Energy firms posted over £23.1 billion in profit in 2025 as UK households brace for higher bills this summer. This is up from £22.7 billion in 2024, according to new analysis by the End Fuel Poverty Coalition, but does not account for returns generated by the Iran war.
Oil Giants Report Exceptional Performance
Oil giant BP has already stated it expects to report an “exceptional” performance in the first three months of the year, while Shell anticipates “significantly higher” profits. BP will post its next results on Tuesday, with Shell following on May 7. The price of oil soared to almost $120 a barrel at one stage following the closure of the Strait of Hormuz.
Households Face Higher Bills from July
Higher oil prices mean UK homes are now set to face soaring energy bills from this July. Analysts at Cornwall Insight forecast the price cap could rise to £1,837 a year. Ofgem will announce its July price cap level by May 27. The price cap is currently set at £1,641 a year. Households on heating oil and LPG have already seen energy costs soar, prompting the Government to provide a support package.
Criticism of Energy System
Simon Francis of 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, added: “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.”
Profit Analysis
Researchers working for the End Fuel Poverty Coalition examined the declared profits of 30 energy firms, including producers, grid operators and suppliers. The figures are a slight decrease from the £27.6 billion posted in 2023 during the height of the Ukraine war.
