BNR – The energy and home services giant, British Gas, revealed achieving record-high H1 earnings of 969mln pounds. The increase in revenue follows regulation changes that enabled the provider to earn more profit from home bills.
Nearly 50 per cent of the earnings was because of bylaw changes within the company.
The Office of Gas and Electricity Markets (Ofgem) stated that providers may request more money from households. Providers can do so, according to Ofgem, to cover their huge expense debt sustained during the coronavirus pandemic.
Energy Giants Benefit from Falling Oil and Gas Costs
The hike in earnings occurred even though there was a fall in oil and gas costs, which impacted other companies. Moreover, the energy giant’s results came at the pinnacle of people in the UK suffering to pay the electricity bill.
The regulation change was introduced to allow energy companies to get compensation for losses they sustained during the Russia-Ukraine war. During the war, bulk oil and gas costs hiked, but the energy bills were restricted due to a price cap.
Centrica, the owner of British Gas, said that the operation profit for H1 this year is 2.1bln pounds, up from 1.3bln pounds last year. Energy companies have made huge earnings, despite the fact that prices are not as hiked as last year.
The Russian invasion of Ukraine last year resulted in the hiking of oil prices, raising energy companies’ profit margins.
The British multinational energy company, Shell, stated that earnings dropped to $5bln in the period from April to June. It said that the reason is partly because of the falling price.
The company added that it had been selling less fuel and gaining less profit from refineries.