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As temperatures plunge across the United Kingdom in early 2026, British Gas has sounded the alarm for thousands of households facing potential heating crises. With an Arctic blast bringing sub-zero conditions, the energy giant is warning that up to 54,000 homes could experience issues with frozen pipes, leaving many without essential heating or hot water.
This comes amid a week of brutal weather, with forecasts predicting temperatures as low as -20°C in some areas, exacerbating risks to plumbing systems. British Gas, the UK’s largest energy supplier, is urging customers to take immediate action—such as insulating pipes and checking boilers—to avoid breakdowns during this deep freeze.
The warning highlights broader concerns about the nation’s gas supply, which has dipped to “concerningly low” levels amid the cold snap. As demand surges for heating, experts fear reserves could deplete in days if the freeze persists. British Gas, part of Centrica plc, is mobilizing engineers to handle the expected influx of calls, emphasizing preventive measures like letting taps drip and keeping thermostats at a minimum of 10°C when away from home.
A Brief History of British Gas: From Humble Beginnings to Energy Powerhouse
British Gas traces its roots back over two centuries to the early days of the industrial revolution. Founded in 1812 by Frederick Albert Winsor as the Gas Light and Coke Company—the world’s first public utility—it was incorporated by royal charter under King George III. This pioneering company illuminated London’s streets with gas lamps, marking the birth of the UK’s gas industry amid the Napoleonic Wars.
Over the years, it evolved into the state-owned British Gas Corporation before being privatized in 1986 under Margaret Thatcher’s government, when shares were floated to the public. Today, as a subsidiary of Centrica, British Gas continues to dominate the energy market, blending its historic legacy with modern services.
Customer Base: Serving Millions Across the Nation
Despite recent competition, British Gas remains a cornerstone of UK energy supply, serving around 10 million homes and over half a million businesses. However, in 2025, it was overtaken by Octopus Energy as the country’s largest supplier, with British Gas reporting approximately 7.5 million residential energy customers in prior years.
This vast customer base underscores the company’s role in national energy security, especially during extreme weather events like the current Arctic blast.
Financial Snapshot: Centrica’s Balance Sheet in 2025
As the parent company of British Gas, Centrica plc’s financial health provides insight into the operations behind the warning.
Based on the interim results for the period ended 30 June 2025, the Group Balance Sheet shows a robust position despite market volatility:
- Non-current assets: £4,139 million
- Current assets: £11,845 million
- Total assets: £16,209 million
- Current liabilities: (£7,442 million)
- Non-current liabilities: (£5,082 million)
- Total liabilities: (£12,524 million)
- Net assets: £3,685 million
- Share capital: £330 million
- Retained earnings: £3,243 million
- Total equity: £3,685 million
This reflects a strong balance sheet with adjusted net cash of £2.5 billion, though down from £2.9 billion at the end of 2024, amid investments in energy infrastructure.
For the full year 2024 (most recent annual available), total assets stood at £18.733 billion, with total liabilities at £13.921 billion and total equity at £4.812 billion.
Typical British Household Energy Bills: Monthly and Yearly Breakdown
With energy costs a hot topic during cold spells, here’s a look at average bills for typical UK households in 2025, based on Ofgem’s medium usage figures for dual-fuel (gas and electricity) tariffs paid by direct debit.
These vary by house size and consumption:
| Household Type | Average Monthly Bill | Average Yearly Bill |
|---|---|---|
| 1-2 Bedroom Flat (Low Usage) | £108 | £1,301 |
| 3-4 Bedroom House (Medium Usage) | £146 | £1,755 |
| 5+ Bedroom House (High Usage) | £180 | £2,160 |
These figures are approximates drawn from industry averages, with dual-fuel costs around £1,720-£1,755 annually for a typical medium household. Electricity alone averages £711-£882 yearly, while gas contributes the rest.
Bills can fluctuate with price caps and usage, so checking your tariff is key—especially now.As the Arctic blast continues, British Gas’s warning serves as a reminder of the vulnerabilities in our energy systems. Stay warm, stay informed, and consider energy-saving tips to keep costs down this winter.
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