Feb 15, 2024
British Gas sees profits increase 10-fold
British Gas has announced its profits for 2023 increased 10-fold to £750m. The supplier said the jump from £72m in 2022 was due to regulator Ofgem allowing it to recover losses of £500m it racked up in the aftermath of Russia's invasion of Ukraine. While oil and gas firms made record profits when energy prices spiked, suppliers that took on the customers of bust retailers made hefty losses. Centrica, British Gas's parent company, said its profits fell by 17% to £2.8bn. The energy giant, which extracts and generates fossil fuels, followed BP and Shell in posting reduced, albeit still large, profits for 2023 due to oil and gas prices falling back on the levels seen in 2022. Energy has also been the main driver in the rising cost of living in the UK. Centrica said its retail business, British Gas, which has 7.5 million customers, made £750m in profits as a result of being allowed by Ofgem, the energy regulator, to claw back £500m in losses. The losses were incurred due to British Gas, along with several other suppliers, taking on customers and honouring existing contracts when dozens of small energy providers went bust in 2021 when gas prices surged and made price promises to customers undeliverable.
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