British Gas owner slammed for making £310 in profit per household amid energy bill crisis: ‘Greedy!’
Campaigners are slamming British Gas owner Centrica for making £300 in profit per household since the beginning of the energy bill crisis despite millions of families struggling with the cost of living.
This condemnation comes as the parent company has seen its household supply earnings plummet by more than half in 2024, with profits falling from £751million to £297m.
Furthermore, the energy giant’s wider business also reported a sharp decline, with underlying operating profits dropping to £1.55billion from £2.75bn the previous year.
According to the latest figures from the British Gas owner, the company’s statutory operating profits saw an even steeper fall, declining to £1.70billion from £6.51bn in 2023.
The significant drop in profits was primarily attributed to the end of energy crisis allowance payments.
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Regulator Ofgem had previously allowed energy suppliers to recover costs incurred during the crisis, but this provision came to an end last year.
Centrica’s profits came from multiple divisions across the company, with £269m generated directly from households through its British Gas supplier arm.
The company’s market trading division, which profits from volatile oil and gas prices, contributed £307m to the total.
Since 2020, Centrica has accumulated nearly £9bn in operating profits, equivalent to £310 per household.
Caroline Simpson, a campaigner for the Warm This Winter campaign, criticised the energy system’s “stark inequality”, noting that just 20 companies like British Gas have made over £483bn since 2020.
“Our bills are high because of greedy gas and oil companies,” she said, calling for better insulation and domestic energy sources.
Simon Francis, a campaigner from the End Fuel Poverty Coalition added: “Centrica continues to post massive profits while households continue to struggle in cold damp homes.”
He criticised the company’s share buyback programme, suggesting the money should help struggling households instead.
Centrica’s earnings before interest and amortization expenses (EBITA) reached £2.3bn in 2024, exceeding the company’s own forecasts.
This performance comes despite the significant drop in operating profits, with the company’s total profits since 2020 now reaching almost £9bn.
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Research conducted by ResQ’s energy insight team suggest that 41.1 per cent of billpayers are concerned about falling into energy debt over the next year, or are contending already being in it.
Some 57.8 per cent of billpayers believe “compassion” from energy firms is extremely important when dealing with customers in debt.
Gill Marchbank, CEO at ResQ, said: “We’re experiencing a particularly grueling winter right now, with the UK having experienced mass snowfall and recorded its coldest January night in 15 years in recent weeks.
“These conditions can have real human impacts – especially on the most vulnerable in our society – and make our recently published Don’t Freeze report all the more timely.
“The data is clear; many billpayers are worried or already struggling to pay their energy bills and expect to receive support and empathy from their providers.
But what many are experiencing is a customer-compassion rift, with some providers failing to identify the personal impacts of poor customer care – as well as the commercial incentives behind providing the right support.”