Energy giants have generated over £125 billion in profits on their UK operations since the energy crisis started according to an analysis of company reports.
Around £40bn has been made in profit in the UK by just 27 energy firms in the last two years, yet there are continued calls from energy industry lobbyists to axe the Windfall Tax in the next Budget.
Researchers working for the End Fuel Poverty Coalition examined the declared profits of firms ranging from energy producers (such as Equinor, Shell) through to the firms that control our energy grid (such as National Grid and UK Power Networks) as well as suppliers (such as British Gas) and energy trading firms (e.g. Vitol).
The total profits generated globally by the firms since 2020 stand at over half a trillion pounds, with over four-fifths (£466bn) generated by firms with extensive involvement in the gas industry.
This is despite the fact that the gas sector will no longer be able to meet heating demand using only domestically extracted gas by 2027 and as just 14% of the North Sea reserves are now commercially viable according to official statistics.
Further analysis shows that as households face a fifth winter of sky high energy bills, over £50bn of the profits over five years are generated by electricity and gas transmission and distribution firms.
At Campaign Collective, we coordinate the End Fuel Poverty Coalition to shine a light on the real impact of the energy crisis. Our work helps to ensure that the voices of those most affected – pensioners going to bed in coats, parents forced to choose between food and heating, and households trapped in unpayable debt – are heard in the national conversation.
We are campaigning for The Chancellor to resist pressure to provide a tax cut to the energy industry in the budget and ensure that the system captures excess industry profits fairly and directs revenues to protect vulnerable households and improve the energy efficiency of the nation’s coldest homes.