British Gas - Comprehensive Analysis Report

Summary

British Gas is a UK-based energy and home services provider with over 200 years of history, tracing back to 1812. It operates as a trading name of several Centrica subsidiaries. While overtaken by Octopus Energy in electricity supply in 2024, British Gas remains the largest gas supplier in the UK and the second-largest electricity supplier as of June 2025. The company services millions of boilers annually and supports vulnerable communities with heating solutions during winter.

Its mission is to make homes more sustainable, easier to manage, greener, and more affordable. British Gas provides gas and electricity supply, boiler and heating services, home energy solutions, smart home technology, and plumbing and drains services. The company employs expert engineers and is committed to supporting communities and helping them use energy more efficiently.

1. Strategic Focus & Objectives

Core Objectives

Delivering a reliable energy supply and supporting businesses in their energy transition.

Reducing carbon footprint and optimizing energy consumption for customers.

Providing services to keep homes running smoothly.

Offering sustainable solutions such as energy-efficient boilers, heat pumps, and EV chargers.

The company aims to achieve a net-zero business by 2045, with a 40% reduction in greenhouse gas emissions by the end of 2034.

Specialization Areas

Energy supply (gas and electricity).

Boiler and heating services.

Home energy solutions.

Smart home technology.

Plumbing and drains services.

Target Markets

Residential customers in the UK.

Businesses requiring energy supply and energy transition support.

Vulnerable communities needing heating assistance.

2. Financial Overview

Funding History

In 2023, British Gas Energy saw profits increase significantly from £72 million to £751 million. This increase was attributed to the regulator Ofgem raising the energy price cap, allowing the company to recoup some of the costs incurred during the energy crisis. Centrica's overall operating profit for 2023 was £2.8 billion. In February 2025, Centrica reported adjusted earnings of £2.3 billion for the previous year. The company has outlined plans to repurchase £1 billion of shares and proposed a final dividend of 2.7p per share, resulting in a full-year payout of 4p per share.

3. Product Pipeline

Key Products/Services

EV Charger Installation and Management: Services for installing, managing, and supporting EV chargers.

Heat Pump Installation and Management: Services for installing, managing, and supporting heat pumps.

Smart Home Technology: Installation, management, and support of smart home technologies.

4. Technology & Innovation

Technology Stack

Smart Technology: Harnessing smart technology to help customers save energy and lower bills.

Mobile App: A mobile app that allows customers to schedule their heating remotely.

Heating Apps: Trialling heating apps that use pattern recognition, room occupancy, weather, and a customer's location to control heating settings automatically.

Hive Ecosystem: A range of smart home products under the Hive brand, including thermostats, lights, and cameras.

Data Analytics: Using data to drive fact-based marketing decisions and improve customer experience.

Smart Meters: Installing smart meters to help customers monitor and manage their energy usage.

Proprietary Technologies:

Hive Active Heating: A smart thermostat that allows customers to control their heating and hot water remotely.

Energy360® DataView: A free platform that allows business customers to view, download, and track their energy consumption data.

5. Leadership & Management

Executive Team

JS · Jana Siber: CEO

Wayne Smith: Director of Operations.

Martin O'Neill: Customer Service Director.

Susan Wells: Director, Net Zero Fulfilment.

Amanda Bowe: Non-Executive Director and Chair of Risk Committee.

6. Competitive Analysis

Major Competitors

Octopus Energy

E.ON Next

OVO Energy

EDF Energy

Scottish Power

Uswitch.com

Homeserve.co.uk

Checkatrade.com

Boxt.co.uk

7. Market Analysis

Market Overview

A shift towards renewable energy sources.

Increasing energy price volatility.

Growing demand for electricity due to the adoption of electrification in sectors like heating and transport.

The need for a more dynamic and responsive energy system to balance supply, demand, and storage.

Market trends indicate a move towards cleaner energy, driven by the UK's commitment to achieving net-zero emissions by 2050.

8. Strategic Partnerships

Significant Partnerships

NIBE Energy Systems UK: A partnership to strengthen NIBE's service network and provide support for the heat pump market.

Navien: A partnership to deliver customer service, repair coverage, and warranty support across Navien's gas and oil boiler ranges and heat pumps.

Scottish FA and Scottish Rugby Union: Partnerships to create a more sustainable and inclusive future for Scottish sports.

Team GB and ParalympicsGB: A partnership to help people across Britain save energy.

9. Operational Insights

British Gas is focused on improving customer service and lowering bills. The company is also focused on expanding in the 'on demand' market by delivering more jobs to more customers and expects to continue to grow in this area in the coming years. The company aims to evolve into a service business that sells energy, rather than an energy business that sells services.