The Press and Journal (Inverness, Highlands, and Islands)
Outrage at £3bn profit mountain
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 £3.3 billion last year compared with £948 million in 2021.
The profits sparked anger from campaigners and politicians who say companies are benefiting from the same 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.”
The company also raked in £1.4bn of profit from its trading arm, which speculates on energy prices, a stunning 1,900% increase from the year before.
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.