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Gloucestershire Business News

British Gas profits triple as bills soar

British Gas owner Centrica has posted huge profits, while customers struggle with rising bills.

Profits hit £3.3bn for 2022, more than three times the £948m it made in 2021, after oil and gas prices soared last year, as reported by the BBC.

Energy firms have seen record profits since oil and gas prices jumped after Russia invaded Ukraine a year ago.

The majority of Centrica's huge profits came from its nuclear and oil and gas business, rather than from the British Gas energy supply business. British Gas contributed £72m to the £3.3bn profit, which also included the impact of Centrica selling its Spirit Energy oil and gas business last year.

Centrica said British Gas's profits had actually gone down by 39% compared to 2021, largely because of "voluntary donations made to support customers" and the repayment of furlough funds paid during the pandemic.

The company said it paid about £1bn in tax relating to its 2022 profits, of which about £54m was paid as the windfall tax - Energy Profits Levy - introduced by the Government last year to help fund lower bills for households off the back of huge earnings by the energy companies.

Punchline said: "Even though British Gas made a relatively small contribution to Centrica's profits, earnings of this size will always leave a bitter taste while businesses and households struggle with escalating bills."

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