Analysis reveals that energy companies have accumulated over £125 billion in profits from the UK over the past five years. Within the last two years alone, approximately £40 billion has been generated, as reported by the End Fuel Poverty Coalition. The research scrutinized the financial records of 27 firms, encompassing energy producers, network operators, and suppliers, with many heavily vested in the gas sector. Rising wholesale energy prices post-pandemic lockdowns in 2021, exacerbated by Russia’s incursion into Ukraine, have resulted in escalated household bills. This surge has prompted households to ration gas and electricity usage, leading to unprecedented energy debts.
Ahead of Ofgem’s impending announcement on the household price cap for January 1, campaigners urge Chancellor Rachel Reeves to consider implementing a windfall tax on energy companies in the upcoming Budget. Notably, the study disclosed that BP amassed £9.5 billion in profits since 2020, EDF, a French-owned entity, garnered £8 billion, and SSE accumulated £22.5 billion.
Simon Francis, coordinator of the End Fuel Poverty Coalition, criticized the disparity between energy firms’ substantial profits in the UK and the escalating struggle of millions of households to afford adequate heating. The profit influx equates to £878 per household annually, while average energy bills have skyrocketed from £1,042 in 2020 to £1,755 presently, peaking higher in early 2023.
Faiza Shaheen, executive director at Tax Justice UK, condemned the excessive profits of energy companies at the expense of consumers grappling with soaring energy costs. She emphasized the necessity for the government to impose proper taxes on energy corporations and prioritize reducing energy expenses for the general public. Robert Palmer, deputy director at Uplift, deplored the situation where oil and gas companies reaped substantial profits while many UK citizens faced exorbitant energy bills and dwindling job opportunities.
EDF asserts that it has reinvested double the profits back into Britain since 2018, emphasizing its commitment to bolstering energy security and job creation. Similarly, SSE highlighted its extensive investment in the UK economy, supporting numerous jobs, paying fair taxes, and contributing to sustainable energy solutions.
BP’s annual report underscores its economic impact on the UK, citing figures from Oxford Economics that indicate substantial job support, supplier spending, and overall contribution to the economy. The public discourse intensifies as the government faces mounting pressure to address the profound disparity between energy company profits and the financial burdens faced by consumers.
At Reach and across our entities we and our partners use information collected through cookies and other identifiers from your device to improve experience on our site, analyse how it is used and to show personalised advertising. You can opt out of the sale or sharing of your data, at any time clicking the “Do Not Sell or Share my Data” button at the bottom of the webpage. Please note that your preferences are browser specific. Use of our website and any of our services represents your acceptance of the use of cookies and consent to the practices described in our Privacy Notice and Terms and Conditions.
