News Archives - End Fuel Poverty Coalition

Energy industry profits hit half a trillion pounds while bills rise

Energy giants have pocketed over £500 billion in profits since the energy crisis started according to an updated analysis of company reports. [1]

Researchers working for the End Fuel Poverty Coalition examined the declared profits of firms ranging from energy producers (such as Equinor and Shell) through to the firms that control our energy grid (such as National Grid and UK Power Networks) as well as suppliers (such as British Gas).

As energy prices increase by 6.4% this week for households across the country, the analysis shows that almost half of the total profits since 2020 (£207bn) are generated by firms with extensive involvement in the gas industry.

The cost of every unit of gas used will surge by over 10% from 1 April, meaning the cost of gas is now double what it was in winter 2020/21. The cost of gas not only affects households’ ability to keep warm, but also sets electricity prices up to 40% of the time under energy market rules.

Also profiting are the firms and business units responsible for electricity and gas transmission and distribution. These are the “network costs” consumers pay for maintaining the pipes and wires of the energy system and are usually paid for through standing charges on energy bills.

But earlier this year, Citizens Advice found that these firms had made an estimated £4bn in extra profits after a “misjudgement” by regulator Ofgem. Previous research also found that the same firms underspent on vital grid improvements by almost £1bn.

A spokesperson for the End Fuel Poverty Coalition, commented:

“As energy prices remain at levels way above the 2020 benchmark, the energy industry is taking us for April fools. We need politicians and regulators to act to bring down energy bills now.

“This means radical reform of the electricity pricing markets, investment in homegrown renewables and taking on the vested interests of an energy industry which makes billions of pounds of profits every year at consumers’ expense.

“In addition, we need to see steps taken immediately to help households reduce energy consumption in a safe way, by improving energy efficiency of buildings. This is why MPs need to push the Chancellor to commit the full £13.2bn funding needed for the Warm Homes Plan through the Comprehensive Spending Review.”

Maria Carvalho, from Medact which represents frontline health workers, commented:

“The record-breaking profits of energy giants come at an unbearable cost to public health.

“Cold homes cause illness and drive patients into already overwhelmed NHS services, while energy debt traps families in a cycle of financial and mental distress.

“Every pound pocketed by these corporations is a pound that could have kept someone warm, well, and out of hospital. The government must act now to rein in energy profiteering and invest in a fair, sustainable energy system that protects health rather than harming it.”

Jonathan Bean from Fuel Poverty Action added:

“Without radical reforms, millions of us will continue to suffer and die in energy starvation due to inflated energy pricing. We are not getting the benefit of our increasing supply of cheap renewable energy.”

Warm This Winter spokesperson Caroline Simpson said:

“Frankly this is shameful. Whilst the whole of the UK struggles with ‘Awful April’ these energy profiteers are celebrating ‘Awesome April’ with their latest results showing they made over half a trillion pounds in profits since 2020.

“It’s incomprehensible in so many ways and plain wrong that a mere 20 companies have made so much money out of people’s misery. The industry can spare a few of their many billions to bring down bills, pay for energy efficient homes and switch from oil and gas to save the planet.

“Now more than ever, we need to give everyone in the UK the peace of mind that comes with having energy security from homegrown solar and wind so we’re not at the mercy of either profiteering oil and gas companies or hostile countries.”

ENDS

[1] The data was compiled from publicly available accounts and financial statements, using the best available measure of company profits. These measures differ from company to company due to reporting processes and regulatory requirements in different jurisdictions. In determining which measure of profitability to use, the research has prioritised the measure preferred in the company’s own accounts.

Full information available at: https://www.endfuelpoverty.org.uk/news/energy-firm-profits-tracker/ Data as at 21 March 2024.

The data was compiled by freelance business journalist David Craik. David’s experience has included writing business and city news and features for national newspapers and magazines such as The Daily Mirror, Sunday Times, Wall Street Journal, Scotsman and Daily Express. Much of his content focuses on company financial results and reports in the energy sector and on personal finance issues including wealth management, property, investing and managing household budgets and bills. If any firm wishes to correct the record, please email info@endfuelpoverty.org.uk.

English fuel poverty figures highlight failure to tackle energy bills crisis

The Government has published the latest English fuel poverty figures for 2024 [pdf].

It shows that in 2024, there were an estimated 11.0% of households (2.73 million) in fuel poverty in England under the Low Income Low Energy Efficiency (LILEE) metric.

This is a slight reduction from 11.4% (2.80 million households) in 2023, although among households where the oldest resident is aged over 75, there has been a slight increase in the numbers in fuel poverty (10.1% in 2024 up from 9.7%).

The average fuel poverty gap for England in 2024 (the reduction in energy costs needed for a household to not be in fuel poverty) was estimated at £407, down by 4% in real terms since 2023.

But the data also shows that the number of households who are required to spend more than 10 per cent of their income (after housing costs) on domestic energy. In 2024, 36.3 per cent of households (8.99 million) exceeded this threshold, up from 35.5 per cent in 2023 (8.73 million).

Jonathan Bean from Fuel Poverty Action, commented:

“The latest Government fuel poverty statistics expose the complete failure of Government and Ofgem to tackle the energy affordability and fuel poverty crisis.

“A shocking 36.3% of households in England are unable to afford the inflated energy prices we are forced to pay due to a rigged energy market and obscene profits. Many of us are forced to survive the winter huddled under blankets and go without hot water.

“The Government tries to hide the extent of fuel poverty by excluding the millions of us on low incomes struggling with high energy prices based on an often flawed EPC rating. But even using its own distorted figures, the Government has failed to address fuel poverty, and is expecting it to actually rise next year.”

The figures show significant revisions not only based on previous projections, but also fundamentally change previously published 2023 data. For example, the previous figure the ONS had produced for fuel poverty under the LILEE measure in 2023 was 3.17m households – a difference of over 300,000 households to the revised figure published today [pdf].

Simon Francis, coordinator of the End Fuel Poverty Coalition, commented:

“The latest figures show the inadequacy of current fuel poverty monitoring.

“On the one hand it is welcome that official rates of fuel poverty are down – it means that investing in energy efficiency measures such as insulation and heat pumps works.

“But on the other hand, we see the measure which is most sensitive to the rising cost of living creeping up. This shows just how devastating the ongoing cost of living crisis is and what a mistake it was for the Chancellor to axe Winter Fuel Payments.

“It is now high time that the Chancellor finally commits in full to the £13.2bn Warm Homes Plan promised in the Labour Manifesto. This will ensure that millions of people can stay warm every winter.

“But given that energy bills continue to rise – and even the Office of Budget Responsibility has said that increases in gas prices are harming the economy – the Government must go further.

“The Chancellor must provide help to those struggling in fuel poverty now, not continue with cuts in vital support to older and disabled people.

“We need a government willing to invest in the solutions to the cost of living crisis – and the future of the country.”

Dr Matthew Scott, Senior Policy Officer at the Chartered Institute of Housing, said:

“Everyone should be able to live in a safe, warm home. However, the latest fuel poverty statistics published this morning show that progress essentially flatlined in the final years of the previous government.

“Through its Warm Homes Plan and updated fuel poverty strategy, the new government has an unmissable opportunity to reverse this trend. By building on its welcome investment into the Social Housing Fund and Local Grant programmes, the government can reduce energy bills and improve the health and wellbeing of millions of people before the end of the decade.

“CIH continues to call for the government to allocate the full £13.2 billion to its Warm Homes Plan in the forthcoming spending review, utilising the expertise and experience of social housing providers as key delivery partners.”

Jonathan Bean added:

“Government energy efficiency schemes are failing badly as they have only taken only 0.2% of households out of fuel poverty, even if changes to the Warm Home Discount Scheme are included. At this rate it will take until 2070 to hit the Government’s 2030 Fuel Poverty Target.

“One reason for the failure of retrofit schemes is that they have not focussed on the homes with the highest fuel poverty incidence, conversion flats (18.8%). Instead schemes are biased towards those in detached houses, who have the lowest fuel poverty incidence (7.3%). A totally new retrofit strategy is needed if the Government is serious about tackling fuel poverty.

“Electric only households have double the rate (20.7%) of fuel poverty than gas (10.0%) which highlights the urgency of bringing down inflated electricity prices that are currently quadruple the price of gas.”

Ministers should go further on Warm Home Discount reforms

The UK Government’s proposed expansion of the Warm Home Discount (WHD) is a welcome step, but campaigners have urged ministers to go further in ensuring vulnerable households receive the support they need this winter and beyond.

From 1 April 2025, energy bills will rise by 6.4%, keeping costs at levels 77% higher than in 2020. Millions of households – especially older people, renters, prepayment meter users, and those with health conditions – are struggling to afford these soaring costs.

In a consultation issued by Government, Ministers have proposed removing the high-cost-to-heat threshold from WHD rules which means that more means-tested benefit claimants will be able to qualify for the scheme.

However, in the End Fuel Poverty Coalition response to the consultation, experts stress that disabled people and those on non-means-tested disability benefits must also be included, as they often face significantly higher heating costs.

Furthermore, campaigners argue the WHD should be increased in line with inflation and funded from sources like the £4bn in excess profits made by energy network companies, rather than customer bills.

Expanding the Park Homes Warm Home Discount Scheme (PHWHDS) is also crucial, as many in atypical housing arrangements have been excluded from previous energy support. This includes people living in park homes who tend to be older and also those such as Gypsy, Traveller, and Boater communities.

However, there are concerns that broadening the scheme without increasing funding will mean many existing and newly eligible households could miss out.

A spokesperson for the End Fuel Poverty Coalition, commented:

“We strongly support the expansion of the Warm Home Discount as set out in the consultation. However, we believe that in expanding the scheme, the Government must also extend the support to more households who will otherwise suffer in cold damp homes next winter.

“Ministers’ proposals must also be properly resourced, rather than diverting money from energy advice initiatives that help those struggling with energy costs.

“Looking ahead, we need to see a more sustainable, long-term energy bill support scheme that targets all low-income households, including those with high energy needs who do not receive means-tested benefits.”

ENDS

Full consultation response available: https://www.endfuelpoverty.org.uk/news/reports-and-correspondence/

Image credit: Ascannio / Shutterstock.com

Campaigners urge stronger action on energy standing charge tariff reform

Charities and consumer groups have warned that Ofgem’s proposals for standing charge reform could see many households end up worse off if they accept one of the proposed tariffs.

In a submission to the official consultation on the issue, the End Fuel Poverty Coalition describes how consumers would only need to use half of the “typical domestic consumption values” before their bills increase if on a “zero standing charge” tariff.

Given the risks posed by the proposals, campaigners stress that the consultation should proceed with extreme caution and only after thorough piloting and evaluation to assess potential negative impacts on consumer behaviour.

A spokesperson for the End Fuel Poverty Coalition explains the concerns:

“In essence, the proposals create only two groups who might see savings.

“Firstly, those who drastically self-ration or self-disconnect from energy, potentially putting their health and well-being at risk. There can be no ethical justification for forcing households to reduce energy use to dangerously low levels in order to maintain the benefits of a particular tariff.

“The second group who may benefit are those who can minimise usage through smart technology, but this risks creating further inequality in the energy market due to ongoing issues with smart meter rollout.”

Other concerns expressed by the Coalition argue that the proposals do not move costs away from energy bills and simply “rearrange the deckchairs”, that they present a flawed version of rising block tariff for consideration and do not contain wider proposals for reform previously put forward (pdf).

It is argued that the current consultation also fails to address the unfair burden of standing charges, particularly for prepayment meter customers, who often accrue standing charge debt when disconnected.

National Energy Action warns that under the next price cap, some gas prepay users could face nearly £60 in charges before they can reconnect their supply and that 67% of prepayment users expect to ration their energy, highlighting the financial hardship imposed by the existing system.

Unlike other consumers, prepayment customers often lack a direct relationship with suppliers, making it unlikely they will switch to proposed zero-standing charge tariffs.

Campaigners are calling for more targeted policy solutions, including shifting standing charge accrual to the back of prepayment meters to prevent debt accumulation. They argue this measure would be minimally disruptive for suppliers while significantly helping vulnerable households.

The spokesperson continued:

We know that some of these issues need to be addressed working with the Government and are not in Ofgem’s gift. We urge the regulator to think again and meet with Ministers to discuss how their decisions can positively alter the affordability of energy bills, avoid discriminatory pricing and deliver longer-term reforms that bring down the cost of energy.

ENDS

Full consultation response available: https://www.endfuelpoverty.org.uk/news/reports-and-correspondence/

Energy affordability and more insulation will support the NHS say medics

Over two thirds (68%) of UK health workers say high energy bills contribute to avoidable hospital admissions according to new research by campaign group Medact.

Forty-five per cent have sent patients home knowing that their housing situation would make them ill again.

Seven out of ten health workers (70%) regularly see patients forced to go without energy because they are unable to pay their bills and of these, nearly a third (30%) report witnessing this weekly.

Over two thirds (68%) of UK health workers say high energy bills contribute to avoidable hospital admissions. Forty-five per cent have sent patients home knowing that their housing situation would make them ill again.

Ofgem recently announced that the energy price cap for April to June will increase by 6.4%, bringing the average annual energy bill to £1,849. Compared to winter 2020/21, this represents a 77% increase, or over £800 more per year per household.

Cold homes contribute to respiratory conditions, cardiovascular diseases, mental health issues, dementia, and hypothermia—and significantly slow recovery from injury.

According to this new data, almost three quarters (72%) of health workers believe poor-quality housing worsens chronic health conditions or delays treatment of them, and two thirds (67%) see children experiencing respiratory problems caused or worsened by mould or damp regularly (at least once a month).

Over half believe that addressing energy affordability (67%) and improving energy efficiency (59%) would reduce the impact of housing problems on the NHS.

Over half (53%) of health workers also report their own mental or physical health has been impacted by housing issues. In addition, one in four believe that the health impacts of housing problems put plans to improve the NHS at risk.

Dr LJ Smith, a respiratory consultant working in London, said:

“Every single day I treat patients whose lung conditions are entirely preventable, but they tell me their homes are cold, mouldy and damp, and they just cannot afford to keep the heating on. As a healthcare worker I shouldn’t need a detailed knowledge of energy tariffs and benefits –I just want to get back to the job I was trained to do, working with my patients to help them thrive despite their lung condition. This is a public health crisis that is entirely preventable, with solutions that lie outside the NHS.”

Dr Sabrina Monteregge, clinical psychologist working in London said:

“We can fund the NHS but if that’s not alongside funding healthy homes, we’re not going to get very far, because we are just constantly treating problems that the NHS is not built for. The NHS is on its knees, but it was never meant to stand alone – it must work alongside policies that support public health.”

A spokesperson for the End Fuel Poverty Coalition, commented:

“These shocking findings depict the front-line, public health crisis caused by high energy costs and poorly insulated homes.

“Expert reports have long made the link between living in cold damp homes and medical problems, but this research brings home the real-life situations that people are facing.

“We need bolder action from the government to address this crisis – that means all government departments working together to see fuel poverty as a national challenge. And it means the Chancellor backing moves to tackle the problem, such as committing the full £13.2bn funding needed for the Warm Homes Plan.”

ENDS

Opinion poll was conducted by Survation. 2,128 healthcare workers were surveyed, aged 18+ in the UK, between 28th January and 3rd February 2025. Of these, 1,773 were in patient-facing roles. These findings will be a part of a report to be released by Medact in March. Medact is a public health campaigning organisation whose members are made up of health workers from across the UK.

Households face 6.4% energy bills hike, but Warm Home Discounts to be expanded

Ofgem has announced the energy price cap for April to June is now set to rise by 6.4% from current levels meaning an average annual bill of £1,849 for households paying by direct debit.

This means the average household is set to pay over £800 more per year for their energy compared to winter 2020/21 – a 77% increase.

The Ofgem price cap means that energy firms should not charge more than the set rate for unit rates and daily standing charges for those on standard variable tariffs.

The cost of every unit of gas used will surge by over 10%, meaning the cost of gas is now double what it was in winter 2020/21.

Every unit of electricity will go up almost 9%. Around 40% of the time the cost of electricity is also driven by the price of gas due to the country’s energy system.

Also included in the small print is a clause that will allow energy suppliers to increase the profits (EBIT) made on every customer’s bill by 4.1% compared to the current quarter. The wider energy industry has already made £483bn in profit over the course of the energy bills crisis.

Taking into account price changes and government support over time, the total extra cost that the average household has had to find for their energy will reach £3,039 by the end of June 2025. [1]

Ministers have announced that the Warm Home Discount scheme will be expanded from winter 2025/26 to help an additional three million households while debt relief programmes will be improved following a consultation by Ofgem.

Simon Francis, coordinator of the End Fuel Poverty Coalition, commented:

“The soaring cost of gas is driving the current spike in energy bills and the only way out of the problem is to continue drives to improve our energy security and for the Chancellor to announce a £13.2bn, fully-funded, Warm Homes Plan in the Comprehensive Spending Review.

“But alongside the transition away from reliance on gas, it’s crucial to provide support for vulnerable households struggling with energy costs now.

“Ministers are right to be focused on improving the Warm Home Discount scheme and on energy debt, which continues at record levels because households have to find more even money to use the same amount of energy.

“The big question will be how do we pay for these improvements in support. Both Warm Home Discounts and debt relief are traditionally funded through our energy bills. Yet the energy industry makes billions of pounds in profit every year and it beggars belief that Ofgem is increasing the profit and headroom allowances for suppliers in the current climate.

“For now, the advice for households is to make the most of existing energy efficiency schemes and if customers do shop around for a lower energy bill, they must use their own energy usage on price comparison sites. Bills can vary greatly due to different rates for every unit of energy used and the daily standing charges so it pays to be aware of how these might affect the total bill.”

Caroline Simpson, Warm This Winter campaign manager, commented:

“Yet another price cap rise is devastating news but billpayers need to know it is caused because global gas prices are soaring due to factors outside of our control and profiteering energy giants such as Centrica and Norwegian-owned Equinor, the biggest supplier of gas to the UK, who make billions of pounds each year out of our misery.

“It is therefore crucial that the government presses on with plans to fix this broken system and boost our energy security by rapidly increasing our supply of homegrown clean energy to free us from expensive gas and bring down bills for everyone for good.

“This must come alongside reform of electricity markets, investment in energy efficiency in our homes and financial support with the cost of energy for the most vulnerable households.”

James Watson-O’Neill, Chief Executive of the national disability charity Sense, said:

“Yet another increase in the energy price cap – the third in a row – will dismay many disabled people.

“Disabled households are telling us they’re living in crisis. The need to power crucial equipment, such as feeding machines and hoists, means many disabled people have no choice but to use extra energy. Our research clearly shows that many disabled people with complex needs are already struggling to afford their energy bills, with more than two in five (42 per cent) telling us they can’t afford to keep their home warm enough.

“Disabled people are more likely to be in fuel poverty than non-disabled people, and we know it’s not just extra energy bills that can hit hard. There are also the extra costs associated with specialist diets, insurances, therapies and accessible transport that disabled people need to contend with. An increase in energy costs is the last thing disabled people need.

“There is no end in sight and disabled people cannot be left waiting any longer for targeted help with their energy bills. We need the government to urgently implement a social energy tariff, to help level the playing field for those who rely on energy-intensive equipment.”

ENDS

[1] Data for excess costs above winter 2020/21 baseline is available from our page on the Ofgem price cap.

Cap change date	Average household energy bill (GBP)	Amount above GBP1,042 per household (weighted for the number of months in price cap period)
01-Oct-20	£ 1,042	Baseline
01-Apr-21	£ 1,138	£ 48
01-Oct-21	£ 1,277	£ 118
01-Apr-22	£ 1,971	£ 465
01-Oct-22	£ 2,100	£ 529
01-Apr-23	£ 2,500	£ 365
01-Jul-23	£ 2,074	£ 258
01-Oct-23	£ 1,834	£ 198
01-Jan-24	£ 1,928	£ 222
01-Apr-24	£ 1,690	£ 162
01-Jul-24	£ 1,568	£ 132
01-Oct-24	£ 1,717	£ 169
01-Jan-25	£ 1,738	£ 174
TOTAL		£ 2,837
01-Apr-25	£ 1,849	£ 202
TOTAL		£ 3,039

Role of gas in the spotlight as energy prices set to rise

Forecasts reveal the energy bill price cap is set to rise yet again in April when Ofgem makes the next price cap announcement on 25th February.

Meanwhile analysis of the energy market prices show that the increasing average household cost of energy directly mirrors a trend-line of gas prices since July 2024. [1]

At the heart of the challenge is the system that sees electricity prices being set by the cost of gas up to 40% of the time under the marginal pricing rules.

With the cost of gas rising to a two year high in recent weeks, the over reliance on fossil fuels in the country’s energy system is continuing to cause distress in households.

A spokesperson for the End Fuel Poverty Coalition, said:

“As volatile energy bills continue to be set by our reliance on global wholesale markets and driven by the cost of gas, it is even more vital that we see moves toward sustainable, cheaper, renewable energy.

“This of course needs to be combined with support for vulnerable households with their energy bills and investment in helping people make their homes more energy efficient – especially those living in low quality private rented homes.

“But until homes can be upgraded, consumers need to navigate a confusing array of energy tariffs. When comparing tariffs, customers must use their own energy usage and must not rely on industry averages as this may hide the true cost a household will pay.

“Customers also need to look out for exit fees which may trap you into uncompetitive tariffs in the future. And, if a household is interested in moving to a ‘tracker’ style tariff, it is even more important to make sure you look at your own usage, the unit costs and the standing charges and check that they will offer you real value for money.”

The current gas price surge is driven by the conflict in Ukraine, a colder than expected European winter and volatile wholesale markets operated by city market traders.

Campaigners have claimed that the latest energy price forecasts show customers are being gaslighted by an industry that has made £483 billion in profits since 2020.

Warm This Winter spokesperson Caroline Simpson said:

“It’s soul destroying that there will be another price cap rise. What billpayers don’t know is that even their electricity bills are chained to gas prices. This over reliance on gas – both for our heating and in setting the electricity price – is why we saw huge hikes in bills four years ago and now we are seeing prices set to rise again.

“Instead, the public are being told by some politicians that net zero and green policies are to blame which couldn’t be further from the truth and we need to stop gaslighting people.

“Our bills are high and the ones who benefit are greedy gas and oil companies who are making billions. That is why we desperately need to develop our own renewable energy sources as the only way to achieve lower prices and energy security for good.”

ENDS

[1] Raw data for chart as below.

Date	Gas price (USD/MMBtu)	Average annual energy bill (GBP)
Jul-24	2.04	1568.00
Aug-24	2.24	1568.00
Sep-24	2.32	1568.00
Oct-24	2.35	1717.00
Nov-24	2.82	1717.00
Dec-24	3.31	1717.00
Jan-25	3.95	1738.00
Feb-25	3.62	1738.00
Mar-25	Trend line	1738.00
Apr-25	Trend line	1846.00* or 1823.00**

Source for Natural Gas Prices: Bloomberg taken on closest working day to 17th of each month. Source for Energy Bill prices: Ofgem / *Guardian 18/2/25 **BBC 18/2/25

Snow and cold health warnings demonstrate need for energy bill support

As health experts warn old and disabled peoples’ lives are at risk with Britain set to freeze until Wednesday (January 8), campaigners are calling for the government to fast track a social tariff backed by three-quarters of voters.

Warm This Winter found a huge majority of the public think the Government should provide more support to vulnerable households with their energy bills [1] which they also believe should be funded by the wider energy sector that has made over £483 billion in profits according to the latest stats released by campaigners.

Three quarters of the public (75%) back the Government bringing in a social tariff to provide a discount on energy bills to those in greatest need of help.

A social tariff offers lasting protection to those who depend on heating and electricity the most for their health and well-being, reducing the costs of every unit of energy they use and shielding them from volatile and persistently high energy prices.

But after many pensioners have now seen their winter fuel payments removed, 78% of the public called for a social tariff to be made available to older people.

And 86% felt that those who are dependent on powered medical equipment in order to stay healthy at home (e.g. dialysis machines, oxygen concentrators, artificial ventilators) or rely on energy to power equipment (e.g. charge wheelchairs, run fridges for medicines) should get the tariff.

Similar high levels of support were found for the social tariff going to those who have respiratory diseases (81%), have cardiovascular disease (77%), disabilities (76%), are financially vulnerable (72%) or are at risk from not using energy due to money worries (69%).

As in previous polling, the public backed the social tariff being paid for by the energy industry (producers, networks and suppliers). There was also support for the cost being split between industry and general taxation.

There was almost no support for it being fully funded by spreading the costs across everyone else’s energy bills, which is usually what happens with support schemes at present.

Simon Francis, coordinator of the End Fuel Poverty Coalition, commented:

“As households continue to suffer as a result of our dependence on volatile gas prices, the to-do list for the Government in 2025 gets even longer.

“As a priority, Ministers must set out plans to tackle affordability and discrimination in the energy market. This is an imperative to reduce and prevent the public health complications that arise from so many millions of people living in cold damp homes.

“We must see affordable energy bills for those most in need of support through a social tariff alongside other measures to bring down prices, address issues with smart meters and ensure all households can access the best tariffs and support.

“At the same time, Ministers must not let up in delivering longer-term market reforms that prioritise consumers, while also providing the £13.2bn in funding needed for the Warm Homes Plan and continuing to drive forward renewable energy projects which improve our energy security.”

Warm This Winter campaign manager, Caroline Simpson, commented:

“The public believe that a social tariff must be implemented and this needs to be done as soon as possible to avoid more scenes of vulnerable people living in cold damp homes every winter. Hard-pressed bill payers also want to see this programme paid for by energy industry profits.

“Most also agree the only way to bring down everyone’s bills in the long term is to help households reduce their energy use, by insulating and ventilating the UK’s housing, which is some of the leakiest in Europe. But in the meantime we must ensure we protect the most vulnerable people in our society from the continuing high cost of energy driven by volatile gas prices.”

ENDS

[1] Opinium conducted an online survey of 2,014 nationally and politically representative UK adults between 7th and 8th October 2024.

Public reveal energy security fears as price cap increases

Three quarters (74%) of the public are worried about the global insecurity of energy prices over the next five years, according to new research for the Warm This Winter campaign. [1]

The figures found that two-thirds (67%) of the country are concerned about the impact of the UK’s reliance on oil and gas, while half (53%) are worried by the potential for the country not to build renewables fast enough over the next five years.

As the Ofgem price cap rises by 1.2% on 1 January 2025, four-fifths (79%) of the public are worried about the potential for further energy price rises over the next five years. Average energy bills remain around £700 a year above where they were in winter 2020/21.

The public’s fears are backed up by the latest predictions that show that energy bills are likely to rise again by around 3% in April 2025 and news that gas prices could rise again.

With households struggling through a fourth winter of the energy bills crisis, levels of energy debt have soared to record levels. Meanwhile 20 energy firms have made more than £483 billion in profits in recent years. [2]

A spokesperson for the End Fuel Poverty Coalition, commented:

“The public have seen first hand the impact of the energy bills crisis – driven by the UK’s reliance on volatile energy markets.

“Millions of people are living in cold damp homes, unable to heat their homes to a safe temperature or racking up massive debts – with some even turning to loan sharks.

“To add insult to injury, around a quarter of what is spent on heating our draughty properties is wasted, because the UK’s old housing stock is some of the worst insulated in Europe.

“2025 will be a momentous year for setting the future direction of energy policy with reforms to Ofgem itself, changes to standing charges and overhaul of electricity markets on the cards as well as the roll out of the Clean Power Plan.

“But the UK government needs to ensure that those suffering now are not abandoned. This means more support for households through a social tariff and delivering on its promise to help people to insulate their homes.”

Warm This Winter spokesperson Caroline Simpson said:

“As the latest price cap rise means energy bills will be 67% above what they were in winter 2020/21 we need long term solutions.

“A comprehensive insulation programme is the quickest and easiest way to bring down bills permanently because in real terms the average household is paying more than £700 extra to use similar levels of energy as a few winters ago.

“We have 8.8 million adults living in cold damp homes, exposed to the health complications that come from living in fuel poverty and while we welcome recent initiatives from Ofgem, insulation and ramping up renewables to get us off volatile oil and gas for good, is what we need.

“That has overwhelming support from people in the UK with eight in 10 backing an increase in the construction of offshore wind turbines and solar panel farms and three quarters (74%) supporting onshore wind farms. We urge the Government to get on with the job they have started on that road to permanently lowering bills for all.”

For older people, the changing price cap means that over the coldest months of the year, the poorest pensioners who have had the winter fuel payments taken away from them have had to find an extra £522 just to use the same, average household, level of energy. [3]

ENDS

[1] Opinium conducted an online survey of 2,000 UK adults between 22nd and 26th November 2024. Results have been weighted to be nationally representative.

[2] Consumer energy debt now stands at £3.82bn (Ofgem, December 2024). Profits figures released on 28 December 2024.

[3] Price cap for 1 Oct to 31 Dec 2023 stood at £1,834. As that is an annual figure, we divide it by 4 = £458.50 for the average household energy costs in that period. Price cap for 1 Jan 2024 to 31 Mar 2024 was £1,928, divided by 4 = £482. So the average household’s energy bill for the six months 1 Oct 23 to 31 Mar 24 was £940.50.

Then apply the £300 WFP and £300 Cost of Living adjustments, so the average older household would be paying £341 for this six months. Other WFP households which didn’t get COL payments would have paid £741.

Price cap 1 Oct to 31 Dec 2024 was £1717, divided by 4 = £429.25. Price cap 1 Jan to 31 Mar 25 is £1,738 divided by 4 = £434.50. So the average household’s energy bill for the six months is £863.75 which will be paid by all those missing out on WFP this year.

That’s a difference of £522 for the poorest pensioners and £123 for other pensioners.

Image: Abdul_Shakoor / Shutterstock.com

Energy firm profits top £483 billion since start of crisis

Just 20 energy companies have made £483 billion in profits since the start of the energy bills crisis. [1]

While the full range of figures for 2024 have yet to be declared, profits this year amount to £9bn with another £77bn of interims also posted.

Recent Ofgem price cap changes have seen energy bills creep upwards with a further 1.2% increase due to come into force from 1 January 2025.

A spokesperson for the End Fuel Poverty Coalition, commented:

“While consumers have suffered in cold damp homes this winter, energy firms’ boardrooms have been celebrating further bumper profits.

“To add insult to injury, around a quarter of what is spent on heating our draughty properties is wasted, because the fact is that the UK has some of the worst insulated homes in Europe. Fuel poor households are literally seeing money fly out of their windows and into the pockets of the energy industry.

“We are repeatedly told that there is not enough money to provide support for older people with their energy or to roll out comprehensive programmes of insulation, these figures show this is simply not true. There is plenty of money in the energy industry, it’s just not in the hands of hard-pressed customers.”

The staggering sums are revealed in the End Fuel Poverty Coalition’s updated profit tracker which examines profits made by a sample of companies that include energy producers (such as Equinor and Shell) through to the firms that control our energy grid (such as National Grid, UK Power Networks and National Gas Transmission) as well as suppliers (such as British Gas). It does not include supply chains or market trading firms.

As recently as October, changes in the price cap meant that suppliers will be able to make an additional 11% in profits on every standard variable tariff. Analysis of these figures suggest that supplier profits allowed through the Price Cap could amount to c.£1.2 billion over the next 12 months, enough to cover the cost of Winter Fuel Payments for almost all pensioners. [2]

Warm This Winter spokesperson Caroline Simpson said: “We reckon it’s about time the energy industry stopped lining their own pockets and supported the estimated 8.8 million people that have spent Christmas in cold damp homes.”

A March 2024 Warm This Winter Tariff Watch report also called for improvements in transparency of the ownership of energy network and transmission firms after it found that British households had been boosting the profits of Chinese and Qatari Government-backed funds.

ENDS

[1] Researchers examined the declared profits of the 20 energy firms the End Fuel Poverty Coalition is most asked to comment on. This sample of the industry ranges from energy producers (such as Equinor and Shell) through to the firms that control our energy grid (such as National Grid, UK Power Networks and Cadent) as well as suppliers (such as British Gas). It does not include supply chains nor market trading firms. Previous updates have been published on:

The updated tracker is available at: https://www.endfuelpoverty.org.uk/news/energy-firm-profits-tracker/

[2] Ofgem Price Cap decision, p4 https://www.ofgem.gov.uk/sites/default/files/2024-08/Summary_of_Changes_to_Energy_Price_Cap_1_October_to_31_December_2024.pdf. EBIT allowance from 1 October 2024 is £44 per standard variable tariff customer per year. Ofgem state that 27m customers are on a standard variable tariff. £44 * 27m = £1.19bn.