November 24, 2017
On Thursday British Gas announced that more than 800,000 customers have left them since June, putting shares on tracks for what analyst predict will be the UK's biggest energy supplier's worst day in history.
In a trading statement released, British Gas parent company Centrica said it had lost 823,000 customers between June and October. It's thought the customer exodus could be down to an increase of 12.5% for loyal customers in September.
The mass departure leaves British Gas with 13.1m accounts, meaning it will still be the market leader even after its rival Big Six supplier's nPower and SSE merge to create a company with 11.5m accounts.
After the announcement, Centrica shares dropped 15.5% making it the company's biggest ever one-day fall. Despite a bad second half of 2017, the Big Six supplier expects its full-year adjusted operating profit for 2017 to be broadly in line with the previous year following a £750m "cost efficiency programme".
The company is expected to report an adjusted operating profit of around £80m, down from £221m last year.
Iain Conn, Centrica chief executive, said:
"Although some aspects of our delivery in the second half of 2017 have been disappointing, I remain encouraged by our progress in implementing our strategy.
"The balance sheet has been materially strengthened, and we continue to focus on improving our underlying performance. We have also provided a broad and definitive set of proposals this week to improve the UK energy market for customers and look forward to engaging with the Government and regulator in the coming weeks."
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Posted on November 24, 2017 at 12:42 PM