The owner of British Gas is facing backlash after its profits increased ten-fold in just one year, reaching a staggering £750 million.
The energy supplier attributed this significant jump from £72 million in 2022 to the price cap set by regulatory authority Ofgem.
Record-breaking profits
In total, Centrica, the parent company of British Gas, reported a profit of £799 million for its retail arm, which mainly comprises British Gas. This is a substantial increase from the previous year's £94 million.
The company stated that, like other energy firms, it was allowed to recover some of the costs incurred during the energy crisis, which contributed an additional £500 million to British Gas' overall profits.
In the midst of a cost-of-living crisis
Meanwhile, official figures have revealed that over three million households are currently experiencing fuel poverty. Without government support for struggling families, this number would have been even higher, with an additional 500,000 households affected.
Fiona Waters, a representative from the campaign group Warm This Winter, criticized British Gas' "obscene" profits, stating that they exemplify the issues of a rip-off culture in Britain. She emphasized that millions of individuals are living in cold and damp homes due to their inability to afford energy bills.
The perspective of the regulator
Ofgem, the regulatory authority, defended the notion of "reasonable" profits, emphasizing their importance for the sustainability, service, and innovation of energy companies.
Centrica's response
Chris O'Shea, the CEO of Centrica, acknowledged the struggles faced by the most vulnerable members of society. He highlighted that it's not just energy costs but also the rising prices of rent, mortgages, and food that are impacting people's financial situations.
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