Fury as British Gas profits soar by 900% to £1billion as cash-strapped Brits struggle to pay energy bills

BUMPER profits made by British Gas sparked an outcry last night — with millions of cash-strapped households struggling to pay bills in the cost of living crisis.

Profits at the household arm of the UK’s biggest energy supplier leapt 900 per cent from £98million to £969million for just six months.

It followed regulator Ofgem allowing firms to claw back cash from customers following the pandemic and Russia’s invasion of Ukraine.

And it saw British Gas parent company Centrica’s total half-year profits hit £2.1billion.

Simon Francis, co-ordinator of the End Fuel Poverty Coalition, said 1.2 million households were disconnected in the first three months of this year.

He stressed: “These profits are a further sign of Britain’s broken energy system.

“When household energy debt is spiralling to record levels and energy bills remain double what they were a few years ago, the profits will be greeted with disbelief by those struggling through the crisis.”

Heidi Chow, at Debt Justice, said: “Obscene profits have been made at the expense of millions of UK households that have been plunged into debt and arrears because of record energy prices.”

Labour’s Ed Miliband said energy firms were bringing in “unearned, unexpected profits”.

Centrica boss Chris O’Shea admitted the business was starting to see an increase in customer arrears and people cancelling their direct debits.

Competition rules prevent energy companies from using profits to subsidise bills, but he said British Gas had provided “more support for customers than all of our competitors combined”.

He added that it would hand an extra £50million to struggling customers. But critics pointed out that at the same time it was also giving investors a sweeter dividend and transferring £450million via a share buyback.