15 February 2024 , 12:07
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The boss of British Gas's parent company, Centrica, has called for a "social tariff" which allows less affluent Britons to pay less for their gas and electricity.
Chris O'Shea, Centrica's chief executive, stated that implementing a special tariff for the most disadvantaged is "the best thing we can do for consumers". It has been revealed that Centrica's retail arm, largely comprised of British Gas, saw profits rise drastically from £94 million in 2022 to £799 million last year.
British Gas was allowed to recover some costs it had incurred during the energy crisis early last year. This contributed £500 million to British Gas's profits. Mr O'Shea said energy companies need to make a profit in order to remain viable.
The failure of numerous unhealthy suppliers over the past couple of years has cost households around £88 each. However, further measures are needed to safeguard the poorest, said the chief executive.
Mr O'Shea said: "The poorest in society are really struggling but it's not just the energy. It's energy, it's rent, it's mortgages, it's food and all manner of costs," he told reporters on a call. What I'm focused on is how do we fix this in energy and that's why we need a social tariff, that's why we need the standing charge to disappear."
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"I think that's the best thing we can do for consumers. That will reduce the cost for the poorest in society, the people that are really, really struggling."
British Gas profits before tax went down to £2.8 billion from £3.2 billion last year. But the company made a £6.5 billion profit before tax this year because of how they buy energy early. The company has also taken on 700 new staff for their British Gas call centres, which has helped cut complaints by 8%.
"We take care of our colleagues, they take care of our 10 million customers and the resulting performance takes care of the shareholders," said Mr O'Shea.
Last year, customers didn't use as much energy as in 2022. Mr O'Shea said it's hard to tell if this was because people are being more energy-efficient or just because energy costs more now.