As countries began to recover from the COVID-19 pandemic in 2021, it seemed an increase in demand for gas could not be met due to a shortage in supply.
The conflict in Ukraine has led to even further increases in energy prices and security-of-supply concerns. But what effect did this really have on the big six energy companies, and how much money are these companies making?
In 2021, British Gas actually saw an increase in profits from the previous year. This 3% increase resulted in total profits of £115 million.
In the first half of 2022, British Gas’ pre-tax profits sat at £98 million.
E.ON’s energy networks (including Npower – a subsidiary of E.ON UK since January 2019) saw a high increase in profits in 2021, with the category hitting £4.1 billion.
It was predicted that this number would reach between £4.6 billion and £4.8 billion in 2022. The company announced earlier this year that it made £3.47 billion in the first six months of 2022.
Scottish Power UK Plc generated a modest profit of £77.8 million in 2021. This was a large drop following a good 2020, when the company generated almost £370 million in profits.
A dividend of £370.5 million was paid during the year.
EDF energy saw a hefty decline in performance in 2021, with the losses hitting £505 million. In fact, this was the largest reported loss among the UK’s large power suppliers.
It was also the biggest loss the company has ever seen, since it’s incorporation in 2002.
Where do we currently stand?
Though it’s hard to say just how high energy prices will go, or when they’ll begin to stabilise, some estimates suggest that bills could remain high until as far as 2024.