Energy companies in the UK recorded profits exceeding £23.1 billion in 2025, signaling potential increases in household energy bills for the upcoming summer season. This marked a slight rise from the previous year’s £22.7 billion, as reported by the End Fuel Poverty Coalition. Notably, these figures do not reflect the profits generated due to the Iran conflict.
Major players like BP and Shell anticipate robust financial performances, with BP set to unveil its results on Tuesday followed by Shell on May 7. The surge in oil prices to nearly $120 per barrel, driven by events like the closure of the Strait of Hormuz, is expected to translate into higher energy costs for UK residents starting this July.
Analysts predict that the energy price cap could climb to £1,837 annually, up from the current £1,641, pending Ofgem’s announcement by May 27. Particularly, households reliant on heating oil and LPG have already experienced substantial cost hikes, leading the government to introduce support measures.
Critics, including Simon Francis from The End Fuel Poverty Coalition and Robert Palmer from Uplift, express concern over the energy sector’s profitability amidst escalating global conflicts. They advocate for a transition towards renewable energy sources to shield consumers from future price shocks and address climate concerns. Moreover, they call for redistributing these profits to aid those most affected by the economic repercussions of energy price surges.
Research conducted by the End Fuel Poverty Coalition indicates that 30 energy firms collectively generated profits, showing a slight decline from the peak profit levels recorded during the Ukraine conflict in 2023. These insights underscore the ongoing challenges faced by consumers in navigating the energy landscape amid geopolitical tensions and market dynamics.