Britain’s largest energy supplier Centrica plans to cap its profits to reduce household bills, according to the Guardian newspaper. Chief Executive Chris O’Shea was quoted by the Guardian.
According to the newspaper, O’Shea stated that he wanted Centrica, British Gas’s owner, to be the first company to sign new, renegotiated contracts for its electricity generation.
O’Shea responded to a request from Reuters for comment, saying that “We are ready to offer our electricity production as well as our the North Sea and Irish Sagas production into this mechanism in order to reduce energy bills for customers and we hope others will follow.”
The Guardian reported that he did not provide further details and declined to disclose the percentage of Centrica’s profits that he would be willing to surrender.
Britain’s new Prime Minister Liz Truss pledged to limit soaring energy bills for two years, a move she claimed would protect both consumers and businesses.
Opposition parties suggested she should impose an energy generator windfall tax, but she rejected the idea and said that she would instead renegotiate certain contracts with generators. She hasn’t given any details about how it would work.
“We are in this business to create value for all our stakeholders, customers, country and colleagues.” O’Shea said that it’s not all about maximising profits this year; it’s about building a long-term sustainable company.”
Centrica saw a significant increase in its first-half profit due to asset sales and rising energy prices. The adjusted operating profit of Centrica for the first six months in 2022 was £1.34 billion pounds ($1.55 trillion), an increase of £262 million from a year ago.
