British Gas has also confirmed that its customer numbers have fallen by another 2% taking the total to 6.9 million last year.
Increased competition from smaller energy suppliers was the main driving factor for such a decline further displaying just how competitive the energy supply market has become.
Relatively poor customer service scores in comparison and higher tariffs than those offered by smaller suppliers also played their part.
Also read: How to Improve Consumer Trust in Energy Suppliers?
The Covid-19 pandemic also impacted Centrica as it caused a collapse in global commodity prices resulting in the company having to pay a £1.6 billion impairment charge and suffering a pre-tax loss of £577 million.
Centrica’s has lost three-quarters of its market value after its share price plummeted from an all-time high of more than 400p in 2013 to a record low of just over 32p a share last year. The company has crashed out of the FTSE 100, slashed shareholder dividends twice since 2015, and last year promised to cut 5,000 jobs.
As a result, Centrica’s CEO Chris O’Shea announced that he will launch a major transformation of the company, just a year after it completed a five-year turnaround plan which was launched by former boss Iain Conn in 2015.
“It won’t be easy. Our journey to transform has only just started, as we seek to restore shareholder value by improving customer experience, retention and employee engagement while maintaining a strong balance sheet,” said O’Shea.
The company said that the issues faced by the company could continue throughout 2021 as negative headlines caused by the staff strike led by the GMB trade union and its decision to hike energy prices impact.
The decision to raise prices on its of its standard variable tariffs could result in more customers jumping ship to cheaper alternatives.
Dyball Associates will keep you informed of the latest changes and our team of energy market consultants can guide you through the steps to enter the UK energy market. Whether you’re looking for electricity and gas systems or support on starting an energy supply company, Dyball Associates can help.
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