British Gas has seen its profits rise to £751 million from £72 million for the financial year sparking calls for public ownership.
Revealed via Centrica, parent company of British Gas and Bord Gáis Energy, annual results ending 31 December 2023, the increase represents a staggering year-on-year (YoY) increase of nearly 943% for the energy supplier.
Centrica attributed the increase primarily due to the one-off industry-wide £500 million recovery established by energy regulator Ofgem in the first half of 2023. This was via the energy price cap, which enabled the energy supplier to recover debts that they could not recover from customers due to the energy crisis.
It is worth noting that oil and gas giants Shell and BP have both released their financial results in the past few weeks, raising the question as to whether enough is being done to prevent companies from profiteering off the energy crisis and fossil fuels, particularly when the recent COP28 summit called for greater environmental awareness.
In response of the results, Unite, a trade union, has called for the public ownership of Centrica due to its “astonishingly high profits off the back of exorbitant energy bills”.
Unite general secretary Sharon Graham said: “British Gas owner Centrica is still raking in astonishingly high profits off the back of exorbitant energy bills that are nearly double what they were three years ago.
“There is no point beating around the bush: The only way to stop households and businesses being ripped off by the profiteers in our energy supply chain is public ownership.
“It is an absolutely affordable option that would protect the national interest. Our politicians need to decide whose side they are on and make the right choices.”
Chris O’Shea, CEO of Centrica, also stated that the company’s strong performance from 2023 has continued into 2024. He said: “We are pleased to report that this strong underlying operational performance has continued into early 2024. As you would expect, sharply lower commodity prices and reduced volatility will naturally lower earnings in comparison to 2023 as we return to a more normalised environment.
“Our performance over the past year has reinforced our confidence in delivering against our medium-term sustainable profit ambitions and continuing to create value for shareholders.”
Centrica to focus on green-focused technologies
It is worth noting that Centrica has previously reiterated its ambition to focus on green investment with £4 billion touted to be allocated for this until 2028. This would see between £600-£800 million invested per year.
At the time, the company also highlighted that the investment would go towards “customer activities to cement our leading market positions and unique workforce. We will invest in our own Smart Meter Asset provision and we will consider further opportunities such as financing or leasing heat systems to households”.
