Tuesday 1 Oct, 2024 / London – As UK energy bills officially increase by 10%, new Global Witness analysis reveals that UK oil production profits in 2024 alone would be enough to cover three quarters of the increased burden for households[1].
Energy regulator Ofgem has approved an increase in the typical energy bill to £1717 per year, increasing financial pressure on families after the 2022 energy crisis pushed millions into energy poverty.
Using Rystad Energy data, Global Witness estimates that oil and gas companies will make £3.2 billion profits in 2024 on production in the UK[2] alone. There are 28 million households in the UK, so this could offset £112 of the £149 average annual increase for each household.
Sarah Biermann Becker, Senior Investigator at Global Witness, said:
“As winter approaches, pensioners and families across the country will be frantic with worry about today's energy bill hike – but it doesn't have to be this way. UK households' basic needs must be prioritised over Big Oil’s bottom line.”
Polling by National Energy Action showed that half of British adults turn their heating off even when it is cold inside and almost a third struggled to pay their energy bills last winter. Companies continue to make massive profits on energy.
According to Rystad Energy’s projections, those making the biggest profits are all headquartered in the UK[3], with Harbour Energy at the top of the profits list making £488 million[4], followed by BP who will make £429 million,[5] and Shell who will make £412 million[6].
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ENDS
FOOTNOTES
[1] See excel sheet of exported Rystad data. Total profits converted to pounds in Column F, row 153. There are 28.4 households in the UK (footnote 3). Profits divided by number of households. Percentage calculated in Column D, row 156.
[2] Excel sheet, total profits converted to pounds in Column F, row 153./ pounds figure in row 154
[3] “Home to more than 500 people, BP’s global headquarters are in St. James’s Square in Central London.” https://www.bp.com/en_gb/united-kingdom/home/where-we-operate/london.html#:~:text=Home%20to%20more%20than%20500,corporate%20and%20business%20functions%20teams.
And Shell https://www.shell.com/who-we-are/contact-us.html
And Harbour Energy https://www.harbourenergy.com/contact-us/
https://www.harbourenergy.com/contact-us/
[4] Excel Column F, row 82
[5] Excel Column F, row 5
[8] Excel Column F, row 6