Centrica boss defends rise in profits to £3.3bn

THE boss of British Gas owner Centrica has defended the massive spike in his company’s profits amid heavy criticism, saying it will help the company keep bills lower for customers and invest in the green transition.

The business revealed a more than tripling of adjusted operating profit yesterday, hitting £3.3bn last year compared with £948m in 2021.

The profits sparked anger from campaigners and politicians who say companies are benefiting from the high energy prices that are forcing people to choose between heating their homes or feeding their families.

But chief executive Chris O’Shea said he would use the profits to help customers and the environment.

The company also announced a major handout to shareholders.

“Profits at Centrica have a purpose, and that purpose is net zero, that purpose is helping customers having lower bills going forward,” he told reporters on a call.

The profit overwhelmingly came from Centrica’s nuclear power plants and its energy trading arms.

Profits at British Gas Energy, which serves 7.5 million households, dropped by 39% to £72m.

Trades Union Congress general secretary Paul Nowak said the energy market in Britain is broken.

“While millions of families struggle to heat their homes, firms like Centrica are raking in monster profits,” he said.

“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.”

Mr O’Shea again apologised for the behaviour of subcontractors who had broken into people’s homes to force-fit energy meters.

The scandal sparked an urgent inquiry by regulator Ofgem and has seen most energy companies pause the practice.

The chief executive said it is vital to help people afford their energy, food and other bills following the revelations.

“I think what we need to do is to have a proper debate on what we want to do as a society to support those who can’t pay their bills,” he said.

He said the exact way forward would be an issue for the UK Government, but added: “In the past, the old DSS (Department for Social Security) would make direct payments. If you couldn’t afford your rent, they would pay for your rent. And something to really give direct help to customers, I think is probably the easiest thing.”

Mel Evans, a campaigner at Greenpeace, called for the energy windfall taxes to be expanded to energy trading.

Centrica also made £245m in profit from its North Sea drilling operations, up from £68m the year before.

The earnings haul for last year has stoked anger over a run of massive profits notched up in the sector and reinforced calls for greater windfall taxes.

Trade union Unite hit out at “rampaging energy profiteering” and Centrica’s treatment of customers.

Unite general secretary Sharon Graham said: “These energy companies are showing us everything that is wrong with the UK’s broken economy.”

Centrica said it paid nearly £1bn in tax relating to 2022 profits.