(MENAFN- ProactiveInvestors) British gas owner () has issued a profit warning after unseasonably warm weather meant UK households kept their heating off.
Average gas consumption for the first ten months of 2014 was 21% lower than for the same period last year the firm said in a trading update.
Meanwhile it expects the average British Gas residential duel fuel bill (gas & electric) to be £100 lower than last year mainly due to mild weather in the second half.
The firm cut its earnings per share target to 19-20p down from 21-22p and also cautioned its upstream business would be hit if oil and gas prices remain low.
Trading conditions for British Gas Services as well as the impact of boiler inspections at the Heysham 1 and Hartlepool nuclear power stations would also hurt profits.
Residential users have fallen by 50000 since the end of June to stand at just over 15mln. The company was more upbeat on next year and forecast earnings growth in 2015.
The business and its rivals have been under political pressure to cut prices following an increase in energy bills in recent years.
The Competition Commission has launched an inquiry into the energy supply sector following a referral by energy regulator Ofgem which said parts of the sector are not competitive enough.
Shares fell 4p to 295p.
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