British Gas has announced its intentions to donate 10 per cent of its profits as households brace for soaring energy bills.
The company says the money will be provided through the British Gas Energy Support Fund which provides grants for those who need it most. Thousands of customers will be set to receive an average of £750 per household, according to the firm.
It comes after energy regulator Ofgem prepares its plans to announce a potential huge rise in the energy cap on Friday as global gas prices continue to rise. Bills for the average households could increase by 80 per cent throughout the winter period, with analysts at Cornwall Insight predicting average costs will increase to £3,554 in October and £4,650 in January.
Read more: What a smart meter is and how to get one installed
The British Chambers of Commerce (BCC) has urged ministers to provide more power to Ofgem, cut VAT, and introduce emergency grants to help enterprises deal with skyrocketing costs. British Gas enjoyed high pre-tax profits of £98 million in the first half of 2022 - this would equate its donations to £9.8 million.
The supplier believes this could rise to £12 million over the winter period when energy usage is at its highest across the country. Chris O’Shea, chief executive of Centrica, the parent company of British Gas Energy, said: “The current cost-of-living crisis requires all of us to think differently.
“As a responsible business we want to do more to support our customers during this difficult time. Committing 10% of our profits for the duration of the energy crisis will mean we can target help at those who need it the most.
“This increased investment in supporting our customers adds to the financial support and advice we already offer and ensures more grants will be available as we go into this winter.”
British Gas also said it is offering the largest voluntary aid package of any UK energy supplier, with a total fund of £18 million over the previous eight months, including new funding which will be backdated to the start of 2022.
Read next:
-
Brits urged to make simple five-minute home check to save thousands on energy bills
-
DWP warning to everyone who is eligible for a cost of living payment
-
Utility Warehouse customers can get this fixed tariff ahead of October energy price cap
-
Thousands of homeowners who paid doubled ground rent to receive refund
-
People urged to claim £150 grant 'as soon as possible' as deadline approaches
