Tag: profits

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.

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.“

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.”

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.”

UK energy industry profits surge since 2020

Energy giants have generated around £125 billion in profits on their UK operations since the energy crisis started according to an analysis of company reports. [1]

Around £40bn has been made in profit in the UK by just 27 energy firms in the last two years, yet there are continued calls from energy industry lobbyists to axe the Windfall Tax in the next Budget.

Researchers working for the End Fuel Poverty Coalition examined the declared profits firms ranging from energy producers (such as Equinor, Shell) through to the firms that control our energy grid (such as National Grid and UK Power Networks) as well as suppliers (such as British Gas) and energy trading firms (e.g. Vitol).

The total profits generated globally by the firms since 2020 stand at over half a trillion pounds, with over four-fifths (£466bn) generated by firms with extensive involvement in the gas industry. 

This is despite the fact that the gas sector will no longer be able to meet heating demand using only domestically extracted gas by 2027 and as just 14% of the North Sea reserves are now commercially viable according to official statistics [2]. 

Further analysis shows that as households face a fifth winter of sky high energy bills, over £50bn of the profits over five years are generated by electricity and gas transmission and distribution firms. 

These are the “network costs” consumers pay for maintaining the pipes and wires of the energy system and are usually paid for through standing charges on energy bills. The firms were recently criticised in a report by the House of Commons Energy Security & Net Zero Committee.

A spokesperson for the End Fuel Poverty Coalition, commented:

“Energy firms continue to post multi-billion pound profits while millions of households struggle to afford to heat their homes. 

“The figures equate to hundreds of pounds per household, per year in profit. At the same time, average annual energy bills have soared from £1,042 in 2020 to £1,755 today, after peaking even higher in early 2023. [3]

“Even after the temporary windfall tax, oil and gas giants have benefited from exceptional earnings driven by global price spikes, which stands in stark contrast to record energy debt and record levels of fuel poverty. 

“The Chancellor must resist pressure to provide a tax cut to the energy industry in the budget and ensure that the system captures excess industry profits fairly and directs revenues to protect vulnerable households and improve the energy efficiency of the nation’s coldest homes.”

Robert Palmer, Uplift Deputy Director, said: 

“It is scandalous that oil and gas companies raked in billions in recent years whilst millions of people in the UK still struggle with sky high energy bills.

“Worse, these huge profits aren’t going to support the UK’s energy workers, who are being laid off as the North Sea declines, they’re going to overseas shareholders.

“It’s clear this status quo of continuing to prop up the profiteering oil and gas industry with evermore generous public handouts can’t continue. Rather than give into lobbying by oil and gas bosses for tax cuts, the Chancellor needs to focus on the UK’s long-term energy future.

“That means investing in the UK’s renewable energy industries and supporting workers into secure, long-term jobs that actually serve the UK’s needs and bring down bills permanently.”

Faiza Shaheen, Executive Director at Tax Justice UK said:

“Energy companies’ billions in excess profits are extracted from the pain of millions struggling with the soaring costs of energy and essentials.

“Capitulating to industry lobbying and axing the windfall tax would be an unacceptable decision by the Chancellor, and a sign this government is on the side of the profiteers rather than the public. She must use the Budget to properly tax energy companies and big polluters, and invest in bringing down energy bills for ordinary people.”

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 27 making a profit over 5 years. 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 12 November 2025.

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.

[2] https://www.endfuelpoverty.org.uk/north-sea-gas-unable-to-meet-national-heating-needs-from-2027/ 

[3] £125.7bn in profits divided by 28.6m UK households (ONS) is £4,394 over the course of the 5 years of the energy bills crisis or £878 a year. Ofgem price cap figures from https://www.endfuelpoverty.org.uk/about-fuel-poverty/ofgem-price-cap/ 

New report exposes energy firm profit bonanza in 2024

An investigation by Unite the union has found that energy firms made £30 billion in profits in just one year, every family paying around £500 on the average energy bill just to fund those profits. This is the second report to arrive at a similar figure, with the Common Wealth think tank suggesting profits make up 24% of an energy bill.

A spokesperson for the End Fuel Poverty Coalition, commented:

“At a time when energy debt is soaring and millions are living in cold, damp homes, it cannot be right that the system continues to prioritise corporate profits over people’s health and wellbeing.

“Instead of turning a blind eye or listening to the powerful lobbyists calling for a cut to the Energy Profits Levy, Ministers must make sure excess profits are clawed back and used to cut bills.

“With proper investment in reforming energy pricing, providing support with bills and a national Warm Homes Plan to upgrade our leaky housing, this Government could end fuel poverty for good.”

Household energy debt surges further to £4.43billion

New Ofgem figures reveal that household energy debt has soared to £4.43 billion in Q2 2025 – more than triple pre-energy crisis levels and three-quarters of a billion pounds more than this time last year – leaving millions of families trapped in arrears they cannot escape.

The latest data [1] shows:

  • £1.45bn in debt and arrears at the end of 2020 (pre-crisis)
  • £3.69bn last year (Q2 2024)
  • £4.43bn in Q2 2025 (latest figures)

The regulator also reports that 1,133,683 electricity customers and 926,545 gas customers are now in debt without any repayment arrangement in place. Many households may owe on both accounts, meaning over a million households are struggling in energy debt.

The burden of this energy debt is shared by all bill-payers, with households facing up to an extra £145 a year on their bills to cover the collective cost of debt.

At the same time, new analysis from the Common Wealth think tank shows that around 24% of every household energy bill is taken as profit by the energy industry.

The regulator and Ministers are due to launch a new Debt Relief Scheme in the coming months, but while this is supported by members of the End Fuel Poverty Coalition, campaigners have warned it must be simple to understand and accessible. [2]

Debt experts have advised that it must include automatic eligibility for people on means-tested benefits, clear rules on what debt is covered, and flexibility in how households can apply. Experts have also stressed that suppliers should work with debt advice charities to ensure fair and consistent outcomes when implementing the scheme.

A spokesperson for the End Fuel Poverty Coalition, commented:

“Energy debt is now driving people into dangerous financial positions as we approach the fifth winter of the energy bills crisis. Previous research has found that almost one in five households in energy debt have turned to illegal money lenders, with households waking each morning fearful of what using electricity or gas might cost them.

“We must urgently write off arrears and reform the system so fewer households are powerless to pay off their debts.”

Independent Age Policy Manager, David Southgate, said:

“Older people on low incomes are increasingly bed bound by the cold – forced to turn in early in hats, gloves, scarves, and extra blankets during the winter to stay warm. Many have fallen into debt in a bid to keep the heating on, with yet another difficult winter just around the corner, they need immediate support.

“We are calling on the UK Government to tackle this mountain of debt with a properly funded and targeted debt relief scheme, alongside wider affordability reform, including a national energy social tariff, to ensure everyone can afford to heat and power their homes.”

Frazer Scott, Chief Executive of Energy Action Scotland, said:

“The latest Ofgem figures show that there has been inadequate debt relief – and there is nothing in the pipeline to make energy genuinely affordable for the households that quite clearly cannot pay. 

“The number of accounts in debt continues to rise, with average debts growing as well. Over £580 million in debt has been added in just the first six months of 2025. Without urgent intervention, this crisis will only deepen.”

Robert Palmer, deputy director of Uplift, commented:

“This is a saddening debt crisis for too many people in the UK  and is driven in part by obscene profits. It’s just plain wrong that nearly a quarter of every household bill is taken as profit by the energy industry. What’s more, the UK’s heavy reliance on expensive gas added an average of  £3,000 per household during the energy bills crisis.

“Yet again while shareholders are celebrating rising prices and huge profits, people are facing stark choices of how to ration their energy. Only by supporting struggling households now, improving energy efficiency and getting us off expensive gas through homegrown renewable energy will ministers be able to get a grip on the situation.”

Jonathan Bean from Fuel Poverty Action, added:

“Energy debt will continue to grow whilst the Government fails to deliver its promised £300 bill reduction, with energy prices 70% higher than five years ago.”

Toby Murray, Policy and Campaigns Manager of Debt Justice, said:

“These figures are a shocking indictment of the government and Ofgem’s failure to act on the energy debt crisis. Record energy debts are leaving millions trapped in arrears for a basic essential, bringing stress and hardship to households already struggling to get by. 

“Yet almost a year after Ofgem announced they were looking into a debt relief scheme, not a single household has seen their debts reduced. The government must act now and write off unpayable energy debt.” 

ENDS

[1] Data taken from Ofgem’s interactive charts on https://www.ofgem.gov.uk/data/debt-and-arrears-indicators which have recently been updated. Specifically, the headline figures use the chart from total financial value of domestic customer debt and arrears (existing for more than 91 days). Key figures:

Q4 2020 (pre-crisis): £1.45bn

Q1 2022 (pre-Ukraine invasion): £1.81bn

Q2 2024 (pre-General Election): £3.69bn

Q3 2024: £3.82bn

Q4 2024: £3.85bn

Q1 2025: £4.15bn

Q2 2025 (latest): £4.43bn

[2] The End Fuel Poverty Coalition is calling for urgent reform to tackle the energy debt crisis, including:

  • A Debt Relief Scheme with automatic eligibility for households on means-tested benefits and no arbitrary debt thresholds or forced customer contributions.
  • An end to punitive late fees, additional charges and rigid repayment plans that push people deeper into hardship.
  • Guaranteed protection for customers on prepayment meters, with relief available to those forced onto PPMs due to debt.
  • Longer-term action to cut bills and prevent debt recurring, including a national social tariff, fairer standing charges and pricing structures and a major programme of home energy efficiency upgrades and homegrown renewables.

Further energy firm profits set to be announced

Further energy firm profits will be announced this week as new Ministers are still to set out the measures that will be taken to keep households warm this winter.

Iberdrola (owners of Scottish Power), Equinor, Centrica (British Gas), EDF and Drax are all expected to post financial results this week.

A tracker that monitors the declared profits of firms ranging from energy producers through to the firms that control our energy grid as well as suppliers suggests that these five firms alone have profits running well into the hundreds of millions in recent years.

Warm This Winter spokesperson Fiona Waters said:

“Frankly it is just obscene. In fact it’s hard to grasp the mind boggling sums involved but it equates to global energy fat cat corporations making a billion pounds each week under the last government since the energy crisis started three years ago. 

“That is why we have to bring back fairness and introduce a proper tax on all companies profiteering in the energy sector while six million people in the UK are living in fuel poverty, facing a stark choice between heating and eating. 

“We welcome the new government’s pledge to prioritise lowering energy bills as part of the green energy transition, they have inherited a broken energy system but we must see urgent action to support struggling households through the next winter.”

In total, energy corporations have made nearly £427 billion in profits since the energy crisis according to the analysis of company reports to June this year.

A spokesperson for the End Fuel Poverty Coalition added: 

“These figures show that there is plenty of money in our broken energy system. But rather than this money being used to help people struggling in cold damp homes and with the record cost of energy, the cash is being used to line the pockets of energy firms.

“As households struggle in energy debt and even turn to illegal money lenders, new ministers must step in. We need to ensure the most vulnerable households are protected with a more comprehensive warm homes discount, action to bring down energy debt and the Treasury must draw a line in the sand to stop this profiteering.”

Tessa Khan, executive director of Uplift added:

“The UK’s high dependence on expensive gas is why millions are still struggling with unaffordable energy bills. Energy companies obviously want to lock us into oil and gas for years to come to keep the profits rolling in, but the only way to reduce bills is to insulate homes and switch to homegrown renewable energy. We need to see the government now deliver on its commitment to move us off oil and gas and onto a better, fairer energy system.”

The energy industry profit tracker will be updated again at the end of the summer.

ENDS

Data extracted from the Energy Firm Profits Tracker. EDF has claimed that since 2018, the firm has invested double what it has made back into Britain, investing £2 for every £1 it has made. In 2023 EDF spent £3.6bn strengthening the country’s energy security and boosting jobs, compared to £3.4bn profit from the UK business.