The owner of British Gas, Centrica, has reported record annual profits of £3.3bn, tripled from the previous year, amid the ongoing energy crisis. Chief executive Chris O'Shea declined to say whether he would waive his potential £1.6m bonus, having waived a similar bonus last year.
O'Shea, who could receive a total package exceeding £3m, said it was 'too early to have a conversation' about his bonus during a call on Thursday. He had previously waived a £1.1m bonus, citing customer hardship. Campaigners, including Simon Francis from the End Fuel Poverty Coalition, urged him to 'look at his conscience', while Unite's Sharon Graham described the profits as 'obscene'.
Centrica will hand £750m to shareholders through dividends and share buybacks, including £200m in dividends and £300m in a new buyback, on top of a previously announced £250m buyback. The company said it paid £51m in UK windfall taxes since the levy was introduced last year, a fraction of the shareholder returns.
British Gas faced criticism after revelations that debt agents forced vulnerable customers onto prepayment meters. The company suspended court warrants for such installations, and all suppliers were temporarily banned from the practice. Centrica said it was 'extremely disappointed' by allegations surrounding one of its third-party contractors.
The profits were driven by soaring earnings in North Sea oil and gas and nuclear power divisions, linked to the war in Ukraine. Centrica expects to pay £2.5bn in windfall taxes between 2023 and 2028. Labour has called for an expanded tax, and the TUC's Paul Nowak demanded public ownership of energy firms.
Profits at British Gas's energy supply arm fell 39% to £72m, while Centrica said it spent £75m supporting household customers. O'Shea defended the spending, saying it surpassed the division's profit.
