The scandal-hit owner of British Gas has reported record profits of £3.3bn boosted by soaring wholesale gas prices after Russia’s invasion of Ukraine and as many households in Britain struggle with the cost of living.
Centrica’s bumper profits are likely to anger campaigners calling for tougher windfall taxes, lower bills and better treatment of vulnerable customers against the backdrop of the prepayment meter scandal.
The company’s profits for 2022 more than tripled compared with the £948m in 2021, aided by soaring profits in its North Sea oil and gas division. They also surpass the company’s previous profit high of £2.7bn, recorded in 2012.
British Gas faced widespread criticism earlier this month when it emerged that debt agents working for Britain’s largest energy supplier had ignored customers’ vulnerabilities and forced them on to prepayment meters to recover debts.
The company suspended the use of court warrants to install prepayment meters and the government and Great Britain’s energy regulator, Ofgem, later ordered all energy suppliers to pause the tactic.
Centrica’s North Sea profits are subject to a windfall tax on North Sea oil and gas operators while it also has a 20% stake in Britain’s nuclear power stations, which are subject to the electricity generator levy implemented by the chancellor, Jeremy Hunt, to capture windfall gains.
However, Labour has called for the oil and gas windfall tax to be expanded to capture a greater proportion of profits.
Calls for the windfall tax on oil and gas companies have increased in recent weeks after oil majors including Britain’s BP and Shell posted record profits.
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Labour has called for an investment allowance which cuts tax for oil and gas operators’ spending on increasing production to be scrapped.
