According to GB News, British Gas and its parent company, Centrica, are facing criticism after reports revealed they made £310 in profit per household while millions in the UK struggle with high energy bills. Despite a decline in profits compared to the previous year, campaigners argue that energy firms continue to benefit at the expense of consumers.
Decline in profits but continued controversy
Centrica’s household supply earnings fell by more than half in 2024, dropping from £751 million to £297 million. The company’s overall adjusted earnings also saw a decline, from £3.5 billion in 2023 to £2.3 billion last year, reflecting the end of emergency payments allowed during the energy crisis.
Meanwhile, underlying operating profits fell from £2.75 billion to £1.55 billion, while the statutory operating profit dropped significantly from £6.51 billion in 2023 to £1.7 billion. This sharp decline was largely attributed to the conclusion of crisis-related allowances previously permitted by Ofgem, the UK’s energy regulator.
Although Centrica CEO Chris O’Shea described 2023 as “a good year” for the company due to improved operations and customer satisfaction, campaigners argue that the energy system remains fundamentally unfair.
Breakdown of profits and market impact
Centrica’s profits came from multiple divisions, with £269 million directly generated from British Gas household supply, which serves 7.46 million households, down from 7.53 million in 2023.
Another £307 million came from Centrica’s trading division, which profits from volatile oil and gas prices. This aspect of Centrica’s business has been particularly controversial, as critics argue that the company benefits from price instability that ultimately leads to higher energy costs for consumers.
Since 2020, Centrica has accumulated nearly £9 billion in operating profits, equating to £310 per household. Campaigners argue that these figures highlight a deeper issue within the energy market, where a handful of major corporations continue to generate significant profits while consumers face increasing financial hardship.
Criticism from consumer advocacy groups
Campaigners from groups like Warm This Winter and End Fuel Poverty Coalition have strongly condemned the profits made by British Gas, emphasising the struggles of low-income households.
Caroline Simpson, from Warm This Winter, highlighted that just 20 energy firms have made over £483 billion in profits since 2020, describing the system as “starkly unequal.”
Meanwhile, Simon Francis, from End Fuel Poverty Coalition, criticised Centrica’s share buyback programme, arguing that instead of benefiting shareholders, these funds should be redirected to support vulnerable customers.
He stated that “Centrica continues to post massive profits while households continue to struggle in cold, damp homes.”
Public concern over rising energy bills
With the UK experiencing one of its coldest winters in recent years, concerns over energy affordability have intensified. Research from ResQ’s energy insight team found that:
- 41.1% of billpayers worry about falling into energy debt or are already struggling.
- 57.8% of customers believe energy firms should show more compassion when dealing with struggling households.
The UK recorded its coldest January night in 15 years, compounding the difficulties for households struggling to heat their homes.
Gill Marchbank, CEO of ResQ, emphasised the impact of extreme weather conditions on vulnerable people, calling for greater customer support from energy providers. She also pointed to a “customer-compassion rift”, where some energy firms fail to recognise the real human impact of poor customer service and affordability concerns.
