UK Energy

Energy companies have allegedly accrued over £420 billion in profits since the beginning of the current energy crisis, according to a report by researchers affiliated with the End Fuel Poverty Coalition.

This analysis examined financial reports from various entities in the energy sector, including oil and gas generators, suppliers and energy neworks.

The End Fuel Poverty Coalition allege that approximately £30 billion of these profits come from the entities responsible for transmitting and distributing electricity and gas, known as “network costs,” which are covered by standing charges on consumers’ energy bills.

In recent years, there has been a significant increase in electricity standing charges, with a projected 147% rise starting 1st April.

This increase is driven by various fees, including 14 charges within each bill for network costs.

Gas standing charges have also risen by 15% since 2021.

Researchers estimate that the average household’s contribution to gas network costs has increased from £118.53 annually in 2021 to £163.69 as of April 1st, 2024, marking a significant 38% rise.

Simon Francis, Co ordinator of the End Fuel Poverty Coalition, commented: “As standing charges go up today, households will have to cut back on their energy use just to keep their bills the same.

“This means households continue to suffer as a few energy firms make billions in profits from running the electricity and gas networks.

“These numbers may look like fantastic amounts to shareholders, but the reality is that these profits have caused pain and suffering among people living in fuel poverty for the last few years.”