– The surge in profits of British Gas surprised many especially when at the same time energy companies reported a major decline in their profits compared to last year and households energy bills remain elevated.
– British Gas is a distributor of energy, unlike companies like Shell which are involved in the entire supply chain of oil and gas.
– The increase in the gas price cap that Ofgem, the UK’s regulator for electricity and downstream gas markets, introduced last year allowed British Gas to charge higher energy prices especially following the tough period that the company faced during the Covid-19 pandemic and subsequent years, when several energy providers collapsed in the UK.
– The company was subsequently allowed to recover some of the losses it has incurred during the difficult period and which has translated into a surge in profits.
“The race to tax fossil fuel profits“, Dr Carole Nakhle, Jun 2023
“Saudi Aramco in a strong financial position despite a drop in Q2 profits“, Dr Carole Nakhle, Aug 2023
“Profits of energy companies drop in the first half of 2023“, Dr Carole Nakhle, Aug 2023
“Shell’s 2022 Third Quarter Profits“, Dr Carole Nakhle, Oct 2022