In response to Ofgem's statement on wholesale and retail prices, Ian Peters, Managing Director of Residential Energy at British Gas said:
"We buy our gas well in advance, so movements in wholesale prices, up or down, do not feed through immediately to retail prices. We have other costs that are rising - regulated transport and distribution costs, environmental costs, metering costs. We are certainly not increasing profits on the back of lower wholesale gas prices - our trading statement last month downgraded profit expectations.
“The details of our hedging strategy are commercially sensitive. To disclose our hedging would risk tacit coordination which is not appropriate in a competitive market. So we will not comment on how we have reacted to specific events."
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