Scottish independence could impact results says Centrica
Energy giant Centrica has warned of the consequences of a yes vote in Scotland's independence referendum as well as political interference in the energy market.
The company made the comments in its annual financial report for the year to 20 February 2014.
In the event that Scotland became independent parts of Centrica's upstream assets would be subject to a new fiscal regime. The company said that "while the outcome and impact of this referendum remains uncertain, this could have impacts on our operational and financial results."
Centrica also highlighted the dangers of the politicisation of the energy market, with manifesto pledges that "do not translate well" into considered policy representing a possible threat to investor confidence and could raise the cost of capital.
The company said volatile global commodity markets and promises to cut carbon emissions continued to shape the UK energy market. However, acknowledged Centrica noted that that is it operating in an environment where the British public has become increasingly sceptical of major energy companies.
Chief executive, Sam Laidlaw, said:
Steps have been taken to improve transparency, increase simplification, reduce the cost of energy efficiency measures and lower bills. These are helping foster a more balanced debate about energy but to build consumer and investor confidence all stakeholders must continue to work together to rebuild trust in the sector.
Centrica achieved a profit before tax of £1.6bn compared to 2012s £2.4bn, while operating profit for British Gas Residential fell six per cent, this was attributed to higher commodity and non-commodity costs.
The report came only hours after energy regulator Ofgem referred the energy sector to the Competition Markets Authority (CMA).
Ofgem proposed that the CMA investigate the market to consider "once and for all" whether there are barriers to effective competition.
The regulator promised it would continue to take action to protect consumers including increased penalties for companies that break the rules.