Households are paying £500 a year for energy company
profits
A new report by Unite Investigates Energy Profiteering
has lifted the lid on why the UK has the highest energy prices in
Europe, exposing huge levels of profiteering and reveals how
foreign countries and the world's richest individuals are
feasting on the profits.
The report reveals that in 2024, energy companies made a total of
£30 billion in pre-tax profits. This in turn resulted in every UK
household on average paying £500, of their already excessively
high heating bills, in profits. This is at a time when household
energy bills have increased by 42 per cent since Winter 2021.
The report also brings to light the excessive profits available
in the sector. The average profit margin in the sector is 23 per
cent (three times the national average). In some areas of the
sector especially in the grid, profit margins currently stand at
38 per cent.
While some people have blamed green levies for high energy bills,
the report found that excessive profits are a far bigger factor.
In 2024, green levies are under a third of energy profits (£9.9
billion) compared to £30 billion for profits. To make matters
worse the biggest green levy, the renewable obligations scheme,
is used to subsidise the profits of energy generators.
Unite general secretary Sharon Graham said: “What the
Unite energy costs report clearly shows, is that households
are being fleeced pure and simple.
Energy bills up by 42 per cent since 2021, whilst
energy companies made £30 billion profit in just one year. The
government is turning a blind eye to these excessive profits.
That must change. Everyday people cannot continue to
pay.
“The chaos of the current system has resulted in the
highest energy bills in Europe.
“We need to look at other countries like France and
begin to plan to own our own energy. Only then, can the
ever-bulging profits currently going to shareholders, be used to
keep bills down for households and businesses.”
The report details how some of the world's wealthiest people and
international investors have a significant stake in the UK's
privatised energy system. US Investors Blackrock and Vanguard
both have major stakes in UK energy companies. While Czech
billionaire Daniel Kretinsky owns gas generator EP, Hong Kong's
richest man Li Ka Shing is the largest shareholder in UK Power
Networks, while Warren Buffet is the largest shareholder in
Northern Powergrid.
Foreign states also financially benefit, receiving a third of all
energy profits. The Norwegian Government through its foreign
wealth fund received nearly £6 billion (£5.9) in gas profits.
This is by far the largest amount but other foreign states that
are receiving UK energy profits include France (owns nuclear
generator EDF), Denmark (owns wind generator Orsted) and Qatar
(gas importer and owns shares in many energy companies).
Unite reports sets out several measures to end corporate
profiteering of the energy sector including:
- Public ownership, through renationalisation at a book value
total cost of £90 billion, beginning with the Grid (both
transmission and distribution networks)
- A significant pay rise for energy workers so they directly
benefit from the profits they are producing
- A truly just transition for North Sea workers as the UK moves
to net zero
- Properly fund GB Energy to allow it to fully invest in new
generation projects
- Maintain a public stake in green energy projects so that the
UK directly benefits from future projects.
ENDS
Notes to editors
The full Unite
Investigates Energy Profiteering Report
