Energy giants have accumulated more than £125 billion in profits from UK operations during the past five years, according to exclusive analysis that has intensified calls for a new windfall tax.
Soaring Profits Amidst Household Struggles
Research conducted by the End Fuel Poverty Coalition examined accounts from 27 energy firms, including producers, network operators and suppliers. The investigation revealed approximately £40 billion was generated in just the last two years, with many companies heavily involved in the gas industry.
Simon Francis, coordinator of the End Fuel Poverty Coalition, stated: "Energy firms continue to post multi-billion pound profits on their UK operations while millions of households struggle to afford to heat their homes."
The analysis found these profits equate to £878 per household annually, creating stark contrast with average energy bills that have surged from £1,042 in 2020 to £1,755 today.
Industry Leaders and Their Defence
The research identified specific company profits since 2020:
- BP: £9.5 billion
- EDF: £8 billion
- SSE: £22.5 billion
Energy regulator Ofgem is scheduled to announce the new price cap level for millions of households from January 1 this Friday, adding urgency to the debate.
Campaigners are demanding Chancellor Rachel Reeves implement a fresh windfall tax on energy firms in this month's Budget, arguing that even after temporary measures, oil and gas giants have benefited from exceptional earnings.
Campaigners Demand Government Action
Faiza Shaheen, executive director at Tax Justice UK, emphasised: "Energy companies' billions in excess profits are extracted from the pain of millions struggling with soaring costs. Capitulating to industry lobbying and axing the windfall tax would be an unacceptable decision."
Robert Palmer from environmental group Uplift added: "It is scandalous that oil and gas companies raked in billions whilst millions in the UK struggle with sky high bills. These huge profits are going to overseas shareholders rather than supporting UK energy workers."
The companies have defended their records. EDF stated it has invested double what it made back into Britain since 2018, while SSE highlighted its £33 billion investment plan over the next five years and commitment to supporting 67,000 jobs.
BP cited analysis showing it supported 75,000 jobs and contributed £11.6 billion to the UK economy in 2024 alone.
