Energy firms have seen record earnings recently - but many of us have seen record energy bill rises.
The boss of British Gas owner Centrica has refused to be drawn on whether he will take a bonus worth up to £1.6m after the company posted huge profits.
Centrica's bumper figures also come after British Gas was criticised over its use of debt agents to force-fit prepayment meters in the homes of vulnerable customers. Mr O'Shea has previously turned down a £1.1m bonus in 2021 due to "hardships" faced by customers. Centrica's annual report for that year also said he did not take a bonus in 2020 and 2019 because of the pandemic.
Most of Centrica's bumper profits came from its nuclear and oil and gas business, rather than from the British Gas energy supply business, which contributed just £72m of the £3.3bn profit. The sale of its Spirit Energy oil and gas business in May also boosted the figures.
The government's windfall tax only applies to profits made from extracting UK oil and gas. The current rate is 35%, but oil and gas firms pay an additional 30% in corporation tax and a supplementary 10% rate, taking the total rate to 75%. Competition rules prevent Centrica from selling the energy it produces more cheaply to its own retail customers than others, so what does it do with its embarrassment of riches?
The revelations resulted in Ofgem, the energy watchdog, asking all suppliers to suspend forced prepayment meter installations. Courts in England and Wales also halted applications from firms to install them.Centrica said it was "extremely disappointed by the allegations" surrounding one of its contractors, Avarto Financial Solutions, and added it was "completing a thorough independent investigation".
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