In the first half of 2023, British Gas revealed record profits of approximately $1 billion.
A ‘another symptom of the flawed energy system’ in the UK, according to critics, was the owner of the energy behemoth Centrica nearly doubling its profit to £2.1 billion.
At its gas and electricity delivery division, underlying earnings increased by 889% to £969 million in the six months ending June 30 from £98 million a year earlier.
In the first half of the year, Ofgem’s price cap was responsible for around half of the profit.
The shift, according to Centrica, allowed them to recover losses of about £500 million from a year earlier.
Consumer advocacy organisations that defend suffering households from unfair business practises are incensed by the company’s record revenues.
The gains are yet another indicator of Britain’s dysfunctional energy system, according to Simon Francis, coordinator of the End Fuel Poverty Coalition.
‘At a time when household energy debt is reaching record highs and energy costs are still double what they were a few years ago, the profits posted will be met with scepticism by people battling to survive the crisis.
Questions about how these profits were made will undoubtedly arise, but the truth is that energy companies are competing on a level playing field that has been established by the government.
People will understandably inquire as to what the government is doing to stop these profits and repair our damaged energy infrastructure.
Amid volatility in the world’s energy markets, Centrica more than tripled its adjusted operating profit last year, which eventually reached £3.3 billion.