Campaigners have stepped up efforts to increase taxes on energy companies in the Budget
Energy giants have made more than £125billion in profits from the UK in the past five years, according to analysis.
The figure includes around £40billion in the past two years alone, based on research by the End Fuel Poverty Coalition. It examined the accounts of 27 firms, ranging from energy producers through to network operators and suppliers. Many are heavily involved in the gas industry, while others make money from getting energy around the country.
Wholesale energy prices rose as the world emerged from pandemic lockdowns in 2021, and were then fuelled by Russia’s invasion of Ukraine. Household bills have jumped as a result, leading many people to ration their gas and electricity use and sending energy debts to record highs.
Energy regulator Ofgem is due to announce on Friday what the level of its price cap for millions of households will be from January 1. Campaigners are calling on Chancellor Rachel Reeves to announce a fresh windfall tax on energy firms in this month’s Budget.
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The analysis found oil giant BP had made £9.5billion profit from the UK since 2020, French owned EDF £8billion, and SSE £22.5billion.
Simon Francis, coordinator of the End Fuel Poverty Coalition, said: “Energy firms continue to post multi-billion pound profits on their UK operations while millions of households struggle to afford to heat their homes. The figures equate to £878 per household, per year in profit. At the same time, average annual energy bills have soared from £1,042 in 2020 to £1,755 today, after peaking even higher in early 2023.
“Even after the temporary windfall tax, oil and gas giants have benefited from exceptional earnings driven by global price spikes, which stands in stark contrast to record energy debt and record levels of fuel poverty.”
Faiza Shaheen, executive director at campaign group Tax Justice UK, said: “Energy companies’ billions in excess profits are extracted from the pain of millions struggling with the soaring costs of energy and essentials. Capitulating to industry lobbying and axing the windfall tax would be an unacceptable decision by the Chancellor, and a sign this government is on the side of the profiteers rather than the public. She must use the Budget to properly tax energy companies and big polluters, and invest in bringing down energy bills for ordinary people.”
Robert Palmer, deputy director at the environmental group Uplift, said: “It is scandalous that oil and gas companies raked in billions in recent years whilst millions of people in the UK still struggle with sky high energy bills. Worse, these huge profits aren’t going to support the UK’s energy workers, who are being laid off as the North Sea declines, they’re going to overseas shareholders.
“It’s clear this status quo of continuing to prop up the profiteering oil and gas industry with evermore generous public handouts can’t continue.”
EDF says that, since 2018, it has invested double what it has made back into Britain, investing £2 for every £1 it has made. It added that last year it spent £4.3billion on “strengthening energy security and boosting jobs”.
A spokesperson for SSE said: “SSE is exactly the kind of company you want in the UK – investing £33billion over the next five years, supporting more than 67,000 jobs directly and through its supply chains, paying the Living Wage, consistently investing more than it makes in profits, and the first FTSE 100 business to achieve the Fair Tax Mark recognising it for paying fair taxes in the right place, at the right time. On top of this, it is unlocking clean, secure, affordable energy in the UK and supporting economic growth.”
BP publishes an annual report about its impact on the UK economy. Citing analysis by Oxford Economics, it says that in 2024 it supported an estimated 75,000 jobs, spent £4.6billion with over 2,800 UK suppliers and contributed £11.6billion to the economy.
