British Gas owner Centrica has just announced results at a time when the country’s regulators are asking the energy companies to pass on more quickly to the customer the drop in wholesale prices.

But whilst Centrica admit in their financial statement that there was a substantial drop in both electricity and gas wholesale prices in 2009, it warns that they will be heading north again in 2010.

In their performance review, Centrica said:
“In 2009, energy was once again never far from the headlines. Wholesale UK gas and electricity prices both declined sharply from the levels seen during 2008 and while the forward curve indicates that they will rise again during 2010, it is clear that we are in a very different commodity price environment from that experienced in 2008.

“This comes at a time when the UK Government recognises that unprecedented levels of investment will be required across the industry if security of supply is to be maintained and tough environmental targets met.”

As for the financial performance of Centrica, for 2009 it recorded revenues of £21.96 billion, up 5% from 2008. Operating profit rose from £661 million in 2008 to £856 million in 2009.

As for the year’s achievements, Centrica made a major acquisition which increased its gas and oil reserves by 50%. It also took a strategic position in nuclear power by acquiring a 20% equity in British Energy, a company which owns and operates all of the UK’s nuclear power stations.

It highlighted a strong performance from British Gas, which included operational improvements and price reductions. It pointed out that there were some 550,000 additional product holdings, which included 164,000 additional households taking both energy and service products.

What’s more, British Gas’s commitment to the growing emerging energy efficiency market would create 1,100 new jobs in 2010.

Sam Laidlaw, Chief Executive of Centrica, said:
“2009 was a year of significant achievement for Centrica with British Gas now transformed and the completion of the Venture Production and British Energy transactions. Our existing strategic priorities have now been achieved, and today we have announced new priorities to build on the robust, vertically-integrated business model that we have in place. Centrica is well-positioned to pursue growth opportunities and lead the drive to a low-carbon world, whilst maintaining the financial discipline to secure strong returns on our investments.”

Guest Article by Neil Camp

Centrica, the owner of British Gas, is one of 150 companies that is backing a campaign initiated by the Government to create a further 85,000 ‘opportunities’ to get young people into work.

The opportunities include apprenticeships and form part of the ‘Backing Young Britain’, a cross-Government campaign bringing together public and private industry, and the voluntary sector, to provide more opportunities for young people to find work, or training, or gain work skills or experience.

Sam Laidlaw, Chief Executive of Centrica, said:
“We are pleased to support the Backing Young Britain Campaign. Our programmes are all about investing in people, especially young people, and providing them with the skills to implement the technologies that will help our customers cut their energy bills and reduce their carbon footprint.

“Our business depends on highly trained people to give the best possible service and advice to our customers. Our apprenticeship programme and the creation of skilled jobs sit at the heart of our business’ growth plans. We are proud to be creating 3,200 new jobs by 2012 and growing our apprentice numbers by 1000 over the next 18 months.”

The Government campaign, backed by Prime Minister Mr Brown, will see £1 billion invested in the hope of creating 100,000 new jobs for the young, plus a further 50,000 jobs in ‘unemployment hotspots’.

The campaign comes at a time when latest figures show that about 935,000 young people in England are not in employment or training.

The Campaign kicked off with an event at Birmingham City FC’s stadium featured a ‘Question Time’ panel in which Sam Laidlaw joined Yvette Cooper, Works and Pension Secretary, Martina Milburn, chief executive of the Prince’s Trust, Jill Youdis, director of talent at Virgin Media, and Imran Hakin, inventor and entrepreneur, who won funding from two ‘dragons’ in the BBC TV Dragons Den programme in 2007.

The panel faced questions from an audience of around 250 young people. They ranged from school leavers and apprentices, to university graduates and people on work experience placements. Also in the audience were British Gas’ apprentice of the year Adam Grimes and Centrica graduate Katie Alloway.

It also gave British Gas a chance to talk about their Energy Academy which overseas their training programmes, including highlights:

• Outstanding Grade 1′ (Ofsted);
• five training sites across the UK;
• more than 5,000 apprentice engineers trained to NVQ Level 3 equivalent’
• £30 million invested per year;
• £60 million to be invested in training over the next two years;’
• £30,000 invested in training each apprentice;
• 96% of Academy recruits complete their training;
• 90% or recruits remain with the company for five years or more;
• 50 applications for each position.

Guest Article by Neil Camp

British Gas owner Centrica has been reported to be buying a stake in British Energy, the U.K. nuclear power, for some £2.3 billion.

This represents 20% of British Energy, which is owned by French company EDF, but is less than the 25% (for £3.1 billion) than was first reported.

Talks are said to have stalled after the world recession forced down electricity prices. And the deal which saw EDF snap up British Energy for £12.5 billion was only itself concluded in January 2009.

EDF and Centrica have ambitious plans to grow the business which currently operates eight nuclear power stations throughout the U.K. At the heart of the expansion is a plan to build four new nuclear power stations on the existing sites. This will be necessary in order to meet the government’s plan to generate more power from nuclear than fossil fuels.

The current eight British Energy nuclear sites are at Dungeness B, Hartlepool, Heysham 1, Heysham 2, Hinkley Point B, Hunterston B, Sizewell B and Torness. Together they generate around 15% of the U.K.’s domestic energy.

The four new plants are expected at Hinkley Point in Somerset and Sizewell in Suffolk. Depending on regulatory permissions, the first new plant is meant to be operational by 2017.

EDF is currently the world’s biggest operator of nuclear power stations. It’s acquisition of British Energy was at the time criticised by MPs and action groups. EDF is 85% owned by the French government and many were concerned that the U.K. was unnecessarily passing on control of one of the country’s main assets, and threatening energy supply security.

Guest Article by Neil Camp