British Gas' 'obscene' surge in profits branded as UK in fuel poverty crisis

15 February 2024 , 18:52

1025     0

British Gas annual profits have been branded 'obscene' (Image: Getty Images)

British Gas revealed an “obscene” 10-fold surge in annual profits today as the scale of the nation’s fuel poverty crisis was laid bare.

The country’s biggest energy supplier raked in £751million last year, up from £72million in 2022. The leap was fuelled by £500m of energy crisis costs which it was allowed to recoup from bills. Owner Centrica made profits of nearly £2.8billion.

But Fiona Waters, spokeswoman for the Warm This Winter campaign, said: “British Gas’s obscene profits just epitomize rip off Britain where bosses are paid millions each year at the expense of ordinary people, millions of whom are living in cold damp homes because they simply cannot afford to pay their huge energy bills.”

Simon Francis, coordinator of the End Fuel Poverty Coalition, said: “These profits are astronomical for a firm providing the energy people need to stay warm and safe.”

The bumper results are set to trigger a bonus bonanza for its fatcat boss Chris O’Shea, who recently admitted he could not justify the £4.5m pay and perks package he netted for 2022, saying: “You can’t justify a salary of that size. I am fortunate. I don’t set my own pay, that’s set by our remuneration committee.”

Shop prices 'are yet to peak and will remain high' as inflation hits new heights

Today, he said: “To be sustainable, you must make profits.” The haul came on the same day figures showed that 3.7 million people in England live in fuel poverty. But campaigners claim the true picture is far worse. Measured by those spending at least 10% of income on energy before housing costs around 6.5 million UK households are in fuel poverty, say charity National Energy Action.

Meanwhile, households have amassed a staggering record £2.9bn of energy debts. Energy bills are forecast to fall by around 16% in April, but it will leave them higher than before Russia invaded Ukraine.

British Gas said all its profits came in the first half of last year, and that it made a loss in the second half. Centrica’s adjusted profit fell from £3.2bn the year before. As well as bumper profits, Centrica upped dividends by a third, with £800million returned to shareholders, and another £1billion to come from buying back more of its shares. Centrica insisted 500,000 small shareholders were among those to benefit.

Graham Hiscott