Npower and British Gas raise energy prices

 

Richard Lloyd of Which? talks about his "shock and disbelief" at the price rises

Related Stories

Npower has joined rival British Gas in announcing it is increasing gas and electricity prices in the UK.

Npower will increase the price of gas by an average of 8.8% and electricity by 9.1% from 26 November.

Earlier, British Gas, the UK's biggest energy supplier, raised its charges for both types of fuel by an average of 6%, adding £80 a year to the average dual fuel bill.

The firms both blamed the government's policies as well as wholesale prices.

SSE - which trades as Scottish Hydro, Swalec and Southern Electric - has already said it will raise its prices by an average of 9% from Monday.

"There is never a good time to increase energy bills, particularly when so many people are working hard to make ends meet," Npower's chief commercial officer Paul Massara said.

"But the costs of new statutory schemes, increases in distribution charges and the price of gas for the coming winter are all being driven up by external factors, for example government policy."

British Gas recognised that its increase, which will take effect from 16 November, would be "unwelcome".

It also warned that the rising cost of government energy policies, including boosting renewable energy, improving households' energy efficiency and helping the poorest customers, was likely to add even more to household bills next year.

The cost of government policies and the national grid upgrade added £50 to the average household bill this year, and is expected to add another £60 next year, British Gas said.

Rising costs

Case study

British Gas customers Heather and Gabriel Manzolini are a retired couple from Romford.

We're already paying £1,750 for council tax while our home fuel bill is nearly £1,200 a year and now it's just going to go up.

We only renewed our contract with British Gas two weeks ago so we're not happy at all.

We've tried to make our house as energy efficient as possible - there's nothing more we can do.

We need heat. I am recovering from cancer [and] my husband Gabriel had a stroke.

Gabriel was given a heating allowance aged 60 when he didn't need it; he was ashamed as he was in a full-time job. But now when we need it, it has halved - everything goes up day-by-day while our pension goes down.

We'll have to cut back on everything and turn the heating down as low as possible. We'll have to wear a lot of wool, too, and cut down on our other costs - such as spending on food.

Speaking to the BBC, Richard Lloyd of consumer group Which? criticised the lack of competition in the energy market.

"What we need to see is action from the government and more pressure on... these very big lazy companies who think it's OK to clobber people with above-inflation price rises at the very time when they can least afford it," he said.

Watchdog Consumer Focus said two price rises in one day would add to householders' worries that they were not getting a fair deal.

"Unless they can be reassured about the relationship between costs, prices and profits, consumer distrust will continue," said Consumer Focus director Audrey Gallacher.

British Gas managing director Phil Bentley claimed that 85% of the price it charged to customers was outside its control.

"Britain's North Sea gas supplies are running out and British Gas has to pay the going rate for gas in a competitive global marketplace," said Mr Bentley.

"Furthermore, the investment needed to maintain and upgrade the national grid to deliver energy to our customers' homes, and the costs of the government's policies for a clean, energy-efficient Britain, are all going up."

It said that winter wholesale prices it pays were proving to be some 13% higher this year.

Speaking to the BBC, Mr Bentley pointed out that although wholesale prices are actually currently lower than a year ago, British Gas, like most utilities, fixes the price at which it buys gas well in advance, and these fixed prices had risen.

The company reported £345m profit in the first half of the year, but the chief executive said that he expected profits to be down in the second half.

"Our margins are 5p in the pound," he told the BBC. "That 5p is going into jobs for Britain, investments in new wind farms, investments in new gasfields."

Graph showing the typical electricity bill over time
Insulation

Despite rising prices, the number of people switching suppliers is falling, which consumer groups suggest is more evidence of lack of trust in the market.

"The recent price increases mean it is more important than ever that consumers are able to shop around for the best deal," said regulator Ofgem.

"Next week we will be announcing the next steps in introducing major reforms to make the household energy market simpler, clearer and fairer for customers," it said.

Consumer Focus said that the government and the energy regulator should do more to protect households from the effect of growing energy costs.

Graph showing typical gas bill over time

"From next year, an average of £4bn will be taken from consumer bills in the form of carbon taxes," Audrey Gallacher said.

"Using a proportion of that revenue to fund a much more ambitious energy efficiency programme could start to tackle fuel poverty and provide a jump start to our energy efficiency industry."

All the energy utility firms are obliged under the government's "Certified Emissions Reduction Target" (or "Cert") programme to cut the carbon dioxide output by households.

British Gas extended its offer of free loft and wall cavity insulation to non-customers earlier this year. Consumer groups suggested the company had done this because it risked missing targets.

British Gas claimed that customers that had already implemented energy saving measures had seen their fuel consumption drop by up to 40%, and as a result the average total fuel bills of its customers had not risen faster than inflation, despite the increases in fuel charge rates.

In addition, under the government's Warm Home Discount Scheme which began last year, energy suppliers agreed to give discounts on energy bills to older households who receive certain benefits.

Speaking to the BBC, energy minister Greg Barker said the scheme would mean two million of the poorest families would get £130 towards energy bills.

Labour said it would introduce a new energy regulator with powers to force energy companies to pass on savings to consumers and automatically put over-75s on the cheapest deal.

Energy price changes since Nov 2010

Scottish Power SSE British Gas Npower E.On EDF

G=Gas. E=Electricity.

Nov 2010

G:2% E:8.9%

Dec

G:9.4%

G:7% E:7%

Jan 2011

G: 5.1% E: 5.1%

Feb

G:3% E:9%

Mar

G:6.5% E:7.5%

Aug

G:19% E:10%

G:18% E:16%

Sept

G:18% E:11%

G:18% E:11%

Oct

G:15.7% E:7.2%

Nov

G:15.4% E:4.5%

Jan 2012

E: -5%

Feb

G: -5%

G: -5%

E: -6%

G:-5%

Mar

G:-4.5%

Oct

G: 9% E:9%

Nov

G:6% E:6%

G:8.8% E:9.1%

 

More on This Story

Related Stories

The BBC is not responsible for the content of external Internet sites

Comments

This entry is now closed for comments

Jump to comments pagination
 
  • rate this
    0

    Comment number 836.

    @176 ... Buy a wood burning stove? Have you seen the price of those things and what of people living in 'smoke free' zones? Time to take off those rose tinted glasses and enter the world of monopolies, under investment, squandered natural resources and a woefully inadequate national 'power framework'.

  • rate this
    0

    Comment number 835.

    Maybe if the Bank of England stopped printing money (one effect of which is to bolster asset prices) gas and electricity wouldn't be so expensive.

  • rate this
    +1

    Comment number 834.

    British gas makes massive profit increases and passes not one penny on to consumers, what's the betting the shareholders get it. Oh and of course the directors.

    These power companies are an utter disgrace, they do this year in year out using exactly the same excuses, and the soppy british consumers just take it.
    One day they'll get their just deserts, but I bet I'm not alive to see it.

  • rate this
    0

    Comment number 833.

    Why only in winter when people use it most wholesale prices and govt policies prevail all year ,its a combined act of making money by all energy companies,these companies profits always rise after winter quarter due to price rise

  • rate this
    0

    Comment number 832.

    People waste resources, then moan about the cost. For eg, I feel a bit nippy at the moment. The heating is not on, but equally I'm not wearing a fleece or a jumper when I should be. And I did get off my backside and change energy companies (when warned to) 1 month ago. As a result I have a good deal (no longer available) which is fixed until April 2014 (with prices lower than I was paying before!)

  • rate this
    +3

    Comment number 831.

    In 1980s, privatisation gave us a good cheap 'deal' on the basis of controlling union power.

    Then the big companies carefully worked to ensure their monopoly for 30 years without investing.

    Now that their 'cartel' is established, they do what they want.

    Sound familar ? Energy companies, banks, supermarkets ....

    Sometimes it's better to pay a bit more to the small people.
    Too late now.

  • rate this
    +1

    Comment number 830.

    Sleeping bag times are almost upon us,I hope its not a bad winter then...
    People do live like that in winter.Them win win us lose lose.Same old outcome.Robbed...

  • rate this
    -2

    Comment number 829.

    The public versus private debate is just a minor distraction in the overall scheme of things and is solely based on political ideology.

    Whether you think the consumer should pay (private) or the taxpayer (public) the unpalatable truth is that natural energy resources are finite and the cost of providing them are guaranteed to increase over time.

  • rate this
    0

    Comment number 828.

    Rip off & doing it right now is devastating news for everyone. They spring it on you right now winter is coming. Like they did last year!
    I will get my warm sock and slippers and comphy blanket and to hell with heating I will get a hot water bottle. I have no choice. We all going to suffer. I tried to change my suppliers but I was refused. So I'm stuck with ---.

  • rate this
    +1

    Comment number 827.

    People want their own homes, 2.5 kids, 2 Cars, foreign holidays,SAT TV, Cable, Big TV's, XBox's, Computers, Laptops, Smartphones, etc.. etc..
    So big business brought you it all, and available on the never.. never..

    Just like the country to much expenditure,
    To little income to pay the bills!

    Now where are your priorities?, Tough choices to make?
    Cut something to pay for Gas/Electricity?

  • rate this
    0

    Comment number 826.

    Following on from 821.
    Thats the reason we will never get a vote on the EU because of all the land subsidies paid the big estate owners.
    They dont want to loose it.
    Last Govt also passed an act of parliment agaist Climate change.
    Must think they were King Canute
    And we pay & pay & pay
    Blunder of the century
    Time for another U turn

  • rate this
    0

    Comment number 825.

    305.peggy
    downsize, I did and my fuel bills are £45 per month in total and in the winter I have the heating on 24/7 small is beautiful when paying the bill and I keep my home at 74F

  • rate this
    0

    Comment number 824.

    So its a combination of energy companies greed for even more profit during economic difficulty, and the government putting development of cleaner energy onto the general public with a stealth tax.

    A responsible government would ban energy increases at this time, close all tax loopholes for the richest (then there would be plenty for clean energy) and raise winter fuel allowance for the elderly

  • rate this
    +1

    Comment number 823.

    .

    OK This is what happens when you print money

    ....................DEVALUATION = PRICE INCREASES .......................

  • rate this
    +2

    Comment number 822.

    Many bloggers here miss the point.
    This is a direct result of Parliamentary energy policy signed off by David Miliband during the last Government and endorsed by David Cameron.
    If you want renewable energy as policy, then your bills will DOUBLE again by 2020.
    Norway would love to sell us more gas but they can't because of Government energy policy so prices go up!

  • rate this
    +3

    Comment number 821.

    Was on the TV that the Govt gets the thick end of 25%
    They are not letting go of that are they !
    Big companies & govt are ALL in it together playing along like a pantomine act & we the public have to pay a high price for the seats
    The cost of wind turbines etc is extortionate
    http://www.guardian.co.uk/environment/2012/feb/28/windfarms-risk-free-millions-for-landowners

  • rate this
    +3

    Comment number 820.

    why are people so surprised this is happening...?
    we have allowed the governments to sell the everything down to the kitchen sink to the private sector, and now we are paying the costs.
    ITS TIME FOR THE PEOPLE TO STAND UP AND STOP BEING SHEEP !!

  • rate this
    +3

    Comment number 819.

    802.J Workerbee
    34 Minutes ago
    Wonder if Mr Cameron's kids will wake up to a freezing cold house this winter ?
    =====
    No, they will be nice and warm in the pub.
    ~~~~~~~~~
    800.creepy2
    35 Minutes ago
    wake up people the elite need to kill us off they will do what ever it takes
    ====
    Why?, don't be silly, they need us for fodder and money.!

  • rate this
    -1

    Comment number 818.

    Energy will continue to get more expensive as global demand rises and the UK falls further back in the pecking order. Had we invested properly in nuclear years ago we wouldn't be in so bad a fix now. But no, we listened to all that guff about renewables, which cannot produce a fraction of our energy needs. Its self inflicted. Tough.

  • rate this
    +1

    Comment number 817.

    Bristish Gas is always the first to raise prices. The great Con master always lead. See the others follow soon. It's all a game. They make you feel that it is justifiable to raise prices. Is it not the reasons why our Nation is spending our Tax money in fighting wars and occupying other countries and enslaving them? so we can have cheap commodities like fuel and Gas? We are conned both ways.

 

Page 1 of 42

 

More Business stories

RSS

BBC Business Live

  1.  
    CO-OP GROUP 12:20:
    A Co-operative Bank sign on April 11, 2014 in London

    "Not only did the Co-op have to put more money into the bank to do the right thing but we also had to write off [part] of our investment," says Co-op chief executive Richard Pennycook, in an interview with the BBC's Business Editor Kamal Ahmed. He's explaining the magnitude of Co-op's loss today. "What we found is a period of poor performance by management," particularly over the last five years, he said.

     
  2.  
    RBS REPORT 12:12:
    rbs

    You might remember that late last year a report by government adviser Lawrence Tomlinson claimed RBS put some "good and viable" businesses into default for profit. RBS asked city law firm Clifford Chance to look into the allegations. The results have been released and it "found no evidence that RBS systematically set out to defraud its business customers".

     
  3.  
    DUBAI FLIGHTS 12:04:
    Emirates airline

    A major refurbishment of two runways at Dubai International Airport will ground flights to 41 destinations for Emirates airline. The work begins on 1 May and is due to last 80 days. As result the airline is grounding 20 aircraft in May, 22 in June and 22 in July.

     
  4.  
    CO-OP GROUP 11:54: Dominic Laurie Reporter for Five Live

    clarifies those 650 "empty" Co-op properties: "Richard Pennycook tells me on the Coop call just now that a third were empty - and two thirds were rented out to someone else. But often the income they get from the tenants are below the rents the Coop itself has to pay. There is also a big cost of having a team scurrying around the country making sure they are rented out, kept in good nick etc."

     
  5.  
    Via Twitter Rory Cellan-Jones Technology correspondent

    tweets: "A bug is affecting iOS apps for both Sky's Now TV and BBC iPlayer. We're investigating..."

     
  6.  
    GENERAL ELECTRIC 11:44:
    GE

    General Electric, one of the most closely followed US companies, has reported first quarter net earnings of $3bn down 15% on the same quarter last year. That included some one-off items. The company said its industrial unit saw sales grow 8%. GE is seen as a barometer of US industrial health.

     
  7.  
    DISNEY PAY 11:24:
    Disney Christmas Day Parade

    Bloomberg is reporting that Walt Disney has offered to raise pay for new staff at its Florida theme parks by 25% over two years. That would take pay to $10 an hour. That would almost match the minimum wage that the White House has proposed for federal workers.

     
  8.  
    ZTE PROFITS 11:12:
    Mobile World Congress

    ZTE, a giant Chinese firm which makes mobile phones and equipment for the telecoms industry, has reported a 200% increase in first quarter net profit. It made 622m yuan ($100m; £60m). ZTE is benefitting from China's rollout of new high-speed mobile phone networks.

     
  9.  
    MARKET UPDATE 11:01:

    The benchmark FTSE 100 index is down 0.2%, with Diageo down 4.3% following lower sales in the third quarter. RSA Insurance Group is up 2.9% after selling businesses in Poland and Baltic states. Germany's Dax is down 0.2% and France's Cac 40 fell 0.2%.

     
  10.  
    CO-OP GROUP 10:49:

    The company has about 650 properties, mainly old shops, that it doesn't use, said Mr Pennycook. That is the size of a national retail network, he said, and the board was "surprised" when he told them.

     
  11.  
    CO-OP GROUP 10:37:
    A branch of the Co-operative Bank on April 11, 2014 in London, England

    "I've said I will lead the organisation through a period where we need to steady things, which includes governance reform," said Mr Pennycook. Journalists are asking whether he will stay if reform isn't forthcoming. He won't "name names" when it comes to the bank's failures as there is an official report in the pipeline, he said.

     
  12.  
    CO-OP GROUP 10:21:
    A pedestrian passes a Co-operative retail store in east London, April 10, 2014.

    More from Mr Pennycook on the Co-op's results. They will open 100 new convenience stores this year, he said. It is an area Co-op does well, he said. They will sell their farms and pharmacy businesses and expect a "conclusion" on that process towards the end of the year. Being "all things to all people" means they have been "too thinly spread."

     
  13.  
    CO-OP GROUP 10:13:

    Co-op Group interim chief executive Richard Pennycook is speaking on a conference call. He says the company will cut about 60% of the stores Somerfield brought with it when it bought it in 2008. They are too large and don't "work for" the firm, he said.

     
  14.  
    TAYLOR WIMPEY 10:04:
    03/07/2008 new Taylor Wimpey home

    Homebuilder Taylor Wimpey's chief executive Pete Redfern says the firm "made a particularly strong start to the year." It expects to improve operating margin, a profitability measure, by 2-3 percentage points in 2014, it said. Sales for the year will be "slightly ahead" of 2013.

     
  15.  
    CO-OP GROUP 09:47: Kamal Ahmed BBC Business editor

    "The Co-op Group chief executive has laid it on the line - this business needs to reform or it will face dire consequences. His words about "management failings" and these results being "disastrous" and the "worst in our 150 year history" are a clear message to anyone who thought that the business could carry on in the same way."

     
  16.  
    HIGH-FREQUENCY TRADING 09:42:
    Trader

    The Financial Times reports that New York's attorney general has sent subpoenas to six high-frequency trading firms. A subpoena is an official request for a person to testify, or an organisation to provide information. In this case it's a development of the investigation into high-frequency trading. Such firms are suspected of having an unfair trading advantage.

     
  17.  
    LIFE EXPECTANCY 09:28: BBC Radio 4

    People about to retire and deciding what to do with their pension will be given guidance as to when they're likely to die, under a proposal being floated by the pensions minister, Steve Webb. Most people underestimate their life expectancy by around 3 years. So says Tom McPhail of Hargreaves Lansdowne, on Today.

     
  18.  
    CO-OP GROUP 09:18: BBC News Channel
    Kamal Ahmed, Business Editor

    BBC Business Editor Kamal Ahmed says that stinging comments from Co-op Group boss, Richard Pennycook shows he is trying to get momentum behind the reform agenda. Kamal says the results have a small amount of better news - debts have come down slightly and funds will be generated by the sale of pharmacies and farms.

     
  19.  
    CO-OP GROUP 09:13:
    File photo dated 16/07/13 of a Co-operative food store

    Most of Co-op Group's loss related to the bank. It booked a loss of £1.44bn up to the date it lost control of the bank, and then took another charge of £625m when it handed over 70% of the bank's shares to bond investors. The company also wrote down the value of Somerfield by £226m.

     
  20.  
    CO-OP GROUP 09:03: Breaking News

    The Co-operative group has announced a loss of £2.5bn for the year to 4 January. "The scale of this disaster will rightly shock our members, our customers and our colleagues," says chief executive, Richard Pennycook.

     
  21.  
    PETROBRAS PROBE 08:53:
    Petrobras HQ, Rio

    Brazilian police named 46 suspects including an executive at oil company Petrobras in an alleged $4.5bn money laundering and drug operation, according to AFP. Authorities are investigating a gang for illegal currency trading, diamond trafficking and bribing government officials along with money laundering and drug allegations. Two of the suspects are on the run, said AFP, citing local media.

     
  22.  
    MARKET UPDATE 08:42:

    Shares in London have drifted lower in early trading. The FTSE 100 is down 0.2%, with Diageo the biggest loser after it reported a fall in sales in the third quarter. Shares in RSA Insurance have jumped almost 3% after announcing the sale of businesses in the Baltic states. In Frankfurt the Dax is down 0.2% and the Cac 40, is little changed.

     
  23.  
    BEER 08:29: Radio 5 live

    Colin Valentine of Campaign for Real Ale is on 5 live telling us beer is just as good for us as wine. There is some science behind his claim, he says. Alas, it is only healthy in moderation, according to Mr Valentine. "When people talk about beer bellies it's not just the beer we are talking about," he said.

     
  24.  
    SPIRITS TUMBLE 08:21:
    Diageo Claive Vidiz Collection

    It's a rough morning for shares in the makers of some of the world's best-known spirits. Diageo, the owner of Johnnie Walker, is down 3.8% and Remy Cointreau is down 6.2%. Remy warned that annual operating profits could be down as much as 40%. Diageo reported that sales in the three months to the end of March fell 1.3%.

     
  25.  
    NEW CAR SALES 08:02:
    New cars, Sheerness Kent

    Demand for new cars in the European Union increased for the seventh month in a row in March, according to the European Automobile Manufacturers Association. It says car registrations rose 10.6% last month. The UK was the strongest of the major markets with a 17.7% rise, Italy was the weakest with a 5% increase.

     
  26.  
    HEADLINES
     
  27.  
    FRANCE DEFICIT 07:48:

    France will slightly slow the pace of its deficit reduction, according to the French Finance Minister, Michael Sapin. In an interview on RTL radio he said that the move had been discussed with European partners. Last week new French Prime Minister Manuel Valls vowed to cut both taxes and spending in a bid to make the French economy more competitive.

     
  28.  
    GOOGLE 07:37: BBC Radio 4
    Google logo

    Google's core business is getting a little "dodgy" according Larry Magid, technology analyst for the website C-Net on Today. They are not getting the revenue on phones that they are on the web, he says. "Some of the crazy ideas have got to get a little less crazy and more profitable," he says, referring to new businesses like robotics and drones.

     
  29.  
    DIAGEO 07:26:
    whisky

    The maker of Johnnie Walker whisky Diageo said sales in the three months to the end of March dipped 1.3%, led by a 19% drop in Asia because of political instability in Thailand and weaker China demand. India, where the firm is trying to buy United Spirits, delivered sales growth of at least 10% it said.

     
  30.  
    REMY COINTREAU 07:18:
    glass of scotch

    A cut in ostentatious spending by Chinese officials will hit profit for Remy Cointreau, the French distiller said. Full-year operating profit will fall as much as 40%, as sales in cognac fell 32% in the fourth quarter. The maker of Remy Martin cognac, Cointreau liqueur and Mount Gay Rum said sales for the three months to the end of March fell 16% to 186 million euros (£153m)

     
  31.  
    MULBERRY 07:14:
    Mulberry bags

    Handbag maker, Mulberry is introducing a "more affordable product" as it attempts to reinvigorate sales. It has also warned that pre-tax profit for the year to 31 March will be "marginally" below current expectations. The firm is looking for a new chief executive after the departure of Bruno Guillon last month.

     
  32.  
    CURRY 07:07:
    lamb curry

    A third of lamb curries tested by the Foods Standards Agency were found to contain cheaper meat. While no horsemeat was found in the watchdog's 145 samples, 25 were found to be just beef with no lamb.

     
  33.  
    CHINA WOMEN 07:02: BBC Radio 4

    In China there is an official phrase "left over women". It refers to single, urban women over the age of 27. On Today Leta Hong Fincher from Tsinghua University, says that Chinese state media has been insulting these women with the phrase and pressuring them into finding a husband and settling down.

     
  34.  
    HORSE RACING 06:48: BBC Radio 4
    Future Champion Novices" Steeple Chase

    40% of the population will watch some kind of horse racing during the year, claims Simon Bazalgette, chief executive of the Jockey Club on the Today Programme. That's why sponsors from the Middle East and big companies are keen to get involved in the sport, he says.

     
  35.  
    CO-OP GROUP 06:35: BBC Radio 4

    "Turkeys" and "angry birds" is how Michael Mol, professor of strategic management at Warwick Business School refers to senior managers at Co-operative Group on Today. He is "very worried" about their ability to take the right decisions. He thinks Co-op Group will have to find money to invest in the struggling Co-op Bank, despite only now owning 30% of the lender.

     
  36.  
    EASTER EGGS 06:25: Radio 5 live

    Are the walls of chocolate Easter eggs getting thinner? Yes, says Lee McCoy, editor of Chocolate Reviews, on 5 live. More shocking, there may be a shortage of the Easter treats. It seems Tesco have run out of a number of lines, especially eggs made by Cadbury and Nestle, as well as some Lindt and Mars eggs, the Daily Telegraph reports.

     
  37.  
    FOOTBALL 06:13: Radio 5 live
    Danny Mills, Robbie Savage, 2004

    More from Danny Mills. He's invested in a pasty company through private equity, but would he invest in football? Five-year contracts for staff (footballers) and the highest sporting wages in the world mean it's a game for "billionaires" he said. "You can't blame the footballers," he said, as anyone would take the money offered. Picture above shows Danny in his playing days, exchanging views with fellow BBC pundit Robbie Savage.

     
  38.  
    PASTIES 06:06: Radio 5 live
    Pasties

    Former England and Leeds footballer Danny Mills is part of an investment group that has bought West Cornwall Pasty Company from administrators. He tells 5 live: "There's a gap where banks just aren't lending," he said. The original company's strategy was "too aggressive" and expanded too quickly, which led to its demise. He blamed the pasty tax for the rising price of pasties.

     
  39.  
    CO-OP GROUP 06:01: Radio 5 live

    Michael Mol, professor of strategic management at Warwick Business School is on 5 live talking about Co-operative Group, which releases earnings today. "You have two different issues: the bank issue with huge losses," he said and "the group facing losses from the Somerfield acquisition". More losses could be on the way if they don't reform their governance structure, he said. They also have too many lay members who "don't know how to run a business," he said.

     
  40.  
    GOOGLE 06:00:
    Google building

    Google is likely to be under scrutiny today after it released results late on Wednesday that some considered disappointing. Google still made $3.45bn (£2.05bn) in its first quarter. But some are expressing concern about a surge in costs. That reflects Google's move into new businesses, including robotics and drones.

     
  41.  
    06:00: Howard Mustoe, Business Reporter

    Hello from me. Keep in touch via @BBCBusiness and bizlivepage@bbc.co.uk.

     
  42.  
    06:00: Ben Morris Business Reporter

    Good morning! Watch out for results from Co-operative Group due at 09:00. You can expect Google to be in focus today as well, releasing results which some investors consider disappointing.

     

Features

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.