Centrica, the owner of British Gas, has reported its highest-ever first-half profits of nearly £1 billion, a significant turnaround after regulator Ofgem permitted the recoupment of costs from household bills. In the first half of 2023, the group achieved a staggering operating profit of £6.5 billion, a remarkable increase compared to the operating losses of £1.1 billion in the same period last year. Underlying operating profits rose from £1.3 billion to £2.1 billion, showcasing the extent of their profit growth.
The remarkable profit surge is largely attributed to a change in the energy watchdog's price cap, enabling British Gas to recover some costs associated with supplying energy to its 10 million customers during the energy crisis. The retail energy division, British Gas Energy, witnessed a remarkable increase in underlying earnings, soaring from £98 million in the previous year to an astonishing £969 million.
However, these historic profits have sparked concerns and anger among consumer groups and charities, as they coincide with record energy market prices that have pushed millions of people into a cost-of-living crisis.
Earlier this year, British Gas faced controversy when debt collectors, acting on the company's behalf, entered the homes of vulnerable customers to install prepayment meters, leading to an investigation by Ofgem.