That's the Beauty of Gas

The advantages of the free market are once more in evidence as British Gas regretfully announces a five hundred per cent rise in profits. Between January and March last year, the price of wholesale gas fell because of mild weather and a new pipeline; but the company was nonetheless obliged to increase its prices by fifteen per cent last month. "Sharp falls in the price of gas in winter 2006 led to unexpected profits in British Gas early in 2007, but rising costs later in the year also mean that analysts expect margins in the second half to be very thin," said a spokesbeing; it is not clear whether the margins will be thin relative to the five hundred per cent profits, the fifteen per cent increase, or the customers who have to decide between heating and eating. We must also not forget that British Gas, like all energy companies, is making massive sacrifices because of the need to "invest heavily to improve ... environmental performance and develop renewable power". British Gas has apparently made a start by "scrapping its final-salary pension scheme". However, they do run a great many call centres, which no doubt explains why British Gas "receives up to five times as many complaints as its rivals".