ENERGY companies posted £23.1 billion in profit so far this year as ministers warn households they could face high prices eight months after the end of the US war in Iran.
Returns of 30 major companies involved in the energy sector in Britain were up this year before the start of the war in the Middle East, according to analysis from the End Fuel Poverty Coalition published today.
Their research revealed an increase from £22.7bn in 2024, noting a slight decrease from the £27.6bn posted in 2023 at the height of the price shock triggered by the Russian invasion of Ukraine.
As the numbers only reflect earnings predating the start of the conflict in Iran on February 28, several oil and gas giants are expected to turn even higher profits in upcoming reporting periods.
BP has already suggested it will make “exceptional” returns and Shell could bank up to £5bn in oil price profits, researchers said.
Company bosses have seen their personal wealth grow since the start of the war, the report said, citing Harbour Energy’s Linda Z Cook who saw the value of her shares go up by more than £4 million to £26m in the first four weeks of the conflict.
The increase in profits comes as households brace for a rise in energy bills from July 1, at the start of the next Ofgem price cap period.
Chief secretary to the PM Darren Jones told the BBC’s Sunday with Laura Kuenssberg yesterday that people could face high prices on energy, food and travel costs for at least eight months after the end of the conflict in Iran.
Mr Jones said that the government was examining the economic impact of the war “in a lot of detail,” adding that “price pressure” was a more likely scenario than empty supermarket shelves.
He said: “Our best guess is eight plus months from the point of resolution that you’ll see economic impacts coming through the system.
“So people will see higher energy prices, food prices […] flight ticket prices as a consequence of what [US President] Donald Trump has done in the Middle East.”
Sir Keir Starmer is set to chair a Cabinet committee meeting on Tuesday to set forward a plan for supply chain shortfalls, while a group of ministers meet twice a week to examine potential issues with stocks in food and other necessary commodities.
Officials earlier this month drew up a worst-case scenario contingency plan for food shortages by the summer, including chicken and pork, if the war continues.
It follows a prediction by the International Monetary Fund (IMF) last week which said Britain’s energy stock would be hardest hit among the advanced economies, claiming economic growth this year will be 0.8 per cent rather than the previously predicted 1.3 per cent.
The End Fuel Poverty Coalition co-ordinator Simon Francis said the figures “are a damning verdict on an energy system that is failing the people it is supposed to serve.
“Households were already struggling with rising bills before Russia invaded Ukraine and sent gas prices through the roof. Now Trump’s war in Iran is delivering a third hammer blow.
“While households face another bill rise in July and millions remain trapped in fuel poverty, the companies that control our energy supply are cashing in.”
Uplift deputy director Robert Palmer said: “It’s appalling that while millions are worrying over energy bills, these figures show that even before the war in Iran, energy companies were raking in billions of profits.
“The war is going to make all of this worse — with higher energy bills for most of us, while around the world oil companies are making an obscene $30m (£22m) an hour in unearned profits.
“The UK’s dependence on oil and gas is making all of us poorer. All except for the oil bosses and their shareholders who, once again, are profiting at our expense.”
Mr Palmer called on the government to “ramp up renewables, and upgrade homes with solar power, batteries and heat pumps.
“It is the only way to insulate ourselves from energy shocks and protect the climate.
“We also need to support those who need it most with financial help. We should be putting these profits back in people’s pockets, not making the public pay for what is a humanitarian and economic disaster.”
