Tag: Energy firm profits

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.

Shell and Equinor deepen UK fossil ties as more profits posted

Energy giant Shell has posted adjusted profits for the fourth quarter of £2.39 billion and has announced another £2.7 billion of share buybacks on top of a dividend hike.

It comes the day after Equinor also large profits. The two firms have recently announced they will merge their offshore drilling operations in the UK, with each company owning 50% of the joint venture and Equinor contributing its £1.3 billion UK ‘tax shelter’ – or credits that can be used against paying future UK taxes.

A spokesperson for the End Fuel Poverty Coalition said:

“With Shell reporting another substantial profits haul, it’s worth remembering that these corporate windfalls do not occur by accident.

“For example, the company’s new joint venture with Equinor to merge the two firms’ UK fossil fuel assets highlights just how intertwined big energy profits, tax arrangements and supply of gas from a depleting North Sea reserve have become.

“But as debate continues over the future of the Energy Profits Levy, the contrast between firms locking in billions of profit and households struggling with high energy bills is stark. Ministers must ensure the system is on the side of the consumers, not the energy giants that have generated more than £125 billion in UK profits since 2020, even as millions live in cold, damp homes.”

Equinor posts $6.2bn quarter as households continue to face winter hardship

Equinor, the Norwegian fossil fuels group, has posted adjusted earnings before tax in the last three months of 2025 of $6.2 billion.

While the North Sea is running out of gas, the firm is set to benefit from the UK market into the future with around 10% of national demand in the hands of two companies – Equinor and Centrica – under a deal struck in 2025.

Combined, energy giants have generated over £125 billion in profits on their UK operations since the energy crisis started according to an analysis of company reports.

A spokesperson for the End Fuel Poverty Coalition commented:

“Equinor’s latest results show that even major producers continue to deliver multi-billion-dollar profits, with plenty of money still flowing out of consumers’ bills and back to the energy giants and their shareholders.

“Yet while companies like Equinor capitalise on the ongoing energy bills crisis, millions of UK households are in a fifth winter of hardship.

“The contrast between corporate gains and household pain underscores the urgent need for a fairer energy system that uses excess industry returns to cut bills and improve home energy efficiency, not line shareholder pockets.”

Price cap tweaks fail households as cold snap hits the country

A marginal change to the energy price cap will put more pressure on struggling households this winter, campaigners have warned, with average bills still set to remain almost £700 higher than before the energy crisis.

Even when the changes to bills announced in the recent Budget come into effect in the spring of 2026, average energy bills will remain higher than they were in winter 2020/2021 and above the level of the price cap at the last General Election.

Meanwhile, evidence shows unsafe housing conditions are becoming entrenched. Almost a third (29%) of adults say they are unable to keep their home at the recommended minimum temperature of 18°C. [1]

For 14% of UK adults, the situation is so severe that they consider themselves to live in cold, damp homes, with much higher rates among low-income households, families with children and people with long-term health conditions.

Campaigners warn that these conditions are not just uncomfortable, but dangerous.

Among those living in cold, damp homes, almost one in five (18%) say they have experienced high levels of carbon monoxide in their home in the past 12 months. [2]

Yet even as households face growing risks, regulatory decisions continue to protect industry returns.

In the detailed price cap documents, Ofgem confirmed that the Earnings Before Interest and Tax (EBIT) allowance built into the cap will rise by £1.51 per household from January to March 2026. This represents a 4% increase, potentially handing suppliers millions of pounds of extra profit while the average household energy bill will rise by 0.2 percent. [3]

More broadly, analysis shows that just 27 energy companies from across the industry have made more than £125bn in UK profits since 2020, forming part of more than half a trillion pounds in global profits across the sector during the energy crisis. More than four-fifths of those profits come from companies with extensive involvement in the gas industry.

But reliance on gas is not only driving bills and profits – it is also a shrinking and risky foundation for the UK’s energy system.

Official data shows the UK will no longer be able to meet national heating demand using domestically extracted gas from 2027, underlining the growing disconnect between record profits and a North Sea basin in long-term decline.

A spokesperson for the End Fuel Poverty Coalition, said:

“It really is a case of every little doesn’t help as cold weather grips the country and the price cap nudges upward.

“Households are facing their fifth winter of unaffordable energy bills. For millions of people, this cold isn’t an inconvenience, it’s a real risk to health and safety as they struggle to keep homes warm.

“More households are being pushed into cold, damp homes where cutting back on heating, delaying repairs and blocking ventilation increases the danger of carbon monoxide exposure.

“At the same time, the energy industry has made more than £125bn in UK profits since 2020, including firms operating in a declining North Sea. Ministers must act now by funding the Warm Homes Plan, fixing energy pricing and introducing a fair social tariff so people can stay safe every winter.”

ENDS 

[1] Opinium conducted an online survey of 2,000 UK adults between 25th and 27th November 2025. Results have been weighted to be nationally representative.
18 degrees centigrade is the level advised by World Health Organisation experts to reduce the risk of illness. Telfar Barnard L, Howden-Chapman P, Clarke M, Ludolph R. Web Annex B. Report of the systematic review on the effect of indoor cold on health. In: WHO Housing and health guidelines. Geneva: World Health Organization; 2018 (WHO/CED/PHE/18.03). Licence: CC BY-NCSA 3.0 IGO.

[2] Carbon monoxide, which is colourless, odourless and potentially fatal, is produced by faulty or poorly ventilated gas appliances, with risks increasing when heating systems are under-used or poorly maintained due to cost pressures. 

[3] See Ofgem summary of price cap changes pdf, p7.

Energy Profits Levy retained as households still face high bills

The Chancellor’s decision to keep the Energy Profits Levy has been met with fierce opposition from parts of the energy industry, despite falling revenues from the tax.

A spokesperson for the End Fuel Poverty Coalition commented:

“The Chancellor was right to maintain the Energy Profits Levy and then reform it after the current period ends. Given tax rises elsewhere in the budget, it would have been perverse to have then handed a tax break to companies that are making extraordinary profits during the crisis.

“Given that the North Sea will naturally run out of gas, more drilling won’t make energy cheaper or the country more energy secure. But as the gas industry declines, it is vital that workers and communities affected by the changing energy mix are properly supported.

“Even with the changes announced in the Budget, we still expect that from April 2026, average energy bills will be hundreds of pounds higher than they were in winter 2020/2021.

“And in Scotland, we will see a real terms reduction in the funding available for vital energy efficiency measures with the scrapping of the ECO levy, which we would urge the Chancellor to address with the receipts from the Windfall Tax.

“The millions of households who will still be struggling with the cost of energy need further bold action from Governments in Westminster and Holyrood in reform of energy pricing, targeting energy bill support at those who need it, and in creating an ambitious Warm Homes Plan to upgrade cold, damp homes.”