No more cuts in pipeline from British Gas

British Gas has said it is not planning further price cuts, despite making profits of [pound]533m in the first half of the year.

Parent group Centrica said this was a one-off, and that profitability would now fall as wholesale gas became more expensive.

The profits boost, compared with a [pound]143m loss this time last year, was the result of higher margins: cheaper wholesale costs were not passed on to customers until March and April. The company has cut prices twice this year.

However, Centrica chief executive Sam Laidlaw (pictured) said wholesale gas prices had begun to rise again, and that the second half of the year would be much tougher.

He added that price cuts were "unlikely."

"This really bring home British Gas's 'I'm alright, Jack' attitude," said Ann Robinson from the price-comparison service uSwitch.

"It has reported big profits in part because of lower wholesale prices and in part because of lower operating costs. But the chief executive has made it crystal clear that because of 'uncertainty and current forward prices for the coming winter', the company has no intention of cutting prices again."

She added that the issue was industry-wide. "It involves all the big six suppliers. There is still a considerable sum of money outstanding to households because of inadequate price cuts made by energy suppliers this year."

Consumer watchdog Energywatch said British households and businesses were still paying too much for their energy, and that it was clear companies had room to bring prices down further.

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