HOUSEHOLDERS boosted profits for British Gas owner Centrica at the start of the year as consumption increased by nearly a fifth compared with 2012 during the prolonged cold snap.

But the energy giant, which raised prices by 6% in December just before the harsh weather set in, said that instead of pocketing the extra earnings it would use them to prevent any further price increases “for as long as possible”.

In a trading update ahead of its annual general meeting today, Centrica said its British Gas residential business was on course to deliver full-year profits in line with expectations of £602 million - slightly down on last year due to higher costs.

It said: “Against a background of sustained cold weather and periods of higher commodity prices, Centrica has performed well in the year to date.”

The company said UK customers had increased by 28,000 over the first four months of the year due to “a competitive pricing position and continued good levels of customer service”, and revealed the major impact of freezing conditions on its revenues at the start of 2013.

“As a result of the unusual period of extended cold weather, average residential gas consumption was 18% higher in the first four months of 2013 than in the same period in 2012, and average residential electricity consumption was 3% higher,” it said.

“Recognising the economic pressures facing many of our customers, the board has determined that any benefit arising from the exceptionally cold weather will be used to maintain our price competitiveness.

“As a result of this decision, we expect the residential energy supply business to deliver an operating profit for the full year in line with expectations, weighted towards the first half.”

A spokesman said: “We will use that to effectively hold prices for as long as possible.”

Earlier this year, Centrica was criticised as “insensitive beyond belief” as it announced five bosses received £16.4 million in remuneration at a time of soaring bills for UK households.

Chief executive Sam Laidlaw received almost £5 million, with a basic salary of £950,000 topped up with bonuses and long-term share awards.

British Gas boss Phil Bentley, due to leave next month, was paid £3.1 million in 2012, up from £2.1 million a year before, to reflect higher prices and a better trading performance.

The details emerged in Centrica’s annual report, which revealed British Gas had made £606 million in profits last year - equivalent to nearly £50 per household.

Last year, more than 10% of shareholders voted against the company’s remuneration report and the issue of pay may again come into focus at the AGM today.

Centrica has defended the recent pay awards, saying bonuses were based on performance and that it had invested £2.7 billion to secure energy supplies for UK households.

In its trading update today, the company said it had made “good progress towards refreshed strategic priorities” after announcing a US liquefied natural gas export agreement with Cheniere in March as well as a joint deal with Qatar Petroleum International to buy Canadian natural gas assets in April.

Meanwhile the company’s UK business energy supply arm suffered a fall, blamed on “continuing competitive market conditions” which were “putting some pressure on margins”.

Centrica also revealed that the extended cold weather had seen reservoir volumes at its Rough offshore gas storage facility in the North Sea reach a record low level in April.

The company is due to release interim results for the first half of 2013 at the end of July.