British Gas profits rise by 98%.

by Katie Murdoch

The energy giant British Gas has made operating profits of £585m for the first half of 2010, up 98% from the same time last year.

The company supplies gas to over 50% of the country's households, and is likely to have benefited from the cold winter, as well as from gaining 400,000 new customers since 2009.

Gas use this winter was up 8% from the same period in 2009. However, statutory body Consumer Focus said such a rise in profits should "sound alarm bells".

Audrey Gallacher, head of Energy Policy at the watchdog, said:

"We are concerned that energy firms may actually raise prices this winter. With only small price cuts for customers in the last two years, despite wholesale prices being half what they were at their peak and beginning to fall again, customers will rightly be outraged if this happens.”

British Gas said the jump in profit was a result in an increase in customers using more power, alongside an expected £100m ongoing savings programme of cost cuts. The company statement said: "Overall, we expect the full-year results for 2010 to be heavily weighted towards the first half of the year."