British Gas owner freezes staff pay to combat "significant" coronavirus impact

The owner of British Gas has announced that it has seen a “significant” impact from the loss of business energy demand.

Centrica, which owns the company, has put in place a pay freeze for staff as it attempts to cut costs by £400m to offset the loss.

The company said that it also expects losses from households, as some customers have deferred payments due to household incomes decreasing.

The company said: “It is unclear how long the current situation will last, how customer behaviour may change, the impact on the wider economy, and the extent to which government financial support for households and businesses may help mitigate some of the expected effects.”

Chris O’Shea, interim group chief executive at Centrica, added: “As the scale and length of the crisis unfolds, it is becoming increasingly clear what a vital role so many of the Centrica team perform to keep our communities warm, safe and supplied with energy.

“I am extremely proud and humbled by the response of colleagues, and on behalf of the board I would like to say how grateful we are to them.

“While there are so many uncertainties surrounding the impacts of this situation, I am confident that we have acted promptly and prudently to underpin the long term strength of Centrica.”

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