Energy companies in the UK have reported profits exceeding £23.1 billion in 2025, signaling potential bill increases for households this summer. This represents a rise from the previous year’s £22.7 billion, as indicated by recent analysis from the End Fuel Poverty Coalition. Notably, these figures do not encompass earnings linked to the Iran conflict.
Major oil company BP has already hinted at a strong performance for the first quarter, while Shell anticipates notably higher profits. BP is scheduled to unveil its latest results on Tuesday, with Shell following suit on May 7.
The surge in oil prices, reaching nearly $120 per barrel after the closure of the Strait of Hormuz, is expected to result in a spike in energy bills for UK households starting in July. Analysts at Cornwall Insight project that the price cap could escalate to £1,837 annually, up from the current level of £1,641. Ofgem is set to announce the new price cap level by May 27.
Heating oil and LPG energy users have already experienced steep cost increases, prompting governmental aid packages. Simon Francis from The End Fuel Poverty Coalition criticized the energy system for failing consumers and highlighted the impact of geopolitical events on escalating energy costs.
Robert Palmer, Deputy Director of Uplift, expressed concern over the excessive profits of energy companies amidst rising bills and international conflicts. He emphasized the need for renewable energy investments and financial assistance for those most affected by the energy price surge.
Research conducted by the End Fuel Poverty Coalition on 30 energy firms revealed a total profit of £27.6 billion in 2023, showing a slight decrease from the previous year during the Ukraine conflict. The call for transitioning to renewable energy sources and supporting vulnerable individuals remains critical in mitigating the impacts of energy price hikes.