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		</div><p><a href="http://londonglossy.com/wp-content/uploads/2011/02/gas-profits-set-to-ignite-anger.jpg"><img class="alignnone size-full" title="British Gas parent Centrica is expected to unveil record profits" src="http://londonglossy.com/wp-content/uploads/2011/02/min-gas-profits-set-to-ignite-anger.jpg" alt="British Gas parent Centrica is expected to unveil record profits"/></a></p>
<p>Utility giant Centrica is likely to inflame anger over high energy bills when its residential arm British Gas unveils record profits.</p>
<p>The UK&#8217;s biggest gas supplier is expected to report a 24% hike in operating profits of £740 million, according to analyst Redburn, just over a couple of months after the company pushed up bills by 7%.</p>
<p>BG&#8217;s parent company Centrica will also post record profits of £2.4 billion, Redburn said, but these will be driven by its gas exploration operations. The company dividend is also expected to increase, reportedly by 10%.</p>
<p>The energy giant has put recent price hikes down to soaring wholesale prices and has pledged to spend £15 billion on much-needed investment.</p>
<p>Ofgem, the energy watchdog, is leading an investigation into energy giants&#8217; balance sheets after discovering average profit margins had increased as companies claimed they had no choice but to lift bills.</p>
<p>Ofgem found average margins on a standard dual-fuel tariff rose to £90 in November, from £65 in September. Around eight million British Gas customers were hit with a bill hike on December 10, lifting an average customer&#8217;s dual-fuel bill from £1,157 to £1,239.</p>
<p>The findings of the Ofgem inquiry will be published next month, with the potential outcome being a referral to the Competition Commission. Peter Atherton, analyst at Citigroup, warned commentators were &#8220;unlikely to let Centrica enjoy record profits without criticism&#8221; in the wake of rising prices, two cold winters in a row and squeezed household incomes.</p>
<p>With regards to the investigation, he added: &#8220;In our view a referral would be hard to justify, but for Ofgem it may have attractions.&#8221; But Centrica has defended its stance, claiming to be one of the most transparent of the &#8220;big six&#8221; energy firms.</p>
<p>Furthermore, British Gas, according to Redburn&#8217;s forecast, is expected to report a 48% decline in second-half profits, from £300 million to £155 million &#8211; the company&#8217;s lowest second-half profit in three years.</p>
<p>Centrica also claims British Gas prices were 0.5% lower at the end of 2010 than the start of the year after the supplier cut bills in February.</p>
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