Anger at dividend as gas bills rise
British Gas parent Centrica added fuel to the flames over record price hikes after announcing a £144.6 million dividend payout for its shareholders.
The 16% jump in the dividend came as the group posted better than expected half-year profits of £992 million - a day after hitting millions of customers with a record 35% jump in gas bills.
Chief executive Sam Laidlaw defended the dividend as a "purely mechanical" payout based on the company's strong performance during the previous year.
But the move comes as the average dual fuel customer's annual bills have gone up more than £400 to £1,317 since the start of the year, and sparked anger from consumer watchdogs.
Energywatch campaigns director Adam Scorer said households would be "staggered" at Centrica's profits, adding: "Customers will be outraged to learn that while they ponder how to make ends meet Centrica's shareholders are enjoying an increase in their dividends."
Centrica is paying a dividend of 3.9p a share on more than 3.7 billion shares in issue - 30% of last year's payout after its £1.95 billion profits in 2007. Mr Laidlaw said the group had to reflect shareholder interests as well as customers.
"This is a business that has got a million shareholders - a lot of pension funds and people have got their savings invested in British Gas shares and we have to look after them," he said.
The group's £992 million profits are 19% below last year after the group felt the impact of rising wholesale costs at British Gas, where profits fell 69% to £166 million.
The UK's biggest domestic energy supplier, which has 15.9 million customers, has also lifted electricity prices 9% alongide its mammoth rise in gas bills.
The group said the price increases were necessary to restore "reasonable profitability" to British Gas and invest in additional gas and power assets.