Tag: Energy firm profits

BP profits more than double as Iran conflict delivers war windfall

BP has reported underlying profits of $3.2 billion (£2.4 billion) for the first quarter of 2026, more than double the figure from a year earlier, after oil and gas prices surged following the outbreak of conflict in the Middle East.

The result beat analyst expectations and was driven largely by BP’s oil trading division, which posted profits of $2.5 billion (£1.84 billion) for the quarter, up from just $103 million (£76.2 million) a year ago.

New analysis by the End Fuel Poverty Coalition shows that energy firms posted over £23.1 billion in profit from UK operations in 2025, before any Iran conflict windfall had been counted.

A spokesperson for the End Fuel Poverty Coalition said:

“These astronomical profits are a startling reminder that when conflict drives up the price of oil and gas, energy companies profit and households pay. That is not a coincidence, it is a consequence of the way our energy system is structured.

“While the energy industry lobbies against the Energy Profits Levy, we are now seeing the level of profits being posted which shows why it is so necessary.

“Household bills are forecast to surge again from July. The Government must respond with emergency support for the hardest-hit households and accelerate the shift to a renewables-led energy system that insulates people from price shocks caused by our exposure to oil and gas markets.”

Robert Palmer, Uplift deputy director, said:

“It’s appalling that while millions are worrying over energy bills, oil giants like BP are raking in billions.

“Today the oil major has been given a further boost with an unearned windfall because of the Iran conflict. It’s just the first of the bumper profits oil and gas firms will make as this crisis drags on.

“Worse, BP is also rowing back on the very things, like investment in wind energy and solar, that will get us off the fossil fuel rollercoaster. It wants us to stay hooked on oil and gas so it can keep profiting.

“The only sensible way to counter energy shocks is by getting off oil and gas through renewables and upgrading our homes with solar power and heat pumps.

“BP clearly has no commercial interest in transitioning away from fossil fuels – and shows no concern for the public’s need for an affordable energy supply and a safe climate.”

The End Fuel Poverty Coalition has written to Ministers calling for emergency support for the hardest-hit households ahead of the July price cap rise, including those on prepayment meters, off-gas-grid homes relying on heating oil and LPG, and households in energy debt.

Energy profits up as households brace for higher bills

Energy firms posted over £23.1 billion in profit from UK operations in 2025, according to new analysis of company reports. [1]

The figures, based on the returns of 30 companies heavily involved in the UK energy system, are an increase from £22.7 billion on 2024 numbers, but a slight decrease from the £27.6 billion posted in 2023 during the height of the Russian-triggered price shock.

The data does not take into account returns generated by the US-Israel conflict with Iran, where BP has already suggested it will make ‘exceptional’ returns and Shell could bank up to £5 billion in oil price profits. The next corporate profits season starts on Tuesday with BP posting its quarter one results.

Households on heating oil and LPG energy have already seen energy costs soar, prompting the Government to provide limited emergency relief and extend support for these households to move off oil and gas.

All households will see an increase in energy bills from 1 July when the next Ofgem price cap period starts.

According to the Common Wealth think tank, around a quarter of an energy bill is taken in profit by a range of firms involved in the industry. But while the Windfall Tax continues to be attacked by corporate lobbyists, the public back the Tax by a margin of two to one and ministers last week extended the tax paid by some energy giants.

Additionally, energy company bosses have been seeing their personal wealth grow off the  back of the current crisis, with Harbour Energy’s Linda Z Cook seeing the value of her shareholding rise by more than £4 million to £26 million in just the first four weeks of the conflict.

Simon Francis, The End Fuel Poverty Coalition said:

“These figures are a damning verdict on an energy system that is failing the people it is supposed to serve.

“Households were already struggling with rising bills before Russia invaded Ukraine and sent gas prices through the roof. Now Trump’s war in Iran is delivering a third hammer blow.

“While households face another bill rise in July and millions remain trapped in fuel poverty, the companies that control our energy supply are cashing in.”

Robert Palmer, Uplift Deputy Director, said:

“It’s appalling that while millions are worrying over energy bills, these figures show that even before the war in Iran, energy companies were raking in billions of profits.

“The war is going to make all of this worse – with higher energy bills for most of us, while around the world oil companies are making an obscene $30 million (£22 million) an hour in unearned profits.

“The UK’s dependence on oil and gas is making all of us poorer. All except for the oil bosses and their shareholders who, once again, are profiting at our expense.

“That’s why we must ramp up renewables, and upgrade homes with solar power, batteries and heat pumps. It is the only way to insulate ourselves from energy shocks and protect the climate. We also need to support those who need it most with financial help. We should be putting these profits back in people’s pockets, not making the public pay for what is a humanitarian and economic disaster.”

Researchers working for the End Fuel Poverty Coalition examined the declared profits of 30 energy firms, from across the industry, including producers such as Shell and Equinor, grid operators including National Grid and UK Power Networks and suppliers such as British Gas, as well as energy trading companies. Any firms posting losses in this period are taken into account and five firms monitored are yet to file accounts for 2025.

ENDS

[1] The data in this tracker has been collated from publicly available company reports and industry sources, with profits adjusted where possible to reflect UK operations. For multinational businesses, UK profit estimates are based on disclosed proportions of revenue, production, or operating assets attributable to the UK, or on reasonable assumptions using sector benchmarks where disclosure is limited. The figures are indicative, providing a consistent basis to assess trends in UK energy-sector profitability and its relationship to household energy costs. These measures differ from company to company due to reporting processes and regulatory requirements in different jurisdictions. In determining which measure of profitability to use, the research has prioritised the measure preferred in the company’s own accounts. The totals declared here include offsetting any losses made by some of the firms in some years of the period examined. 30 firms were monitored, with 26 making a profit over 5 years. One is yet to post results. These firms were selected by the researchers to create a cross section of the energy industry and to reflect those most frequently covered in the media.

Full information available at: https://www.endfuelpoverty.org.uk/news/energy-firm-profits-tracker/

Data as at 31 March 2026.

The data was compiled by freelance business journalist David Craik and examined and peer-reviewed by a business analyst with board-level experience within complex multinational businesses.

David’s experience has included writing business and city news and features for national newspapers and magazines such as The Daily Mirror, Sunday Times, Wall Street Journal, Scotsman and Daily Express. Much of his content focuses on company financial results and reports in the energy sector and on personal finance issues including wealth management, property, investing and managing household budgets and bills.

Wall Street counts its winnings as UK households suffer

As ordinary households brace for higher energy bills and rising inflation driven by the Iran war, the world’s largest investment firms have watched their stakes in oil and gas companies surge in value. The numbers are staggering.

The Mirror has revealed that BlackRock, the New York-based asset manager, oversees more than £10 trillion in assets on behalf of governments, pension funds, and wealthy individuals. It is also the largest shareholder in Centrica, the owner of British Gas.

Since the Iran war erupted at the end of February, the value of BlackRock’s stake in Centrica has jumped by more than £30 million. Its holdings in Shell have leapt by £860 million. Its BP investments are up £580 million. It also holds stakes in Chevron, ExxonMobil and ConocoPhillips.

It is not just BlackRock. German chemicals giant BASF sold a 5% stake in North Sea producer Harbour Energy in late March, weeks after the war began, netting £36 million more than it would have received before the crisis.

Meanwhile, Harbour Energy chief executive Linda Z Cook has seen her personal shareholding rise by millions.

The knock-on effects for UK households, already navigating a cost of living crisis, will be felt at the petrol pump, on energy bills and through wider inflation.

A spokesperson for the End Fuel Poverty Coalition, commented:

“Behind these share price gains sit a small group of the world’s most powerful investment firms. These are not passive bystanders. They are the financial architecture that keeps oil and gas profits flowing from the pockets of ordinary people into the pockets of those who already have the most.

“That the world’s biggest investment firms will have seen their holdings surge in value as ordinary households face soaring bills will sicken anyone struggling with the economic consequences of Trump’s conflict.

“And it is worth remembering that these firms are also among the most powerful lobbying voices in global financial markets.

“The concentration of energy wealth in the hands of a small number of giant investment firms underlines why a strong windfall tax, with revenues redirected to households, is not just fair, it is essential.

“If the Government is serious about using these revenues to help people struggling with their bills, it must resist the lobbying power of an industry whose backers have rarely had it so good.”

Energy rich list reveals bosses whose fortunes surge as bills soar

The bosses of some of Britain’s biggest energy companies have seen their personal fortunes surge by millions of pounds as a result of the conflict in the Middle East.

Analysis of shareholdings declared in annual reports and share price movements between 26 February and 27 March 2026 shows how energy chiefs may have benefited from the crisis, even as millions of households brace for a sharp rise in bills.

Among them, Harbour Energy’s Linda Z Cook saw the value of her shareholding rise by more than £4 million to £26 million.

Harbour accounts for around 15 per cent of the UK’s domestic oil and gas output and has been led by American Cook since 2021. Prior to leading the firm, which she owns almost 9 million shares in, Cook spent much of her earlier career at Shell.

Meanwhile Shell’s Wael Sawan added nearly £1.8 million to take his stake to £13.2 million. Sawan joined Shell as an engineer in 1997 and spent the early part of his career in Oman before rising through the ranks to lead Shell’s operations in Qatar, including overseeing its liquefied natural gas division.

At Centrica, Chris O’Shea saw the value of his shares rise by over £300,000, even as the British Gas owner’s boss told the BBC this month that higher household bills were “inescapable” and had previously said that it was “impossible to justify” his salary and rewards package.

At BP, incoming chief executive Meg O’Neill only took the reins on 1 April, but interim boss Carol Howle saw her shares grow by over £500,000 during the period. Departed chief executive Murray Auchincloss, who held more than 1.8 million shares at the time of his departure, could have seen his stake rise to £10.6 million at current prices.

The picture is even more dramatic among the global giants whose share prices have been supercharged by the Middle East conflict.

Chevron chief executive Michael Wirth saw the value of his near two-million-share stake rise by more than £44 million in a single month, taking his total holding to more than £312 million.

ExxonMobil’s Darren Woods added over £5 million to sit at more than £40 million, and TotalEnergies chief Patrick Pouyanné’s stake now stands at £39 million. Equinor, the Norwegian state-backed firm that supplies much of the gas the UK depends on, saw its shares rise more than 45 per cent, adding nearly £700,000 to the personal stake of chief executive Anders Opedal.

Simon Francis, coordinator of the End Fuel Poverty Coalition, said

“There are very few winners from the conflict in the Middle East, and most of those are the wealthy oil and gas bosses who help set the prices we all pay for our energy.

“But while these fossil fuel chiefs argue for more drilling in the North Sea and count the profits they will make from any new exploration, millions of UK households are facing the prospect of spending more than a tenth of their income just to keep the lights on and the heating running.

“Politicians must show whose side they are on: the households struggling with energy bills, or the millionaires calling for an early end to the Windfall Tax on North Sea profits.”

The figures come as wholesale gas prices remain at levels not seen since 2023. Average household energy bills are forecast to rise to £1,929 from 1 July 2026, a 18 per cent increase on the current cap.

Separate End Fuel Poverty Coalition data shows that energy firms have already made more than £125 billion in profits on their UK operations since 2020. At current energy prices, the Government stands to collect substantial additional tax revenue via the Energy Profits Levy.

The Coalition has called on the Government to direct that revenue towards households trapped in energy debt and those who will suffer most from a sharp rise in bills as a result of the conflict.

Caitlin Boswell, interim Deputy Director at Tax Justice UK said

“Different parts of the economy are set to make eye-watering paydays as they spot opportunities for profiteering from the US-Israeli war on Iran and immense human suffering, while ordinary people see their energy bills sky-rocket.

“That’s why the Chancellor should urgently implement excess profits taxes on energy, defence and banking sectors – called for by wider civil society – to send a clear message that the UK won’t accept profiteering from war and crisis.

“This needs to be coupled with tax system reform that ensures the massive asset price rises, like stocks in energy companies, are taxed fairly. Failing to do so will see stock price explosions channel enormous sums of money to the pockets of the super-rich, while millions in the UK are made more vulnerable to the cost of living crisis.”

Deputy director of Uplift, Robert Palmer, added:

“It’s appalling that while millions are worrying over their energy bills, we are seeing energy barons rake in millions of profits. One North Sea CEO has seen their wealth increase £4 million since the start of the Iran conflict – that’s an extra million a week.

“What’s more these companies are using this crisis to call for even more drilling in the North Sea. This would not take a penny off bills, but would lock us into an unaffordable energy supply for longer and just increase oil company profits even more.

“The oil and gas industry has been clear that the only way they would consider investing in the North Sea now, an ultra-mature and high cost basin, is if the government removes the windfall tax, which is shameful. We need political leaders who put bill-payers before billionaires and not give in to their demands.”

The data also shows that 12 of the world’s biggest energy companies added more than £233 billion in combined market value in a single month. Market capitalisation is one of the most widely used measures of a company’s overall financial health and the confidence investors place in its future earnings.

When market capitalisation rises sharply, it signals that financial markets expect the company to generate significantly higher profits in the coming months and years. Over the same period (26 February to 27 March 2026), the general FTSE 100 Index of leading UK share prices has fallen by nearly 9%.

Jonathan Bean, Fuel Poverty Action spokesperson, said:

“The Government must act urgently to stop more obscene energy profiteering from war, which will leave millions unable to afford the essential energy they need.  Windfall tax loopholes must be removed and fair wealth taxes introduced.”

ENDS

All shareholding valuations are derived from closing share prices on 26 February and 27 March 2026. All non-UK currencies have been converted using the mid-market rate as per the relevant date. Being featured on this list or in this news story does not imply any wrongdoing on the part of companies or individuals and all share allocations have been made in line with standard remuneration packages.

Full data is available here (pdf).

Sources for shareholdings

Linda Z Cook / Harbour Energy

Harbour Energy Annual Report and Accounts 2025, Directors’ Remuneration Report

https://www.harbourenergy.com/media/a11hxbdn/harbour-energy-annual-report-accounts-2025_web.pdf

Wael Sawan / Shell

Shell Annual Report and Accounts 2025, Directors’ Remuneration Report

https://www.shell.com/investors/results-and-reporting/annual-report.html

Chris O’Shea / Centrica

Centrica Annual Report and Accounts 2025, Directors’ Remuneration Report

https://www.centrica.com/media/ckfb0qxj/annual-report-and-accounts-2025-untagged.pdf Page 101

Carol Howle and Murray Auchincloss / BP

BP Annual Report and Form 20-F 2025, Directors’ Remuneration Report. Shareholding figures based on position as of 13 February 2026.

https://www.bp.com/content/dam/bp/business-sites/en/global/corporate/pdfs/investors/bp-annual-report-and-form-20f-2025.pdf

Darren Woods / ExxonMobil

ExxonMobil SEC Filing, April 2025

https://investor.exxonmobil.com/sec-filings/all-sec-filings/content/0001193125-25-073986/0001193125-25-073986.pdf

Patrick Pouyanné / TotalEnergies

TotalEnergies Universal Registration Document 2025. Shareholding figure as of 18 March 2026.

https://totalenergies.com/system/files/documents/totalenergies_universal-registration-document-2025_2026_en.pdf

Michael Wirth / Chevron

Chevron Proxy Statement 2025

https://www.chevron.com/-/media/shared-media/documents/chevron-proxy-statement-2025.pdf – Page 110

Anders Opedal / Equinor

Equinor Remuneration Report 2025, shareholding as of 31 December 2025

https://cdn.equinor.com/files/h61q9gi9/global/a2b3945f550c9cd7f2e3e6085fc84d84e97fdb0b.pdf?2025-remuneration-report-equinor.pdf

The data was compiled by freelance business journalist David Craik. David’s experience has included writing business and city news and features for national newspapers and magazines such as The Daily Mirror, Sunday Times, Wall Street Journal, Scotsman and Daily Express. The data was peer reviewed by a former Bloomberg economist with expertise in the energy sector.

Civil society calls for windfall taxes on crisis profits

More than 40 civil society organisations and trade unions have written jointly to the Prime Minister and Chancellor calling for excess profits taxes on sectors set to benefit financially from the economic fallout of the conflict involving Iran.

The signatories, who include National Education Union, Tax Justice UK, Greenpeace UK and the End Fuel Poverty Coalition, are urging the Government to act against profiteering as energy bills, fuel costs and household essentials face further upward pressure. They propose that revenues raised should be directed towards direct cost of living support and long-term investment in economic resilience.

The letter follows new data showing North Sea energy firms are already positioned to make additional profits from rising gas prices, with banks, mortgage providers, defence contractors and agribusiness also expected to see significant revenue increases.

Faiza Shaheen, Executive Director of Tax Justice UK who coordinated the letter said:

“Too often UK governments have failed to protect households and small businesses from the profiteering corporates and super-rich individuals who circle around crises like vultures. The Chancellor needs to show that this will not be yet another crisis where the rich get richer, while everyone else foots the bill.”

A spokesperson for the End Fuel Poverty Coalition said:

“Gas prices have more than doubled since late February, and households are already struggling with energy bills that have been stuck at elevated levels for five years. The latest global disruption is a stark reminder of the cost of our dependence on imported fossil fuels. Every time conflict or instability strikes overseas, ordinary households pay the price through their energy bills.

“The Government must act urgently to protect households from the impact of rising prices and ensure that the billions in excess profits energy companies are making during this crisis are redirected to support the people who need it most. Wiping out household energy debt, strengthening the Warm Home Discount and accelerating investment in home insulation would all help cushion the blow.”

The organisations are specifically calling for a strengthening of the existing Energy Profits Levy on North Sea oil and gas companies, a new levy on UK bank profits, and additional excess profits taxes on defence, agribusiness and associated technology firms.

The letter cites previous crises, including the Covid-19 pandemic and the invasion of Ukraine, as periods when the wealthiest households and corporations accumulated greater fortunes and profits while millions struggled with the rising cost of living.

Since 2020, energy firms have already made more than £125bn in profits on their UK operations.

North Sea profits spike should be used to offset energy bill rises

North Sea energy firms are set to make bumper profits, which would lead to increased revenues for the Government under the Windfall Tax, according to new figures reported exclusively in the Mirror.

Fossil fuel costs surged again late last week as attacks on energy sites in Iran and Qatar were followed by threats from US President Donald Trump to “massively blow up” a key Iranian gas field.

The data shows that for every month that energy prices remain at levels seen on 18th March 2026, profits from these prices could result in over £200m in revenue through the Energy Profits Levy. If prices stayed at this level, this would result in annual income of over £2.4bn. [1]

If combined with additional offshore corporation tax revenue on energy firms’ profits, the totals increase even further to £427m a month or £5.1bn a year. [2]

While the Ofgem energy price cap is set to fall slightly from April 2026, rising wholesale gas prices mean bills will rise sharply again from 1 July. Some households are already feeling the impact of rising costs. Off-gas households relying on heating oil have reported refill prices doubling in recent weeks, LPG customers are facing rising prices and some heat network customers could soon face steep increases as energy supply contracts expire.

The End Fuel Poverty Coalition has recently asked the Government to prepare an emergency energy support framework to protect households from rising gas and oil prices which will filter onto energy bills [3].

A spokesperson for the End Fuel Poverty Coalition, said:

“Anyone still arguing against the Energy Profits Levy should hang their head in shame. Whenever oil and gas prices spike, energy industry profits rise while households are left to face higher bills, deeper debt and impossible choices.

“It is only fair that these windfall profits help households who will suffer as a result of the increases in energy bills.

“Our message to ministers is simple. Help the hardest-hit households first and be ready to move fast if this crisis gets worse. That means urgent support for off-gas homes and heat network customers, targeted bill cuts if prices rise again, action on energy debt and stronger winter protection.

“It would protect people now while longer-term reforms bring bills down for good.”

Since 2020, energy firms have already made more than £125bn in profits on their UK operations.

In Scotland, recent polling showed that voters across the political spectrum backed the Windfall Tax on energy profits in its current form.  Frazer Scott, Chief Executive of Energy Action Scotland, commented:

“The current crisis shows that energy companies continue to make excessive profits at the expense of people. People who cannot heat their homes to a safe level and are burdened by £5.5bn of unrepayable domestic energy debt. Until there is reform that puts people at the heart of the energy system it is right for big business to put its fair share back to help those that need it most.”

Uplift Deputy Director Robert Palmer, said:

“Billpayers didn’t ask for this war and are now facing a huge Trump Tax on petrol, mortgages and food, with sky high energy bills looming once the current price cap ends. Yet once again, as we saw in Ukraine, oil and gas companies are profiting from what is a humanitarian crisis.

“The extra billions they stand to make from the crisis should be taxed and used to support people through the economic pain that’s on its way. Ultimately the only way to bring down bills over the long term is to get off our reliance on oil and gas, and invest as fast as we can in renewables.”

Jonathan Bean, spokesperson for Fuel Poverty Action, said:
“Instead of the £300 bill saving the Government promised us, we now face a £300 bill jump from July. The Government failed to fix the market after the 2022 crisis, so we’ve been left vulnerable to price spikes. The Prime Minister needs to get a grip on the obscene profiteering from war, close windfall tax loopholes, and bring down our bills.”

ENDS

The End Fuel Poverty Coalition brings together more than 100 charities, health organisations, housing groups, trade unions and consumer bodies working to end fuel poverty across the UK.

[1] OBR March 2025 ready reckoners (fetched 17 March 2026), applied to OBR March 2026 EFO baseline prices. Prices assumed: $100 barrel for oil and 130p/therm gas. This calculation was made before the additional spike in prices caused by the attacks on Iranian and Qatari gas facilities on 19th March, so the figures could be higher if current prices are sustained. .

[2] Prior to the latest escalation in prices and before the OBR updated its ready reckoners on the 17th of March analysis for Granville Partners, a consultancy firm run by former Conservative Chancellor Jeremy Hunt’s ex-chief of staff estimated the total extra tax revenue at £2.7bn. This could now be at the lower end of expectations and may not be directly comparable with the analysis above.

[3] The Coalition’s proposals focus on targeted support for households most exposed to high energy costs, while retaining the ability to expand support more widely if the crisis deepens.

The immediate measures recommended include a new, longer-term, Alternative Fuel Support Scheme for households relying on heating oil, LPG and other off-gas-grid fuels, as well as support for heat network customers who face rising commercial energy prices.

The proposal also recommends preparing a targeted reduction in energy unit rates from July if the Ofgem price cap rises significantly, alongside faster rollout of a national energy debt relief scheme to address record levels of household debt.

For the winter, the Coalition is calling for reforms to existing schemes including further expansion of the Warm Home Discount and strengthening Cold Weather Payments so support reaches vulnerable households earlier.

Ministers are also urged to speed up reform to electricity pricing and prepare a scalable universal support package that could be activated quickly if energy prices spike further.

The Coalition says the proposals are designed to complement longer-term policies such as the Government’s Warm Homes Plan and Clean Power Plan, which aim to reduce energy bills permanently by improving energy efficiency and reducing reliance on fossil fuels.

Scottish Ministers step up attacks on energy Windfall Tax

The debate over the UK’s windfall tax on oil and gas companies has reignited after Scotland’s First Minister called for the levy to be scrapped. He joins his Scottish Government colleagues in putting pressure on UK ministers after lobbying from the energy industry.

Citing uncertainty caused by conflict in the Middle East, John Swinney said the Energy Profits Levy is harming investment and jobs. But with global gas prices rising again (57% increase month on month as per market data at 1400 on 4 March) and energy companies continuing to post strong profits, campaigners argue weakening the tax would not help households already struggling with high bills.

A spokesperson for the End Fuel Poverty Coalition, commented:
“Conflict in the Middle East and rising global gas prices show exactly why the Windfall Tax remains necessary, not why it should be scrapped. When geopolitical tensions push up prices, energy companies and their shareholders benefit while households face another round of higher bills from 1 July.

“Energy firms have made tens of billions in UK profits in recent years even with the Energy Profits Levy in place, so the idea that removing it will suddenly make energy cheaper or more secure simply doesn’t stand up. The North Sea is declining because of the geology of an ageing basin, not because companies are paying a fair share of tax.

“Instead of handing the industry a tax break, governments should be using these revenues to cut bills, tackle energy debt, support workers through the transition and invest in warm homes and clean energy so households are protected from exactly this kind of global price shock.”

British Gas owner still cashes in as households keep facing high bills

The owner of British Gas / Scottish Gas has reported underlying operating profits of £814 million for last year, down from £1.55 billion in 2024, making £163m from its retail businesses.

But the firm is no longer simply a retail supplier:

  • Import reliance: Analysis shows the UK will soon be unable to meet heating demand from domestically extracted gas by 2027, making imported gas and the companies that control its supply even more critical to national energy security.

  • Gas supply: Through a strategic import arrangement with Equinor, Centrica effectively controls around 10% of the UK’s gas supply, a share that gives it influence over the market just as the country becomes increasingly reliant on gas imports.

  • Import infrastructure: Centrica also has part-ownership of a key gas import terminal, further underpinning its position at the heart of UK gas flows, pricing and security.

  • Wholesale gas and power markets: Centrica is a major player in the market trading and optimisation of energy supply. This means it can profit from the volatility in the energy system. In July 2023, it was reported that market price movement meant that its energy marketing and trading division alone made £1.4 billion in profit during the year.

  • Control of storage: Centrica remains the owner of the Rough gas storage facility, a key piece of infrastructure that helps balance supply in winter and mitigate price volatility, yet storage has sat below optimal levels in recent seasons, exposing households to supply risks and higher costs, as the firm argues it needs state support.

  • Customer concerns: British Gas, owned by Centrica, was at the centre of the forced prepayment meter scandal, where vulnerable households were switched onto pay-as-you-go energy or faced the threat of disconnection. A formal investigation into the firm is still ongoing, almost three years after it was opened.

A spokesperson for the End Fuel Poverty Coalition, commented:

“Centrica’s profits are still mind boggling sums for people living in fuel poverty.

“The firm is much more than a household supplier, with real leverage over the nation’s energy supply and security. Through gas import deals, control of storage, stakes in key facilities and role in energy trading and price setting, Centrica sits at the centre of a market most of us only feel when the bills arrive.

“This influence matters because the country is becoming more reliant on imported gas as North Sea output declines. In that context, huge annual profits are not an accident, they reflect a system where utility companies extract value from relatively high bills while households struggle, especially as millions live in cold, damp homes.

“Ministers must ask whether the energy system really works for people, not for the big energy giants that have generated over £125bn in UK profits since 2020.”

Uplift Deputy Director Robert Palmer said:

“The latest profits add to the over £9 billion that Centrica has made since the start of the energy crisis in 2020, all while millions of people have struggled to afford their gas bills.

“The British Gas owner wants us to stay hooked on expensive gas, even though the UK has burned most of the gas that was in the North Sea. Regardless of any new drilling in the UK, we will be dependent on gas imports for nearly two thirds of our gas needs in just five years time and almost 100 per cent by 2050.

“The way to lower bills long term is to build more homegrown renewable energy and free ourselves from gas, whether that’s supplied by Putin’s Russia, Trump’s America or profit-hungry oil and gas companies.“

Windfall Tax in the firing line as Blair Think Tank backs energy industry

The Tony Blair Institute has repeated its call for an expansion of gas production in the North Sea and an end to the energy firm Windfall Tax.

The think tank has links to the Saudi government, the United Arab Emirates, Elon Musk’s Starlink [pdf, p8] and Trump apply Larry Ellison.

A spokesperson for the End Fuel Poverty Coalition, commented:

“The Tony Blair Institute’s so-called ‘reset’ looks less like a fresh start and more like a defence of fossil fuels and an energy industry that has made over £125bn in UK profits since 2020.

“For the Institute to call for the Windfall Tax to be scrapped, while energy giants post extraordinary profits and millions live in cold, damp homes, is staggering. That tax exists because companies benefited from a crisis that devastated household finances.

“Removing the Windfall Tax would reward profiteering and shift the burden back onto households that are still paying the price of Britain’s over-reliance on gas.

“It was exposure to volatile global fossil fuel marketsthat sent bills through the roof, not climate targets and doubling down on new North Sea exploration will not lower bills.

“Gas is sold at international prices and the North Sea is a declining geological resource that cannot meet the country’s heating needs in the long term. The answer to high bills lies in accelerating homegrown renewables, reforming electricity pricing and investing in energy efficiency, not returning to the solutions of the past.”

Jess Ralston from the Energy and Climate Information Unit said:

“With many households still facing debts from the gas crisis of the past few years, focussing on bringing down bills is particularly key for them. Electrification, through the adoption of net zero technologies like heat pumps and EVs, will gradually reduce our vulnerability to the volatility of international oil and gas prices.

While the thrust of this report is around cheaper power, it’s not clear how many of its recommendations will lower bills. More drilling in the North Sea won’t make any real difference to the gas bills British homes pay because it’s international markets driven by Putin and Trump that dictate the price. The regulator’s own analysis shows more drilling will make very little difference to how steeply North Sea output continues to decline.

“Renewable wind power lowered the wholesale power price by around a third in 2025, squeezing more expensive gas power off the system. Every wind turbine we build or solar panel we install means the UK is less dependent on gas imports and less vulnerable to volatility in the gas price. We don’t have to import wind or sunshine.”

Meanwhile a spokesperson from the Green Alliance think tank added:

“We don’t need to rethink a clean power plan that’s working – the UK generated record-breaking amounts of renewable energy last year, and wind power replacing gas cut the wholesale cost of electricity by a third. Tony Blair’s think tank rightly points out that we need to make sure businesses and families save as a result, but gives few suggestions for how to do this. Given the former politician’s extensive ties to petrostates and oil and gas firms, it’s a bad look to see his institute call for more drilling in the North Sea, which will do nothing for our energy security.”

BP posts over £5 billion annual profits

BP has reported fourth-quarter profits of £1.12 billion and overall “underlying replacement cost profits” of £5.47 billion for 2025, just over £1 billion less than in 2024.

A spokesperson for the End Fuel Poverty Coalition, commented:

“Despite city watchers saying that BP’s profits have fallen, the reality is that the firm is still generating billions of profit every year. This is just another reminder that energy giants continue to make billions while households face a fifth winter of hardship.

“These corporate windfalls do not occur by accident, they reflect a system where profits flow out to shareholders as millions live in cold, damp homes. Ministers must ensure the energy system is on the side of consumers, not the companies that have generated more than £125bn in UK profits since 2020.”

Tessa Khan, Executive Director of Uplift added:

“These results – on the back of Shell and Equinor’s profits last week – are a stark reminder why we as a country urgently need to move away from volatile oil and gas by developing more homegrown renewable energy that would shield households from global price shocks and create stable, long-term jobs.

“BP is moving away from renewables just at a time when the costs of climate change are becoming clear to everyone – whether that’s people struggling with flooded homes and rising food prices, or farmers and businesses losing income from extreme weather.

“BP is also turning its back on the UK’s energy workers who, as the North Sea basin declines, need secure energy jobs that have a future. This is a company that puts its profits above all else.