British Gas owner Centrica has posted huge profits after energy prices soared last year. British Gas owner Centrica sees profits soar as energy bills rise.
Centrica’s full-year profits hit £3.3bn for 2022, more than triple the £948m it made the year before.
Energy firms have seen record earnings since oil and gas prices jumped following Russia’s invasion of Ukraine.
The figures come after British Gas was criticized over its use of debt agents to force-fit prepayment meters in the homes of vulnerable customers.
Pressure has been heaped on energy firms to pay more tax in the UK as a result of their large profit margins, with households being hit with higher electricity and gas bills.
The majority of Centrica’s bumper profits came from its nuclear and oil and gas business, rather than from the British Gas energy supply business, which contributed £72m out of the £3.3bn profit. The overall profit figure also included the impact of selling its Spirit Energy oil and gas business in May.
Centrica said British Gas Energy profits had decreased by 39% compared to 2021’s levels, which was largely down to “voluntary donations made to support customers” and the repayment of furlough funds it received during the height of Covid.
The company said it paid about £1bn in tax relating to its 2022 profits. Some of that was as a result of the windfall tax – called the Energy Profits Levy – which was introduced by the government last year to recoup some of the “extraordinary” earnings made by firms and help fund lower gas and electricity bills for households.
But Centrica said it would extend its share buyback scheme, the money it returns to its shareholders, to £300m and also pay out a full-year dividend of 3p a share. British Gas owner Centrica sees profits soar as energy bills rise.
