Study: Energy Firms Rake in £457bn Since the Onset of Energy Crisis

The End Fuel Poverty Coalition has sounded the alarm, urging immediate action to break the "vicious cycle of bill shocks" plaguing households. In a striking revelation, the Coalition's latest Energy Profits Tracker shows that just 20 leading energy companies have collectively amassed a staggering £457 billion in profits since Russia's invasion of Ukraine triggered an energy crisis, sending household bills through the roof.

The report paints a stark picture: within this year alone, these energy giants have raked in an eye-watering £61 billion. This surge in profits follows the sharp spike in European gas prices that began in 2020 following the geopolitical upheaval. Caroline Simpson, a spokesperson for the End Fuel Poverty Coalition, didn't mince words, calling the findings evidence of "an obscene level of profiteering" within the energy sector.

Yet, the report doesn't suggest a uniform windfall across the industry. In fact, it highlights a tale of two worlds within the energy market. While some energy supply companies like OVO Energy and Octopus Energy have struggled, reporting losses of £1.4 billion and £110 million, respectively, others have thrived. The oil and gas sector, in particular, has seen profits soar. Equinor has posted a jaw-dropping £129.2 billion in profits since 2020, while Shell and BP have reported £84.5 billion and £44.5 billion, respectively.

Energy generation giants have also seen substantial gains. Since the onset of the crisis, EDF, Scottish Power owner Iberdrola, and EON have recorded total profits of £75.5 billion, £47.7 billion, and £30.1 billion, respectively.

These findings follow Ofgem's recent announcement that household energy bills will climb yet again this winter. The energy regulator confirmed that the price cap will rise by 10 percent for the three months starting October 1, further exacerbating the financial strain on consumers.

In a controversial move, the new Labour government has decided to limit the winter fuel allowance to only the poorest pensioners through means testing to address the severe budget shortfall left by the previous administration.

The End Fuel Poverty Coalition estimates that the increase in the price cap will enable energy suppliers to pocket an additional 11 percent in profits from every household on a standard variable tariff, amounting to £1.2 billion over a year. The Coalition is calling for urgent investment in insulation and renewable energy to protect households from the relentless cycle of rising energy costs.

"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," said campaign spokesperson Caroline Simpson. "That's why the government is right to take suppliers to task and ask them how they plan to help customers of all ages get through the winter ahead given the added blow of a 10 percent price cap rise."

She added that investment in renewable energy and an extensive insulation program were urgently needed to end the "vicious cycle of bill shocks and reliance on volatile fossil fuels."