Reputational winners and losers
Gas, Water & Multiutilities was the worst performing sector of the day on the FTSE 100 moving down by -2.29% on yesterday’s opening.
Centrica saw the biggest decrease when the group announced that the government’s decision to land North Seal oil producers with a tax rise will result in a £300m decrease in profits and force the company to cut its UK investment.
British Gas was the biggest reputational loser of the day falling from its top position in Alva’s Reputation Index for the utilities sector with a -0.06 decrease in the company’s overall monthly average score – its biggest reputation score drop since it announced a price increase in November 2010.
British Gas said the wholesale price of gas and power for delivery next winter is 25% higher than last year, but the price paid by households has yet to reflect the higher price. This news affects a broad range of stakeholders including customers, the regulator, government, investors, financial analysts and consumer advocacy groups and it gained widespread coverage across mainstream, financial and social media, hence the significant decline in the company’s reputation score.
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