Boss of British Gas owner refuses to say whether he will give up bonus

The chief executive of British Gas-owner Centrica has refused to say whether he will accept a £1.6m bonus this year after profits at the company surged.

Centrica made record profits of £3.3bn last year as energy prices surged following Vladimir Putin's war in Ukraine a year ago.

Profits were more than triple the £949m Centrica made a year prior. A different measure of profit – earnings per share – increased eightfold.

Chief executive Chris O’Shea declined to say three times whether he would waive his bonus this year in recognition of the hardship faced by many of British Gas customers.

Mr O’Shea last year gave up a £1.1m award as energy prices were climbing rapidly. He is eligible for a bonus of up to £1.6m this year.

Centrica has faced severe criticism in recent weeks following reports the company was sending debt collectors to forcibly install prepayment metres in people’s homes.

Mr O’Shea said the company was investigating the “deeply concerning” reports, adding “every one of our customers deserves to be treated with dignity”.

He said the company had provided “stability and support” during the energy crisis by producing energy and helping customers.

“We invested £75m in supporting our energy customers in 2022, which was greater than the £8 post-tax profit per customer earned by British Gas Energy,” he said.

British Gas, which is the UK’s largest household energy supplier serving about 7.5 million households, made an annual profit of £72m last year, which was 40pc lower than 2021.

Mr O’Shea said: “Whilst customers may see some relief given recent easing of prices, it remains clear that some will continue to need help and we will do what we can to support them in the year ahead.”

Centrica’s surging profits were driven by its stake in Britain’s nuclear power fleet, gas production from the North Sea, the re-opening of its Rough gas storage facility, and trading business.

The results sparked immediate criticism, given high wholesale energy costs are driving a cost of living crisis. Average household energy bills are scheduled to rise by another £500 in April when the Government raises its price cap to £3,000, up from its current level of £2,500.

Paul Nowak, general secretary of the Trades Union Congress said: “Britain's energy market is broken. While millions of families struggle to heat their homes, firms like Centrica are raking in monster profits.”

Centrica expects to pay taxes for 2022 of £1bn, an effective tax rate of 34pc.

The Government last year introduced windfall taxes on energy producers to help fund support for households struggling with high energy bills.

Centrica said it expected to pay about £2.5bn in windfall taxes by 2028, although the exact amount will depend on wholesale prices.

The company will pay out a final dividend for the year of 2p per share, taking the full-year dividend to 3p per share.

Shares climbed 0.65pc on market opening to 98.36p, valuing the company at £5.7bn.