British Gas owner Centrica has seen its profits soar to more than £3 billion for 2022 amid rocketing energy prices that have sparked a cost-of-living crisis. The energy giant reported underlying operating profits of £3.3 billion against profits of £948 million in 2021.
Stripping out its Spirit Energy businesses that were sold, underlying earnings for the group jumped to £2.8 billion from £392 million the previous year. The earnings haul for last year comes as anger grows over a run of massive profits notched up in the sector and mounting calls for greater windfall taxes.
Centrica said it made operating profits of £72 million at its British Gas retail division, British Gas Energy, but this was down 39% on the year before. Its figures come amid a furore over Centrica’s use of debt collectors to install expensive pre-payment meters by force in the homes of vulnerable cash-strapped customers.
The scandal sparked an urgent inquiry by regulator Ofgem and has seen Centrica banned from force-fitting pre-payment meters. A Centrica spokesman said: “Our performance in 2022 demonstrates the benefits of our balanced portfolio and our strong balance sheet. The energy crisis and cost of living pressures have created a challenging environment for customers and communities, but we have been able to provide much needed stability and support.
"We invested £75m in supporting our energy customers in 2022, which was greater than the £8 post-tax profit per customer earned by British Gas Energy. Whilst customers may see some relief given recent easing of prices, it remains clear that some will continue to need help and we will do what we can to support them in the year ahead."
Unite union general secretary Sharon Graham said: “British Gas owner Centrica has been coining it in from our massive energy bills while sending bailiffs to prey on vulnerable consumers the length and breadth of the country.
“These energy companies are showing us everything that is wrong with the UK’s broken economy.
“Rishi Sunak should get a grip – pull the plug on rampaging energy profiteering, impose a meaningful, tough windfall tax and give the NHS a pay rise with the proceeds.”
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Shadow climate secretary Ed Miliband hit out at the Government as he promised that Labour would introduce a “proper” windfall tax on energy companies.
It comes as British Gas owner Centrica reported annual underlying operating profits soaring to £2.8 billion from £392 million in 2021 after its sold Spirit Energy business was stripped out.
“It cannot be right that, as oil and gas giants rake in the windfalls of war, Rishi Sunak’s Conservatives refuse to implement a proper windfall tax that would make them pay their fair share,” Mr Miliband tweeted.
“Labour would use a real windfall tax to stop the energy price cap going up in April.”
Liberal Democrat leader Sir Ed Davey said: “This is a betrayal for British Gas customers across the country who are struggling to keep their heating on.
“Once again the Government’s failure to implement a proper windfall tax is allowing oil and gas businesses to make billions off the back of hardworking families.
“What makes this worse is that thousands of British Gas families have had their homes broken into and prepayments forcibly installed because they could no longer afford to pay their sky high bills.
“This cannot continue. Liberal Democrats are calling for the Conservatives to finally bring in a proper Windfall Tax and the cancellation of Government plans to increase energy bills by £500 in April.”
Responding to the latest Centrica profits, TUC general secretary Paul Nowak said that the British energy market is “broken”.
“While millions of families struggle to heat their homes, firms like Centrica are raking in monster profits.
“It is time to bring energy retail companies into public ownership.
“Privatisation has been a disaster for hard-pressed households. The only real winners have been shareholders who have creamed off hundreds of millions in dividends.
“That’s why the TUC is calling for the government to set up a public energy company to lower bills.”
Sana Yusuf, a climate campaigner at Friends of the Earth, called on the Government to take tougher action on a windfall tax after the latest Centrica profits.
“Another set of bumper profits from one of the companies fuelling the energy and climate crises will no doubt spark further outrage as millions of people struggle to pay their bills and face a drop in Government support from April.
“The new Energy Security And Net Zero Secretary needs to step up and back growing calls for a tougher windfall tax on the excessive profits of fossil fuel companies like Centrica to help fund the investment in insulation and homegrown renewables needed to bring down bills and cut emissions.”
