British Gas owner Centrica warns political uncertainty could hit investment

 
Joseph Millis
Political upheavals before and after the 7 May General Election may cause harm to BG
British Gas owner Centrica yesterday warned that the run-up to the 7 May election would have a knock-on effect on investment in the UK energy sector.

“The UK market faces potential pressure in both the run-up to the UK General Election and in the policy decisions taken by the next government,” Centrica said in its annual report.

The company added: “The current political debate has exacerbated significant uncertainty in the UK energy landscape. This could impact future power, storage and upstream investment and the attractiveness of the UK energy supply business.”

Centrica and other energy giants are facing political pressure to pass on cuts in energy prices to households.

Last month, Centrica was forced to defend a five per cent cut in prices for customers which British Gas described as fair.

It also cut its dividend for the first time in almost 20 years in a bid to preserve its credit rating.

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