The owner of British Gas has reported staggering profits of £3.3 billion for 2023, sparking widespread criticism as households across Britain continue to grapple with exorbitant energy bills.
Centrica, the parent company, saw its underlying earnings more than triple from the previous year, with the British Gas services division alone generating £799 million in adjusted operating profit - a remarkable 140% increase.
CEO Defends 'Sustainable' Performance
Chief Executive Chris O'Shea defended the company's financial results, stating they represented a "more sustainable performance" after years of instability in the energy sector. However, he acknowledged the figures would be "difficult to hear" for many customers.
"People can see the profits we've made," O'Shea told journalists. "They can see that the profits in British Gas Services and British Gas Energy have increased."
Ofgem's Controversial Role
The energy regulator Ofgem finds itself under increasing pressure as it prepares to lower the price cap in April while simultaneously proposing adjustments that could add approximately £16 to annual bills to address customer debt.
This move comes despite the regulator previously acknowledging that energy companies had been making "reasonable" profits, a statement that has drawn criticism from consumer advocacy groups.
Political and Public Backlash
The enormous profits have ignited political fury, with Labour's shadow climate secretary Ed Miliband describing the situation as "the sorry tale of an energy system that is not working for families or our country."
Consumer champion Martin Lewis didn't mince words, calling the profits "obscene" given the ongoing cost of living crisis affecting millions of British households.
What This Means for Billpayers
While the energy price cap is expected to fall to around £1,600 annually for a typical household from April, bills will remain significantly higher than pre-crisis levels. Many families continue to face difficult choices between heating and eating.
The situation highlights the ongoing tension between energy company profitability and consumer affordability in a market still reeling from unprecedented wholesale price shocks.
