• Top 20 energy firms have amassed £457bn in profits since the start of the energy crisis.
• Some companies, like OVO Energy and Octopus Energy, reported significant losses, showing uneven impact across the sector.
• Urgent calls for renewable energy investment and insulation to combat high bills and reduce reliance on fossil fuels.

The energy crisis, exacerbated by Russia’s invasion of Ukraine, has led to soaring household bills and massive profits for some of the world’s largest energy companies. A new report by the End Fuel Poverty Coalition reveals that 20 leading energy firms have collectively posted £457bn in profits since the crisis began in 2020.

This year alone, these firms have reported profits totaling £61bn. Caroline Simpson, a spokesperson for the End Fuel Poverty Coalition, criticized the sector’s “obscene level of profiteering,” highlighting the stark disparity between companies in the industry.

While major oil and gas companies like Equinor, Shell, and BP have reported significant profits—£129.2bn, £84.5bn, and £44.5bn respectively—since 2020, not all energy companies have fared well. Leading energy suppliers such as OVO Energy and Octopus Energy have posted losses of £1.4bn and £110m, respectively. This contrast underscores the uneven financial impact of the crisis across different types of energy firms.

Energy generation companies have also seen substantial profits. EDF, Iberdrola (owner of Scottish Power), and EON have amassed £75.5bn, £47.7bn, and £30.1bn in profits, respectively, since the crisis started.

As the winter approaches, the financial strain on consumers is set to worsen. Ofgem, the UK energy regulator, recently announced a 10% increase in the energy price cap starting October 1. This hike could allow energy suppliers to make an additional £1.2bn over the next 12 months, equivalent to an 11% profit increase on every household with a standard variable tariff.

Caroline Simpson commented on the situation, stating, “There is clearly an obscene level of profiteering going on, and now energy suppliers have been given the green light to make a further £1.2bn, which is enough to cover the Winter Fuel Payment allowance for all pensioners.“

Related Article: Hygreen Energy and Coxabengoa Forge Strategic Alliance to Boost Europe’s Green Hydrogen Market

She emphasized the need for urgent action, calling on the government and energy firms to invest in renewable energy and expand insulation programs. “This is the only way to break the vicious cycle of bill shocks and reliance on volatile fossil fuels,” Simpson added.

The report highlights the growing divide between profitable and struggling companies within the energy sector and underscores the urgent need for systemic changes to protect consumers and promote sustainability.