British Gas Energy has seen a 44% jump in profit despite despite a squeeze on the energy sector which has put many of its rivals out of business
(Picture: PA Media)The boss of British Gas-owner Centrica is waiving his £1.1 million bonus this year as household heating bills soar.
Centrica CEO Chris O’Shea will take just his £775,000 salary for the year, the company said today. His decision came as gas and electricity prices are set to soar by more than 50% for 22 million households across the UK in April.
Centrica said British Gas Energy saw a 44% jump in profits to £118 million last year. The company said hedging contracts helped it navigate soaring gas prices last year.
With energy giants facing criticism for profiting from the cost-of-living crisis, Centrica plans to return £27 million of furlough cash.
The company hit out at lax regulation which saw around 30 suppliers go to the wall during autumn’s energy crisis. British Gas was forced to take on 700,000 new customers last year under so-called “supplier of last resort” rules.
Centrica called for “stronger prudential regulation” to make sure gas and electricity suppliers are “fit and proper, have adequate capital and monitored risk management procedures”.
O’Shea said: “Our strong balance sheet and responsible business model has allowed us to ensure continued supply for customers whose suppliers have ceased trading and offer additional help to those most vulnerable through the ongoing energy crisis.”
Investors were left in the cold as Centrica kept its dividend “on pause” despite smashing full-year forecasts by posting a £948 million group profit for 2021.
Laura Hoy at Hargreaves Lansdown said: “The group’s restructuring is all but complete, and the cost savings went a long way in offsetting volatility and weakness in some parts of the business.
“Profits at British Gas Service & Solutions were hurt as customers swapped to lower-priced products to temper the impact of inflation and Covid-related costs offset hard-earned efficiency improvements. The latter is likely to dissipate, but the former could be an ongoing trend.”
Shares fell as much as 4.5% on a volatile morning for the FTSE 250, and were down 2.9p to 72.86p.
