Centrica, the company that owns British Gas, has reported record profits for the 2022 financial year.
Operating profits of £3.3bn were recorded at the company, up from £948m in 2021, and surpassing the firm’s previous highest ever yearly profit of £2.7bn, posted in 2012.
The oil and gas producer has been helped by high energy prices. Wholesale gas costs had risen to new highs in the wake of the war in Ukraine.
Supplies have been limited since Russia’s invasion and the subsequent sanctions imposed on the country.
As political pressure rose to tackle all time high profits, Centrica became subject to the 45% windfall tax on electricity generators.
The government estimated that its windfall tax will raise £14bn in 2023.
However, Centrica’s record-breaking figures have triggered renewed calls for tougher taxes on bumper profits for energy providers.
British Gas gains customers but profits drop
Despite Centrica’s announcement, the financial performance of British Gas itself was not as strong as its parent company.
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Adjusted operating profit decreased to £72m in 2022 from £118m 2021 – a 39% decline.
At the same time the company had an increase in its number of residential customers. There were 7.5 million customers, up 4% from the previous year.
But because of Centrica’s wider performance, payments to shareholders in the company are to rise to 3p per share.
Dividend payments of 1p per share were restored in July after a pandemic-era pause and have now risen by 2p, upping the full-year payment.
More shares are to be bought from investors. The existing £250m share buyback programme has been expanded by an additional £300m, meaning Centrica will own 10% more of all shares currently issued.
Centrica paid £1bn in tax during the year, the accounts showed.
Operating profit rose to £724m from a loss of £38m in 2021, which the company said reflected “strong generation volumes and higher achieved prices”.
Centrica’s figures were released on Thursday following a period of public pressure on the firm.
British Gas came under intense criticism recently after an investigation revealed debt collectors working on behalf of the company forced their way into homes of vulnerable customers, including people with disabilities.
Electricity regulator Ofgemsaid on Wednesday that the end of forced installation of energy prepayment meters only extends until the end of March.
Centrica’s annual report attempted to address the issue, by saying protecting vulnerable customers is a priority.
The firm has committed to donate 10% of both British Gas Energy’s and Irish operator Bord Gáis’s adjusted operating profits “to help until the current crisis is over”.
“Therefore, we were extremely disappointed by the allegations surrounding one of our third-party contractors and their approach to pre-payment customers. We immediately took action to address this and are completing a thorough independent investigation,” the company said in the results.
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The boss of Centrica, owner of British Gas, admitted the company ‘got it wrong’ on prepayment meters
But disability equality charity Scope said disabled people are facing devastating situations because they can’t afford enough energy.
“It’s obscene that energy companies continue to make massive profits,” Tom Marsland, the policy manager at the charity, said.
“Life costs a lot more when you’re disabled. We’re being inundated with heart-breaking calls from disabled people who haven’t eaten for days, who can’t afford energy to charge wheelchairs and stairlifts, but are still racking up huge energy debts.”
The record profits have also been criticised by Friends of the Environment who described Centrica as “one of the companies fuelling the energy and climate crises”.
Windfall taxes should be “tougher”, a campaigner with the group said.
“The new Energy Security and Net Zero secretary needs to step up and back growing calls for a tougher windfall tax on the excessive profits of fossil fuel companies like Centrica to help fund the investment in insulation and homegrown renewables needed to bring down bills and cut emissions,” Sana Yusuf said.
Criticism also came from Labour. Ed Miliband, the shadow climate and net zero secretary, said: “It cannot be right that, as oil and gas giants rake in the windfalls of war, Rishi Sunak’s Conservatives refuse to implement a proper windfall tax that would make them pay their fair share.”
Foreign Secretary David Lammy confirmed the government had summoned Andrey Kelin in response.
Mr Kelin was seen arriving at the Foreign Office building in Whitehall today.
Image: Russian ambassador to the UK Andrey Kelin arrives at the Foreign Office building in Whitehall
Mr Lammy posted on X: “Putin’s strikes last night killed civilians, destroyed homes and damaged buildings, including the British Council and EU Delegation in Kyiv.
“We have summoned the Russian Ambassador. The killing and destruction must stop.”
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The British Council’s chief executive, Scott McDonald, said their guard for the building was injured but “stable”.
“At the insistence of my amazing colleagues, we will continue operations in Ukraine today wherever possible,” he said.
“Their resilience is awe-inspiring, and I am deeply thankful they are all safe.”
Earlier, Sir Keir Starmer said: “My thoughts are with all those affected by the senseless Russian strikes on Kyiv, which have damaged the British Council building.
“Putin is killing children and civilians, and sabotaging hopes of peace. This bloodshed must end.”
The British Council is an arms-length body from the government, and says its mission is to “support peace and prosperity by building connections, understanding and trust between people in the UK and countries worldwide”.
It facilitates schemes like working, living and learning abroad for British people.
Most of its funding comes from the fees it charges people for its services, but it does also get funding from the Foreign Commonwealth and Development Office (FCDO).
As well as the attack on the British Council building, Russia also targeted the EU delegation building in the Ukrainian capital overnight.
Ursula von der Leyen, the president of the European Commission, told reporters two missiles hit within 50 metres of the site in 20 seconds.
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Devastation in Kyiv after deadly Russian attack
And Kaja Kallas, the EU’s foreign policy chief, said the bloc was also summoning Russia’s ambassador following the strike.
“No diplomatic mission should ever be a target,” she said.
The attacks came as part of wider strikes on Kyiv, which destroyed homes and buildings and killed at least 15 people and injured 38, according to Ukrainian officials.
Russia has said it targeted military sites and air bases in its large overnight strike on Ukraine – and that it is still interested in negotiations to meet its aims.
“The special military operation continues,” he said, referring to Russia’s full-scale invasion of Ukraine, which it launched in February 2022.
“You see that strikes on Russian infrastructure facilities are also continuing, and often Russian civilian infrastructure is targeted by the Kyiv regime.”
He added: “At the same time, Russia will maintain its interest in continuing the negotiation process in order to achieve the goals we face through political and diplomatic means.”
Russia’s latest attack on Ukraine has been widely condemned, with Germany’s foreign minister Johann Wadephul saying there must be “consequences”.
“Last night we once again experienced in a terrible way how Russia attacked and bombed Kyiv, civilians died, children died, and the European Union delegation was also attacked,” he told reporters.
Mr Wadephul added that Germany wanted to show it was considering a further response and that any action would be taken jointly by the EU.
A Foreign Commonwealth and Development Office Spokesperson said: “The UK condemns in the strongest terms these outrageous attacks on Ukrainians and the damage done to the British Council and EU Delegation.
“Russia’s increasing attacks on Ukrainian civilians and cities, including Kyiv, are an escalation of the war and deeply irresponsible and are further sabotaging international peace efforts.
“We have made clear to the Russians that such actions will only harden UK and Western resolve to support Ukraine and bring an end to this unjustified war.
“Russia must stop this senseless killing and destruction immediately.”
A former Metropolitan Police volunteer has been found guilty of raping and sexually assaulting a child.
James Bubb, who now identifies as a woman named Gwyn Samuels, assaulted the victim multiple times when she was between the ages of 12 and 18.
Jurors were told Bubb, who identified as male at the time of the offences, would be referred to by their biological sex when allegations were being discussed throughout the trial.
Bubb met the victim on a video chat site in 2018, when he was around 21 and she was 12 years old. They then met in person for the first time at a Christian festival a few months later, the court was told.
The trial heard Bubb sexually assaulted the girl in public shortly before her 13th birthday, and that he was violent towards the girl when he raped her in her early teens.
Image: Pic: Thames Valley Police
In relation to the complainant, Bubb was on Thursday found guilty of one count of raping a child under 13, one count of sexual activity with a child, one count of assault of a child under 13 by penetration, and one count of assault by penetration.
He was found not guilty of one count of rape and one count of sexual activity with a child in relation to that complainant, and found guilty of one count of rape against a second person.
The defendant made no expression as the verdicts were read out, but sobbed with their head in their hands after the foreman finished speaking.
Bubb, who is now 27, started training with the Met in 2020.
The first victim said the defendant spoke “a lot about the powers he had” in his role as a special constable.
Prince Harry will return to the UK on the third anniversary of Queen Elizabeth II’s death next month for a charity awards ceremony.
The Duke of Sussex, 40, will support the WellChild children’s charity on September 8.
Prince Harry, who lives in California with his wife, Meghan Markle, 44, is a long-standing patron of the charity.
The 2025 awards mark three years to the day that Queen Elizabeth II, the duke’s grandmother, died at her home in Balmoral, Aberdeenshire.
‘Their stories remind us of the power of compassion’
Harry said in a statement: “I am always privileged to attend the WellChild Awards and meet the incredible children, families and professionals who inspire us all with their strength and spirit.
“For 20 years, these awards have highlighted the courage of young people living with complex health needs and shone a light on the devoted caregivers – family and professionals – who support them every step of the way.
“Their stories remind us of the power of compassion, connection and community.”
Image: Prince Harry lives in California with wife Meghan Markle. Pic: Yui Mok/Pool via REUTERS
Harry is set to make a speech, present an award to an “inspirational child” aged between four and six and meet and talk with seriously ill children and their families.
He has held the role of the charity’s patron for 17 years and has attended the awards 14 times before.
The charity describes itself as the national children’s charity “making it possible for children and young people with complex medical needs to thrive at home instead of hospital, wherever possible”.