British Gas’s retail operation has reported a substantial spike in profits despite a squeeze on the energy sector which has caused many rivals to go out of business.
Parent company Centrica said that British Gas Energy had reported a 44 per cent jump in adjusted operating profit, which reached £118 million in 2021, helped by households using more gas in the first six months of the year.
The unusually warm weather in the last three months of the year also allowed it to sell gas and electricity it had bought in advance, cashing in on high energy costs.
British Gas owner Centrica has said it will pay back the £27 million that it claimed in furlough cash, while chief executive Chris O’Shea also agreed to waive his £1.1 million bonus. His regular salary is £775,000.
Centrica chairman Scott Wheway said: “In 2021, I’m proud of the way Chris O’Shea has led Centrica to deliver significant benefits for our customers and wider stakeholders.
“We have rescued more than 700,000 customers from bankrupt suppliers, our engineers have bravely stayed out on the front line, despite the challenges of Covid to fix the heating of millions of homes and we’ve done more than ever before to help support vulnerable customers to cope with the energy price crisis.”
He added: “Our financial progress and these achievements triggered an annual bonus entitlement for the CEO and it’s a mark of Chris’s exemplary leadership that, mindful of the difficulties many household face in light of the extreme rise in global energy costs, he has indicated to the board his intention to forfeit this entitlement.”
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