The BBC reports the profits at British Gas’ residential arm have leapt from £95m in 2006 to £571m for last year. How have they managed such a dramatic increase? Well, the rising price of wholesale gas linked in the publics price increases seen at the petrol pumps. This has led consumers to expect price rises allowing British Gas to increase significantly its margins and obviously profits. For householders there is no way out, British Gas’ competitors seem to be operating a cartel; they are all increasing prices above what the wholesale market justifies. Expect announcement of more hefty profit increases in the sector.