Centrica PLC says electricity demand and boiler installation dropped in latest

() said trading is continuing to be difficult with the impact of the COVID-19 lockdown and its dispute with engineers affecting boiler installations.

Chris O’Shea, the British Gas owner’s chief executive said: “As expected, trading conditions have remained tough in the year to date.”

O’Shea added that the modernisation of the group remains on track with a dispute with engineers about new contracts now completed.

That dispute saw hundreds of engineers fired last month after they refused to accept the new terms and conditions, though 98% had accepted, O’Shea said.

Residential boiler installations fell by 11% in the three months to end-March, 2021, which O’Shea attributed to non-essential and servicing visits being cancelled due to COVID-19 restrictions.

Electricity demand from business customers dropped by 15% during the quarter, though Centrica said due to the restructuring it expects overall cost savings of more than £100mln this year.

Net debt has fallen to £0.5bn from £3bn following receipt of net proceeds from the sale of Direct Energy. 

O’Shea added that given the ongoing uncertain outlook it is still not providing any specific group earnings or cash flow guidance for 2021.

“Although the external environment remains uncertain, our tight focus on cash and on fixing the basics across the group leaves us well placed as we continue the turnaround of our company,” he added.