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British Gas parent Centrica added fuel to the flames over record price hikes after announcing a £144.6 million dividend payout for its shareholders.
The 16% jump in the dividend came as the group posted better than expected half-year profits of £992 million - a day after hitting millions of customers with a record 35% jump in gas bills.
Chief executive Sam Laidlaw defended the dividend as a "purely mechanical" payout based on the company's strong performance during the previous year.
But the move comes as the average dual fuel customer's annual bills have gone up more than £400 to £1,317 since the start of the year, and sparked anger from consumer watchdogs.
Energywatch campaigns director Adam Scorer said households would be "staggered" at Centrica's profits, adding: "Customers will be outraged to learn that while they ponder how to make ends meet Centrica's shareholders are enjoying an increase in their dividends."
Centrica is paying a dividend of 3.9p a share on more than 3.7 billion shares in issue - 30% of last year's payout after its £1.95 billion profits in 2007. Mr Laidlaw said the group had to reflect shareholder interests as well as customers.
"This is a business that has got a million shareholders - a lot of pension funds and people have got their savings invested in British Gas shares and we have to look after them," he said.
The group's £992 million profits are 19% below last year after the group felt the impact of rising wholesale costs at British Gas, where profits fell 69% to £166 million.
The UK's biggest domestic energy supplier, which has 15.9 million customers, has also lifted electricity prices 9% alongide its mammoth rise in gas bills.
The group said the price increases were necessary to restore "reasonable profitability" to British Gas and invest in additional gas and power assets.
Chief executive Sam Laidlaw defended the dividend as a "purely mechanical" payout based on the company's strong performance during the previous year.
But the move comes as the average dual fuel customer's annual bills have gone up more than £400 to £1,317 since the start of the year, and sparked anger from consumer watchdogs.
Energywatch campaigns director Adam Scorer said households would be "staggered" at Centrica's profits, adding: "Customers will be outraged to learn that while they ponder how to make ends meet Centrica's shareholders are enjoying an increase in their dividends."
Centrica is paying a dividend of 3.9p a share on more than 3.7 billion shares in issue - 30% of last year's payout after its £1.95 billion profits in 2007. Mr Laidlaw said the group had to reflect shareholder interests as well as customers.
"This is a business that has got a million shareholders - a lot of pension funds and people have got their savings invested in British Gas shares and we have to look after them," he said.
The group's £992 million profits are 19% below last year after the group felt the impact of rising wholesale costs at British Gas, where profits fell 69% to £166 million.
The UK's biggest domestic energy supplier, which has 15.9 million customers, has also lifted electricity prices 9% alongide its mammoth rise in gas bills.
The group said the price increases were necessary to restore "reasonable profitability" to British Gas and invest in additional gas and power assets.
