Centrica boss defends British Gas prices

British Gas's residential business has reported a small drop in profits for 2013 due to warmer weather and higher wholesale energy costs.

Adjusted operating profit for the full year came in at £571m, down 6% on the £606m recorded a year earlier. Owner Centrica also posted a dip in profits, at £2.7bn, down from £2.74bn.

Earlier this month, British Gas's prices and profits were questioned by Energy Minister Ed Davey.

But Sam Laidlaw, chief executive of Centrica, told the BBC that his company "understands the difficulties that many households have" and that British Gas had "very competitive propositions in the marketplace".