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Energy giant Centrica announces report highlighting its economic benefits
Multinational utility company Centrica contributes £14.1bn to the UK economy according to a report by Oxford Economics.
Published ahead of the companies full-year results, which are expected to show a 15% rise to £2.77bn, Centrica are hoping the report will fend off public criticism over profits at a time of increasing gas prices and utility bills.
The report highlights that Centrica, which operates under Scottish and British Gas brands in the UK, supported 174,000 jobs and helped generated £4.2bn in tax receipts in 2012.
Centrica’s tax contribution was though calculated by totalling corporation tax, employees and employers national insurance contributions, PAYE, and indirect tax payments made by consumers.
Responding to the Oxford Economics’ report Richard Lloyd, executive director of consumer magazine Which?, stated though that “At a time when spiralling energy bills are consumers’ top financial worry, people are bound to question whether they’re paying a fair price for their energy when they see big profits announcements from the energy giants.
“Centrica’s analysis won’t change that view as record-high bills land on millions of doormats in the coming weeks”.
Commentating on the report Adrian Cooper, CEO of Oxford Economics, said that the “impact of Centrica’s activities is shown to extend well beyond its core function of delivering a secure energy supply to businesses and consumers across the country.
“Our research clearly demonstrates the significant contribution that a large and successful British company can make to the economy as a whole, especially the job market and the UK’s public finances.”
According to the report for £1 billion Centrica contributes to GDP itself, it generates another £2.9 billion in the rest of the UK economy through multiplier impacts and that the company spent £9.4bn on goods and services from over 6,000 businesses.
Welcoming the report’s finding Sam Laidlaw, Centrica’s Chief Executive, argued that the “This study shows how companies like Centrica are an engine for sustaining and stimulating growth.
“At a time of uncertain economic prospects, our activities across the UK are even more important to secure employment, put the supply chain to work and contribute our fair share of tax”.
