Energy companies in the UK have reported profits exceeding £23.1 billion in 2025, signaling potential increases in household bills during the upcoming summer. This marks a rise from £22.7 billion in 2024, as analyzed by the End Fuel Poverty Coalition, excluding returns related to the Iran conflict.
BP and Shell are anticipating robust financial performances, with BP expected to announce exceptional results for the first quarter soon, followed by Shell in early May.
The surge in oil prices, nearing $120 per barrel after the closure of the Strait of Hormuz, is expected to lead to significantly higher energy bills for UK households starting July, with projections suggesting the price cap could escalate to £1,837 annually, up from the current cap of £1,641 set by Ofgem.
Amid escalating energy costs for heating oil and LPG consumers, the government has introduced support measures. The End Fuel Poverty Coalition expressed concerns over the energy system’s failure to serve the public adequately, especially with the current geopolitical tensions impacting energy prices.
Calls for renewable energy investments and home upgrades to mitigate energy shocks and climate impacts have been emphasized, alongside the need for financial assistance to those most affected by rising energy costs. The coalition’s research revealed a slight decline in profits to £27.6 billion in 2023, during the peak of the Ukraine conflict.
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