Britain’s largest household energy supplier, British Gas is on track to achieve its highest-ever first-half profits, benefitting from a significant boost due to Ofgem‘s decision to raise allowances for suppliers.
In a recent announcement, the parent company Centrica indicated that British Gas, is set to surpass its previous record of £585 million in 2010.
After enduring consecutive years of losses, the UK retail sector is anticipated to make a comeback and return to profitability.
With the drop in the energy price cap and a decrease in wholesale energy prices, the sector is anticipated to regain profitability this year, enabling suppliers to recover some of the losses incurred in recent years.
Analysts from Investec estimate that British Gas could report potential profits of £857 million, while UBS suggests a slightly lower figure of £687 million.
Regardless of the exact amount, the projected profits for British Gas would represent a remarkable increase compared to the £98 million earned during the same period in 2022.