British Gas profits surge 50% as cash-strapped elderly freeze

British Gas faces a backlash as it prepares to announce a 50 per cent surge in profits on the back of a winter of crippling energy bills.

The UK's largest supplier, with 15.7million customers, has made profits of more than £550million in the past year.

Thousands of elderly, meanwhile, have been unable to afford to keep warm during the coldest winter in 30 years.

But critics say British Gas - together with the other members of the 'Big Six' club of energy firms - should have done more to cut bills before the winter.

Wholesale energy prices have fallen by 60 per cent from their peak in the middle of 2008.

However, customer bills have come down by less than 10 per cent.

There were 36,700 more deaths among the elderly last winter than in warmer months, according to the Office of National Statistics.

This was up 12,000 on the previous year.

At the same time, there are millions of pensioners among the 5.4million who are in fuel poverty.

This is the group who spend more than 10 per cent of their disposable income on heat and light.

The Age Concern and Help the Aged charity condemned the rise in winter deaths, which it links to 'cash-strapped older people turning down the heating'.

Higher bills: The cold weather is forcing households to turn up their heating

Cold snap: The UK is bracing itself for more snow over the weekend

While the profits of British Gas - which declares its profits on Thursday - and UK-based provider Scottish & Southern Energy are transparent, the same is not true of the other major firms.

Companies such as nPower and Eon hide rising profits within the accounts of their German parent companies. The same is true of EDF, which is French, and Scottish Power, which is Spanish-owned.

Official customer body Consumer Focus and the Conservatives have called for an inquiry into the industry and the failure to pass on wholesale price reductions.

Price comparison website uSwitch.com spokesman Ann Robinson said: 'Consumers can still expect their household energy bills to be around £270 higher than just a couple of years ago.'

The household average bill is usually around £1,200 a year, but could be around £100 higher this year because of the weather.

Christine McGourty, director of Energy UK, which represents the major suppliers, rejected claims of profiteering. She said much of the gas being used this winter was bought two years ago, when wholesale prices were higher.

It comes as Britain was warned to brace itself for a big chill over the weekend – forcing homeowners to turn up their heating.

Freezing conditions are set to continue over the weekend with some areas dropping to overnight lows of -6c (21f).

Forecasters are also predicting further snow on Saturday and Sunday as the UK faces its coldest February for 24 years.