A loss of over a million customers has seen British Gas owner Centrica's profit go down by five per cent.
Releasing its preliminary results for 2006 to the stock exchange today, Centrica revealed that it lost 1,029,000 customers, with most choosing to go with competitors while shopping around for cheaper prices.
Centrica says that gas shortages in the middle of 2006 pushed up wholesale prices, which had to be passed on to customers.
However, the company has announced a plan to win back customers, cutting residential prices for gas by 17 per cent and electricity by 11 per cent from next month.
Despite the customer loss, Centrica managed to lift overall turnover by 22 per cent to £16.5 billion. Performance was improved by British Gas Business, which increased turnover by 53 per cent.
Operating profit was £1.4 billion, down five per cent from last year's figure.
Announcing the results, chief executive Sam Laidlaw said: "Financially the business performed well in a difficult year."
"While good progress is being made there is further work to be done to improve the British Gas service levels, reduce our cost base and develop our services, energy efficiency and international businesses."
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