Energy giant Centrica, the parent company of British Gas, is facing intense scrutiny after reporting a staggering £1 billion in half-year profits. The surge comes as millions of UK households struggle with soaring energy bills, prompting regulator Ofgem to launch a formal review into the company's earnings.
Profits Soar Amid Consumer Struggles
Centrica's operating profits more than doubled to £1.34 billion in the first six months of 2023, up from £548 million during the same period last year. The British Gas retail arm alone contributed £969 million to these earnings - a nearly 900% increase compared to 2022.
Ofgem Steps In
The energy watchdog has announced it will examine whether British Gas has made 'reasonable' profits from its default tariff customers. "We're looking closely at whether these profits are proportionate," an Ofgem spokesperson stated.
Public Outrage Grows
The profit announcement has sparked widespread anger among consumer groups and politicians. "These figures are morally indefensible when families are choosing between heating and eating," said Holly Williams from the Independent.
- British Gas profits up 889% year-on-year
- Average household energy bills remain near record highs
- Government support schemes ended in April
Company Defends Performance
Centrica CEO Chris O'Shea defended the results, stating: "Our performance reflects improved operational execution and the volatile commodity price environment." The company has pledged to invest £4 billion in UK energy security by 2028.
What Comes Next?
Ofgem's review could lead to changes in how energy profits are calculated and regulated. Meanwhile, campaigners are calling for a tougher windfall tax on energy companies to help struggling households.
