable.
According to Centrica’s accounts, its chief executive Sam Laidlaw, finance chief Nick Luff, head of energy Mark Hanafin and the head of its US arm, Chris Weston, will gain from the shares bonanza.
Another beneficiary is the departing managing director of British Gas, Phil Bentley. His total departure package could be worth £10million.
Company sources said the shares are part of a long-term incentive, not a windfall, while the date of the hand-over was decided long before the 50 per cent tax rate was scrapped.
Centrica has tried to pre-empt a furore over pay with a study on its positive impact.
Mr Laidlaw said: ‘At a time of uncertain economic prospects, our activities across the UK are even more important to secure employment, put the supply chain to work and contribute our fair share of tax.’
The company employs some 33,000 people in the country, while its tax bill is expected to be around £1.1billion in 2012. Unlike many rivals, it is wholly British and pays its tax here.
Richard Lloyd, executive director at consumer champion, Which?, said: ‘People are bound to question whether they’re paying a fair price for energy when they see big profits announcements.
Centrica’s analysis won’t change that view as record-high bills land on millions of doormats.