UK energy companies recorded profits exceeding £23.1 billion in 2025, signaling a potential increase in summer bills for households.
Comparatively, the figure rose from £22.7 billion in 2024, as highlighted by a recent analysis from the End Fuel Poverty Coalition. Notably, these calculations exclude any returns associated with the Iran conflict.
Major oil company BP has already hinted at a strong performance for the initial quarter of the year, while Shell anticipates considerably higher profits.
BP is slated to disclose its upcoming results on Tuesday, followed by Shell on May 7.
The surge in oil prices to nearly $120 per barrel following the closure of the Strait of Hormuz has set the stage for an impending spike in energy bills for UK households starting July. Analysts at Cornwall Insight predict a potential rise in the price cap to £1,837 annually.
Ofgem is expected to reveal the revised July price cap by May 27, with the current cap fixed at £1,641 per year.
Households reliant on heating oil and LPG energy sources have already witnessed a surge in energy expenses, prompting the government to introduce a support package.
Simon Francis of The End Fuel Poverty Coalition criticized the energy system, stating, “These figures reflect a failing energy system that neglects its intended beneficiaries.”
“Prior to the escalation of gas prices due to the Russia-Ukraine conflict and now the Iran situation, households were already grappling with escalating bills. The ongoing profit accumulation by energy companies while households face another bill increase in July is concerning,” Francis added.
Robert Palmer, Uplift Deputy Director, expressed dismay at the profit margins of energy companies amid public concerns over bills. Palmer emphasized the need to transition towards renewable energy sources to shield against price fluctuations and protect the environment.
Researchers associated with the End Fuel Poverty Coalition examined the profits declared by 30 energy firms, comprising producers, grid operators, and suppliers. Figures show a slight decline from the £27.6 billion reported in 2023 during the peak of the Ukraine conflict.
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