Energy companies in the UK reported profits exceeding £23.1 billion in 2025, signaling potential bill hikes for households in the upcoming summer. This marked an increase from the previous year’s £22.7 billion, as per recent analysis by the End Fuel Poverty Coalition, excluding gains related to the Iran conflict.
Major oil companies like BP and Shell are expecting robust financial performances, with BP set to unveil its results on Tuesday and Shell following suit on May 7. The price of oil surged to nearly $120 per barrel due to the closure of the Strait of Hormuz, leading to projections of escalating energy bills for UK homes starting in July. Cornwall Insight analysts anticipate the price cap could climb to £1,837 annually, up from the current cap of £1,641, pending Ofgem’s announcement by May 27.
Households relying on heating oil and LPG energy have already seen steep cost increases, prompting government intervention. Simon Francis of The End Fuel Poverty Coalition criticized the energy system for failing consumers, especially amidst geopolitical tensions impacting gas prices. Similarly, Robert Palmer from Uplift highlighted the disparity between rising energy costs for consumers and the substantial profits reaped by energy companies, emphasizing the need to prioritize renewable energy sources and provide financial assistance to those most affected.
A study by the End Fuel Poverty Coalition revealed a total profit of £27.6 billion in 2023 across 30 energy firms, with a slight decline in subsequent years. The call to transition to renewable energy solutions and address the humanitarian and economic implications of energy crises remains pertinent in the face of escalating global energy challenges.